Knight Capital Chief Quits

The popular leader of the trading firm Knight Capital, Thomas M. Joyce, unexpectedly resigned from the company a few days after it was formally taken over by the high speed trading firm Getco.

Mr. Joyce’s resignation from his position as chairman of the newly formed KCG Holdings is the latest fallout from the technology glitch that hit Knight last August and caused a $440 million trading loss cap

Mr. Joyce managed to save Knight from bankruptcy in the days after that mishap by winning the backing of a group of investors, including the Chicago-based Getco. Mr. Joyce sought to keep Knight independent, but in December, Getco reached a deal to acquire the firm in a $1.4 billion deal.

Within the industry, Mr. Joyce was seen as a key part of Knight’s good relationship with the clients who send their orders to Knight, including reail brokers such as TD Ameritrade and Fidelity. He is also credited with helping the organization recover from another near-death experience when he joined the company as chief executive in 2002.

Throughout the acquisition, Getco said that Mr. Joyce would be replaced as chief executive by Getco’s chief executive Daniel Coleman, but that he would stay with the company as chairman of the board.

On Wednesday morning, two days after the formal merger of the companies, Mr. Joyce wrote to the board and said “As you know, it was my recommendation to the Board that Knight remain independent,” according to a copy of an e-mail first published by Business Insider.

“I remain confident that, once the issue of independence was taken off the ta! ble, the merger with Getco was the best alternative available to Knight shareholders and other key stakeholders,” he said in the e-mail.

Larry Tabb, founder of the industry consultant, the Tabb Group, said it would be “critical” for the new Getco management to make sure that the retail brokers who work with Knight are comfortable with the new owners.

The company said that Mr. Joyce would be replaced by one of the founders of Getco, Stephen Schuler. In a statement. Mr. Coleman said, “Tom Joyce has always put clients first. His focus on client service continues to influence every aspect of our new organization.”