NEW YORK (Reuters) - The financial services firms that rescued Knight Capital Group
Knight encouraged the six firms that infused $400 million into the company on August 6 to sell some of their stake to Scottrade Inc, a unit of Scottrade Financial Services Inc
Knight is one of the two biggest executors of stock trades in the United States, and Scottrade is one of its biggest customers.
Private equity giant Blackstone Group LP
At least one other firm also is expected to make a regulatory filing about its sale imminently, said one of the sources, and the other three are expected to follow suit.
Scottrade has indicated it will be a long-term investor, said one person familiar with the transactions.
A spokeswoman for Scottrade did not immediately return a call for a comment. The Scottrade purchase was reported earlier by Fox Business Network.
Discount brokers including TD Ameritrade Holding Corp
Blackstone, Getco, TD Ameritrade, New York-based investment bank Jefferies Group
The securities pay a dividend of 2 percent, and convert if the stock closes at $3 or higher for a fixed period of time.
Spokeswomen for Knight and for Getco declined to comment on any sales. Blackstone was not immediately available for comment.
Knight's crisis occurred on August 1, when a software glitch flooded the New York Stock Exchange with unintended orders for dozens of stocks. The error cost Knight, which sold most of its unwanted shares at a discount to Goldman Sachs Group
Shares of Knight closed down 1.8 percent at $2.77 on Wednesday.
(Reporting by John McCrank and Jed Horowitz in New York; Editing by Phil Berlowitz, Bernard Orr)