JERSEY CITY, N.J., Aug. 2, 2012 /PRNewswire/ -- Knight
Capital Group, Inc. (NYSE Euronext: KCG) today provided an
update on the August 1, 2012
disruption to routing in NYSE-listed securities.
As previously disclosed, Knight experienced a technology issue
at the open of trading at the NYSE yesterday, August 1st. This issue was related to Knight's
installation of trading software and resulted in Knight sending
numerous erroneous orders in NYSE-listed securities into the
market. This software has been removed from the company's
systems.
Clients were not negatively affected by the erroneous orders,
and the software issue was limited to the routing of certain listed
stocks to NYSE.
Knight has traded out of its entire erroneous trade position,
which has resulted in a realized pre-tax loss of approximately
$440 million. Although the company's
capital base has been severely impacted, the company's
broker/dealer subsidiaries are in full compliance with their net
capital requirements. Knight will continue its trading and market
making activities at the commencement of trading today. The company
is actively pursuing its strategic and financing alternatives to
strengthen its capital base.
About Knight
Knight Capital Group (NYSE Euronext: KCG) is a global financial
services firm that provides access to the capital markets across
multiple asset classes to a broad network of clients, including
broker-dealers, institutions and corporations. Knight is
headquartered in Jersey City, N.J.
with a global presence across the Americas, Europe, and the Asia
Pacific regions. For further information about Knight,
please visit www.knight.com.
Certain statements contained herein may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are not historical facts and are based on current
expectations, estimates and projections about the Company's
industry, management's beliefs and certain assumptions made by
management, many of which, by their nature, are inherently
uncertain and beyond our control. Accordingly, readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict
including, without limitation, risks associated with the
August 1, 2012 disruption to routing
in NYSE-Listed securities and the impact to the Company's capital
structure, risks associated with the Company's ability to recover
all or a portion of the damages that are attributable to the manner
in which NASDAQ OMX handled the Facebook IPO, risks related to the
corporate restructuring in the third quarter 2011, including the
ability to recognize anticipated cost savings, the possibility of
unexpected costs or expenditures, and the impact of the
restructuring on the Company's businesses and results of
operations, risks associated with changes in market structure,
legislative, regulatory and financial rules changes, risks
associated with the Company's changes to its organizational
structure and management and the costs, integration, performance
and operation of businesses recently acquired or developed
organically, or that may be acquired or developed organically in
the future. Readers should carefully review the risks and
uncertainties disclosed in the Company's reports with the U.S.
Securities and Exchange Commission (SEC), including, without
limitation, those detailed under the headings "Certain Factors
Affecting Results of Operations" and "Risk Factors" in the
Company's Annual Report on Form 10-K for the year-ended
December 31, 2011, and in other
reports or documents the Company files with, or furnishes to, the
SEC from time to time. This information should also be read in
conjunction with the Company's Consolidated Financial Statements
and the Notes thereto contained in the Company's Annual Report on
Form 10-K for the year-ended December 31,
2011, and in other reports or documents the Company files
with, or furnishes to, the SEC from time to time.
SOURCE Knight Capital Group