After one of the darkest days in its 17 year history, the Knight Capital Group saw its stock rise sharply on Friday.
Shares in the beleaguered trading firm were up nearly 33 percent, to $3.43, as Knight officials told customers that it had financing lined up for the day, according to people with direct knowledge of the matter.
The move offered some relief. Knight has been battered by its disclosure of a $440 million loss tied to an errant trading program that moved the stocks of 148 companies earlier this week.
On Friday, Knight executives called other trading companies, telling them that the firm was seeking the return of customer orders. One person who received such a call was told that Knight believes it can now handle transactions.
However, many of the firm's biggest customers have yet to return. Vanguard, TD Ameritrade, E*Trade Financial and Scottrade are still refraining from sending trade orders through Knight, according to representatives f or each of the firms.
Kim Hillyer, a spokeswoman for TD Ameritrade, told DealBook that the brokerage was running internal tests to see if customers would be affected by a return to using Knight. “They've been a good partner and a trusted partner of ours for years,†she said.
It's unclear what other steps the firm might be taking as it tries to recover. Knight and its advisers have been soliciting potential suitors for various parts of its businesses, including rivals like Citadel and Virtu Financial, according to people briefed on the matter.
Knight spokeswoman was not immediately available for comment. News of the financing was reported earlier by The Wall Street Journal online.
Nathaniel Popper contributed reporting.
