Knight Trading Group

(NITE)

benefited in August from a rise in trading bulletin board stocks.

The

Nasdaq

TST Recommends

market maker, which matches buy and sell orders, posted data on its Web site Friday showing a 21% boost in average daily trading of very small market-cap company shares in August compared with July. The increase offset a 6% decline in Nasdaq shares traded that month.

Overall, Knight traded about 1% more shares in August than in July, 336.8 million compared with 334.3 million.

A decline in bulletin board stock trading, spurred by the spring's market weakness and volatility, has weighed down Knight's operations for several months.

The August bulletin board figures mark a return to levels last seen in April, but they're still less than a third of peak levels in February.

Knight's own stock, which has been

rising this week on speculation that the Jersey City, N.J., house will be the next shop taken over by a big Wall Street brokerage, was up slightly Friday. A statement on Knight's Web site says that the company doesn't comment on market rumors. In recent trading, the stock was up 44 cents, or 1.2%, at $38.25.