ETF liquidity, electronic trading and rogue algorithms all came under renewed scrutiny in the wake of the Knight Capital debacle. But the pundits got it wrong: The ETF market is liquid and sound.
Last Wednesday, market maker Knight Capital (ticker: KCG) experienced a major computer glitch in its trading software, sending numerous erroneous orders of NYSE-listed stocks into the market and causing a $440 million loss for the firm. But th...
