The New York Stock Exchange (NYSE)) has confirmed that trading responsibility for more than 670 securities will return to Knight Capital’s IT platform on 13 August, after they were transferred to rival GETCO’s platform.
The transfer to GETCO occurred after Knight suffered a major software fault with the installation of its trading software last week, which then resulted in numerous erroneous orders in NYSE-listed securities into the market.
GETCO temporarily assumed responsibility for Knight’s market maker unit on Monday, otherwise known as NYSE’s trading floor activity, where it has an obligation to keep the stock market fair and orderly, and facilitate price discovery throughout the day, as well as at the open, close and in periods of high volatility.
“Knight and GETCO have demonstrated outstanding commitment and leadership in serving the best interests of investors, our listed issuers and market stability,” said Larry Leibowitz, chief operating officer (COO) at NYSE Euronext.
“We applaud the teamwork and collaboration by all parties involved to ensure smooth, efficient and seamless transitions.”
NYSE said at the time that exchange rules permitted the transfer, as it was in the public interest to do so.
Knight Capital also confirmed earlier this week that a consortium of Wall Street firms would inject $400 million (£256 million) into the company in an attempt to reverse the damage caused by the glitch.
The convertible share placement agreement, which would give the firms control of the broker, involves GETCO, Blackstone Equity, Ameritrade and Stifel.