A deal must be finalized within a few days, reported the financial news agency bloomberg. According to the wall street journal, knight told trading partners that at least friday was secured thanks to a new credit line.
The catastrophe began on wednesday. The new software flooded the market with erroneous trade orders at launch. More than 140 shares were affected, the share prices were out of line, and trading in various securities had to be suspended for a time. Most of the confusion took place from 9.30 to 10.15 new york time off until company technicians could stop software. The mistake was particularly devastating for knight capital itself: the firm was left holding many overpriced shares after the order firestorm, with losses adding up to $440 million.
Investors loved knight: the stock lost 75 percent of its value in two days, and the stock’s value shrank to just over 250 million dollars. On friday the early new york trade went up again by a good quarter auarts after the news of the fresh credit.
The 17-year-old company was considered a pillar of the market with a daily trading volume of 20 billion dollars, as the "wall street journal" pointed out. According to the newspaper, knight boss thomas joyce had knee surgery on tuesday. Since wednesday, he has spent hours trying to calm down customers and spent the night sleeping on the couch in his office. The supervisory authority finra has meanwhile begun initial investigations into the case.
Knight, meanwhile, has opened the books to several potential buyers, including financial investors and at least one industry competitor, bloomberg reported. It’s a matter of entry or takeover. Among others, the investment bank goldman sachs helped in the search for an investor, it said. In view of possible trouble with regulators, it is uncertain whether a rough bank will dare to make a serious bid, reported the CNBC channel, citing its sources. In the meantime, the trading volume had also fallen drastically because many partners had said goodbye.