In a letter to clients, the CEO of Knight Capital said that his firm is coming back, slowly, but surely, Bloomberg reports.
More importantly, things aren’t as bleak for Knight as everyone thought.
Last week the massive market-maker reportedly lost $440 million when a mistake in one of its new trading programs produced faulty trades during the first half hour of the trading day. Tom Joyce, Knight’s CEO, was forced to work over the weekend to secure financing and save the firm.
Yesterday, though, he told clients the worst was over. Instead of $440 million, Knight Capital lost around $270 million after taxes, Joyce wrote in a letter obtained by Bloomberg. The firm’s relationships with Depository Trust & Clearing Corp. and the Options Clearing Corp. are still OK as well, and the company is still holding sufficient capital to meet requirements.
The NYSE announced that the firm would resume trading on August 13th.
What a relief.