NYSE Reallocates Knight's DMM to Getco

Following on last week's trading system failure at Knight Capital, the New York Stock Exchange (NYSE) has temporarily reallocated custodial responsibility for 524 NYSE securities and an additional 156 NYSE MKT listed securities from Knight's designated market maker (DMM) unit to Getco.

The exchange says the move, made under applicable rules, is in the public interest until Knight's recapitalization plan is approved and completed, at which time the listed securities in question will return to Knight's responsibility. In the interim, Getco will assume responsibility for Knight's DMM staff and deploy its own technology platform in the combined operation.

Getco is among the consortium of firms reported to have infused Knight with necessary capital after the electronic broker lost $440 million last Wednesday.

"We believe this interim transition is in the best interests of investors, our listed issuers, market stability and efficiency, as well as Knight, as the firm finalizes its equity financing transaction. Our first priority is to ensure market integrity and an orderly trading environment in which investors and all market participants have confidence," says Larry Leibowitz, COO at NYSE Euronext.