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Knight Investors Eye Prize in Market-Making for Individuals

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The investors who bailed out Knight Capital Group Inc. by purchasing $400 million in convertible securities are gaining control of the biggest trading partner for individuals in the world’s largest stock market.

While last week’s $440 million trading loss highlighted Knight’s importance to institutional traders, the company accounted for 29 percent of the average monthly volume in U.S. equity trading by individuals in the first quarter, according to a June 7 presentation. Stifel Nicolaus & Co. and TD Ameritrade Holding Corp., two of the firm’s rescuers, sent 38 percent and 9 percent of market orders in New York Stock Exchange-listed securities to Knight last quarter, respectively, according to public execution-disclosure statements.