Some competitors such as Goldman Sachs stepped in to fill the void but Knight has recovered most of the ETF share volume, according to the article.
On Aug. 1, trading in some individual stocks went haywire after a software malfunction resulted in Knight sending erroneous orders. Knight absorbed a loss of $440 million and subsequently announced $400 million of financing from a group of investors.
John Hyland, the chief investment officer at United States Commodity Funds, told Institutional Investor it looks like not many ETF investors or traders were hurt much by the event. “This seems to be really about Knight shooting their foot off,” he said.
“I’m sure all market makers are trying to take advantage of this. If you’ve got a wounded competitor, you’re going to be taking market share when you can,” Timothy Strauts, an ETF analyst with Morningstar, told WSJ.com’s MarketBeat. [Five Lessons for ETF Investors After the Knight Meltdown]