As you're probably aware, GETCO - one of the world's largest high frequency trading (HFT) prop shops, is buying Knight Capital. This came about after Knight nearly collapsed when a technical glitch on August 1, 2012 caused it to lose $440 million. While the acquisition is clearly opportunistic, since Knight was so crippled after its August losses, the move also signals GETCO's lack of confidence in the long term profitability of the HFT model, particularly in equities.
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