Getco, the high frequency trading firm that bought Knight Capital last year, reported earnings for the first time yesterday, and it was total carnage.The company’s profits were down 82% from this time last year because the market lacked the high volume and volatility high frequency traders feed off of, according to Bloomberg:
Net income fell 82 per cent to $24.6 million in the nine months ended Sept. 30, compared with $134.8 million a year ago, according to a filing today. Revenue decreased 41 per cent to $425.3 million. Getco agreed to buy Knight in a $1.4 billion deal after the market maker lost more than $450 million when computers generated a flood of erroneous orders in August.
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