August 7, 2012 / 9:28 PM / in 5 years

NYSE says Knight to resume market maker duties

NEW YORK (Reuters) - NYSE Euronext NYX.N said on Tuesday that Knight Capital Group KCG.N would resume its responsibilities as a designated market maker on the New York Stock Exchange next Monday.

NYSE had temporarily reassigned Knight’s designated market maker responsibilities to market maker Getco on Monday while Knight finalized a $400 million recapitalization plan after a technical glitch last week caused a massive trading loss that nearly sank the firm.

    Getco, along with Jefferies Group Inc JEF.N, Blackstone Group LP (BX.N), and financial services companies TD Ameritrade Holding Corp AMTD.N, Stifel Nicolaus (SF.N) and Stephens Inc, provided the emergency financing on Monday. The investor group will now own 73 percent of Knight.

    Market makers buy and sell shares for clients and provide liquidity to equity markets by stepping in to buy and sell stocks, using their own capital to ensure orderly activity.

    Reporting By John McCrank; Editing by Kenneth Barry

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