Reports: Knight Capital Trying to Sell Market Making Unit
Knight Capital (NYS: 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 (NYS: JEF) and including Blackstone (NYS: BX) and TD AMERITRADE (NYS: AMTD) .
The article Reports: Knight Capital Trying to Sell Market Making Unit originally appeared on Fool.com.Eric Volkman owns shares of TD AMERITRADE Holding. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend TD AMERITRADE Holding and Jefferies Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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