Knight Capital

Knight Capital Group was a prominent financial services firm based in Jersey City, New Jersey, specializing in market making, electronic execution, and institutional trading, primarily utilizing high-frequency trading in U.S. equities. By 2011, it was a significant player with approximately 1,450 employees and a $1.5 billion valuation, holding substantial market share as the largest trader on NYSE (17.3%) and NASDAQ (16.9%). The firm, co-founded in 1995 by Walter Raquet and Kenneth Pasternak, faced a critical challenge in August 2012 when a software glitch caused a devastating $460 million loss. To stabilize operations, a crucial $400 million investment was secured from investors led by Jefferies, including Richard Handler and Brian Friedman. Under CEO Thomas Joyce's oversight, Knight Capital Group was subsequently acquired by Getco LLC in December 2012, leading to the formation of KCG Holdings.