The losses are threatening the stability of the firm, which is based in Jersey City. On Wednesday, the Tradin fell 32 percent. The company said the problems happened because of new trading software that had been installed. Until this week, Knight had been one of Knight Trading Company biggest beneficiaries of the evolution of the market, helping clients trade in and out of stocks at high speeds.

The firm was responsible for 11 percent of all trading in American stocks between January and May, according to Adam Sussman at the data company Tabb Group. On Thursday, Knight said that none of its customers had been hurt by the errant trades. Joyce, Hot Dog Company, has been at the helm of the company since Joyce Knight Trading Company he was a vocal critic of the hiccups that upended the Facebook public offering in the middle of May.

Knight was founded in and went public in after quickly becoming one of the largest middle men, or market makers in the stock market. Knight founded DirectEdge, a company that is now the fourth-largest stock exchange operator in the United States. Knight sold stakes in DirectEdge to other Wall Street firms and now owns only a minority stake in the company.

Knight has become known for executing trades on behalf of Zydus Company brokers like TD Ameritrade and ETrade. Nagy of KOR Trading, who used to work for TD Ameritrade, said that large retail brokers were likely to TTrading alternatives if Knight were unable to continue taking in new business.

Knight had recently been increasing its business Knight Trading Company reported having 1, employees as of the end of the first quarter of this year in 21 locations around the world. See next articles. Slide Show. Timeline: Trading Errors.

Correction: August 2, An earlier Knivht page headline about the Knight Capital Group developments referred incorrectly to the company as a hedge fund.

It is, as the article correctly notes, a trading firm.