Nov 24 Knight Capital Group Inc is in
talks about possibly selling its market-making operation, its
largest and most profitable business, the Wall Street Journal
reported, citing people briefed on the discussions.
The securities firm has been approached by at least two
rivals about its market-making operation, which uses complicated
computer models to match buy and sell orders in stocks and
Knight's board of directors is expected to get separate
proposals next week for the market-making business from
high-speed trading firms Getco LLC and Virtu Financial LLC, the
Journal reported, citing the people who were briefed. Other
potential buyers also could approach the board about that
business and perhaps others.
Getco and Virtu spokespeople declined comment on the report.
A Knight spokeswoman was not immediately available for comment.
The unit had $663.8 million in pretax profits from 2009 to
2011 but suffered a loss of $400.9 million in this year's first
nine months because of a software glitch that flooded the market
with errant trades on Aug. 1.