Knight Trading Sees Losses, Cuts Staff

Discussion in 'Prop Firms' started by trader99, Jul 3, 2002.

  1. trader99


    Wednesday July 3, 9:46 am Eastern Time
    Reuters Business Report

    JERSEY CITY (Reuters) - Knight Trading Group Inc.

    (NasdaqNM:NITE - News). on Wednesday said it would report a quarterly loss, missing analyst expectations, and it also said it had shed 10 percent of its work force, pushing shares down sharply.

    The leading Nasdaq share-dealing firm said it has been crippled by low trading volume and lack of volatility in the market. It said it sees a loss of 4 to 6 cents a share in its second quarter, excluding charges of up to 15 cents a share.

    Wall Street analysts on average had been expecting the company to break even, according to Thomson First Call. Estimates ranged from a loss of 5 cents per share to a profit of 7 cents per share.

    The company also said it had cut 10 percent of its work force. In March the company said it had 1,300 employees and its Wednesday release said it had 1,110. But it was not clear whether the latter figure included the 10 percent cut.

    A company representative was not immediately available for comment.

    Second- quarter charges from international operations are projected in range of 10 cents to 12 cents. Knight also reviewed domestic operating and real estate costs during the second quarter and will take a charge of 2 to 4 cents.

    Its stock has also been rocked by allegations it made improper trades when markets were booming, which it denied.

    Shares of Knight were off 93 cents, or about 20 percent, in premarket trading, from a close of $4.68 in Wednesday Nasdaq trade.
  2. they had to stop backing away and generally clean up their act a while their going bust
  3. Let's see them trade like the rest of us without order flow and see how they do... Those "traders" would get creamed. What do you call an ex-NITE market maker? Waiter.
  4. rich