WASHINGTON (dpa-AFX) - Knight Capital Group Inc. (KCG), a New Jersey based financial services company, is in talks to sell its market-making operation, the Wall Street Journal reported, citing people familiar with the matter.
Knight's board 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 quoting the people. Other potential buyers also could approach the board about that business and perhaps others.
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 August 1.
In October, Knight Capital Group reported a loss in its third quarter compared to a profit a year ago, reflecting a $461.1 million trading loss and charges pertaining to a technology issue.
In the third quarter, the company reported net loss attributable to common stockholders of $764.3 million, or $6.30 per share, versus profit of $26.93 million or $0.29 per share prior year.
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