Reports: Knight Capital Trying to Sell Market Making Unit

Knight Capital (NYSE: KCG  ) is holding talks on the possible divestment of its market making unit, The Wall Street Journal and Reuters have reported. Citing sources with knowledge of the discussions, whom it did not name, the WSJ said Knight is expected to receive separate proposals this week from high-speed trading companies Getco and Virtu Financial.

The market making division is the company's largest and most profitable, according to the WSJ, but it also engendered controversy when a glitch in its software unleashed a flood of errant stock orders this past August. That incident plunged Knight into a third-quarter net loss of nearly $390 million, and necessitated a financial rescue from an investor consortium led by Jefferies Group (NYSE: JEF  ) and including Blackstone (NYSE: BX  ) and TD AMERITRADE (NYSE: AMTD  ) .

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2126538, ~/Articles/ArticleHandler.aspx, 10/24/2014 4:31:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement