Knight Capital Group (KCG) said Thursday that it will face a $440 million loss for causing a glitch that affected trading activity in nearly 150 NYSE-listed stocks.
Knight said in a statement that it has closed out of all its positions related to the erroneous orders and removed the software that caused the problems from it systems.
Shares of Knight, which fell 33% Wednesday, plunged as much as 54% in early trading Thursday.
Click on chart for Knight's stock price
Knight was already facing $30 million to $35 million of losses related to Nasdaq's (NDAQ) trading glitches on the day of Facebook's (FB) public debut.
With these massive losses on its books, Knight said it is now actively seeking ways to raise more capital. The company didn't specify whether it might also be looking for a buyer. With Knight's stock cratering, it seems like almost any available option will be on the table.
A big question is whether brokers who can trade elsewhere will still be willing to route orders through Knight's systems. The company tried to quell those concerns, saying in a statement that Knight and its subsidiaries were "in full compliance" with capital requirements.
Related: Knight's bizarre trades rattle markets
Knight CEO Thomas Joyce has not yet spoken publicly about the trading errors. His silence, even over 24 hours, is a sharp departure from his seeming omnipresence after Nasdaq's problems trading Facebook. Joyce has been a publicly vocal critic of Nasdaq and its CEO, Robert Greifeld, since May.
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