Knight Capital hit by losses

KCG HOLDINGS, the US company formed by the merger of algorithmic traders Knight Holdings and Getco, last night slumped to heavy losses due to merger costs.

Knight, previously a top Wall Street company, was a high frequency trader that came close to collapse after an algorithm misfired in August 2012, leaving the company with a massive bill.

Getco and Knight made a combined loss of  $103.7m (£66.92m) in the second quarter.