Knight Capital Group Inc (NYSE:KCG) has regained some of the market share it lost after a huge trading loss last week nearly ran it out of business and will resume full market-making responsibilities as of next week.

Knight, which secured a $400 million bailout from an investor consortium in exchange for a 73 percent stake, may have turned down a more lucrative rescue bid that might have had less of an effect on shareholders from hedge fund Citadel LLC, a source familiar with negotiations said on Tuesday.

The bailout has restored some confidence in the firm days after a software glitch caused a trading loss of $440 million - most of Knight's capital - and caused customers to desert. Trading volumes are now steadily recovering.

Knight has been the largest U.S. provider of retail market-making in New York Stock Exchange and Nasdaq-listed stocks, buying and selling shares for clients.

NYSE Euronext in a statement on Tuesday said that Knight would resume as of Aug.