Thomas Joyce, CEO of Knight Capital Group, has lost no time in addressing concerns about a trading software problem that almost doomed the company. The error caused price distortions in almost 150 stocks, and Knight lost $440 million in a half-hour. In total, Knight has lost 600 million shares.
Joyce has been vocal on business news programs, trying to rebuild confidence in Knight. Sources say he has been transparent about the error and about the company's decision to accept a cash infusion.
On CNBC, Joyce started on a positive note. He said that the industry has responded well to the crisis: "The wildly flattering thing was how our clients responded to us." Joyce then said that the company made clients the priority, admitting, "There was a problem. We took the consequences. None of our clients took the consequences. And, importantly, the industry didn't suffer."
Joyce also explained what happened: "Sadly, it was a very simple breakdown...an issue with trading technology... Right now, we're doing an internal investigation." Joyce was firm about coming up with solutions.
When Joyce was asked about an interaction with SEC chair Mary Shapiro, Joyce addressed the question directly. He admitted contacting her while on vacation to request that the SEC cancel some of the incorrect trades. She refused.
"She did what she thought was right for the industry... I'm kind of biased, I wish she had made a different decision, but she did what she thought was right..."
- Watch Joyce's interview on CNBC.What strategies does he use to rebuild confidence in the firm?
- What non-verbal communication skills does Joyce use during the interview? Which are effective, and which, if any, are not?