Brokerage firm Knight Capital Group Inc has appointed three new directors, including the chief executive of TD Ameritrade Holding Corp, three weeks after it received a $400 million outside investment, the Wall Street Journal reported, quoting people familiar with the matter.
The move stems from steps the company took to stay afloat after technical errors on Aug. 1 caused unintended trades that punched a $440 million hole in its balance sheet, the paper said.
Earlier in the month, a group of investors including Blackstone Group, Getco and financial services companies TD Ameritrade, Stifel Nicolas, Jefferies Group Inc and Stephens Inc rescued the embattled market maker in a deal that kept it in business.
Fred Tomczyk, the CEO of TD Ameritrade, will join Knight Capital's board immediately following an announcement that could come as early as today, the WSJ said.
The two other entrants to the Knight board are Martin Brand, the managing director of Blackstone Group LP and Matthew Nimetz, advisory director of General Atlantic LLC, the paper added.
Knight is one of the two biggest executors of stock trades in the United States.
It declined to comment to the journal. The company could not be reached for immediate comment outside of U.S. office hours.
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