After a series of potentially devastating events befell Knight Capital Group, the market-making titan finally got a piece of good news on Friday: two key brokerage partners were back online.
TD Ameritrade and Scottrade, two of the nation’s largest online brokers, said that, following a trading freeze, they had resumed routing through Knight Capital.
Those decisions mark a significant victory for the market-maker, who, after being hit with $440M in losses following a trading glitchon Wednesday morning, has been struggling to get its core business up and running.
The company has been scrambling to put a deal together with potential suitorsor lenders as it rushes to shore up its capital positions.
Scottrade, which typically relies on Knight to route more than 30% of its client orders for NYSE and Nasdaq listed securities, said it had decided to resume business with the firm “on a limited basis” as of approximately 1:30PM/ET. TD Ameritrade said in a statement that “after considerable review and discussion” it had resumed its order routing relationship with Knight.
