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Power outage hits Knight Capital, cuts off trading; markets reopen mostly smoothly after storm

Nov 01 2012 John McCrank, Reuters

A failed backup power generator has forced Knight Capital Group to tell clients to route all stock orders away from the brokerage on Wednesday, as the effects of Sandy, the massive storm that slammed into the U.S. East Coast, were still being felt. It was the second time in three months the Jersey City, New Jersey-based broker has had to ask clients to route orders elsewhere. Knight, a top U.S. market maker - a brokerage that buys and sells stocks for clients and ensures orderly trading - said the generator failed before midday, affecting its institutional equities sales and trading, and market-making businesses. Like many other firms in the New York metro area, the company was operating on backup energy after the massive storm Sandy hit late on Monday, knocking out power for millions. Knight's clients have been told to send their NYSE-listed and Nasdaq stocks, along with options trades, elsewhere. "All computer interfaces with Knight will be shutdown

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