Company:KCG Holdings

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KCG Holdings
TypeSubsidiary
NYSE: KCG
IndustryFinancial Services
FateAcquired in April 2017 by Virtu Financial
Founded2013 from merger of Knight Capital Group and Getco LLC
HeadquartersNew York City , New York, United States
Key people
Daniel Coleman, Chief Executive Officer
ProductsMarket making and trading
RevenueIncrease US$ 1.316 billion (2014)[1]
Decrease US$ 61.1 million (2014)[1]
Total assetsDecrease US$ 6.830 billion (2014)[1]
Total equityIncrease US$ 1.522 billion (2014)[1]
Number of employees
1,093 (2014)[1]
Websitewww.kcg.com

KCG Holdings, Inc. was an American global financial services firm engaging in market making, high-frequency trading, electronic execution, and institutional sales and trading.[2] The company was formed July 1, 2013 at the completion of the previously announced merger whereby Knight Capital Group, Inc. and GETCO Holding Company, LLC were combined.[3] Global growth equity firm General Atlantic, with a 25% stake in GETCO, made an additional equity investment at the time of the merger. Rene Kern, Managing Director at General Atlantic joined the board of directors[4]

On April 20, 2017, KCG announced that it had agreed to be acquired by Virtu Financial for $20 per share in cash.

History

Getco LLC was founded in 1999[5] by Stephen Schuler and Daniel Tierney, former floor traders in Chicago, and had 400 employees at the time of the merger. The firm's primary business was electronic market making/high-frequency trading, though it also provided execution algorithms and a dark pool through its client services arm, Getco Execution Services.

Knight Capital Group was founded in 1995[6] as Knight/Trimark Group and had about 1400 employees at the time of the merger. Its largest business was market-making in US equities for retail brokerages, though it also provided other services such as electronic execution, dark pools, plus institutional sales and trading. In August 2012, a technological/managerial "breakdown" caused Knight to lose $460m, nearly putting the firm out of business.[7] In December 2012, it agreed to be acquired by Getco LLC. The merger was approved by the respective stockholders and unitholders of both companies on June 25, 2013.[3]

On July 8, 2013, Chief Executive Officer Daniel Coleman rang the opening bell at the New York Stock Exchange, marking the completion of Knight and Getco's merger and the unveiling of a new corporate identity, KCG Holdings.[8]

In January 2015, KCG Holdings announced it would be selling its foreign exchange trading platform KCG Hotspot to BATS Global Markets for $365 million.[9]

See also

  • Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning, a 2016 Supreme Court case involving naked short selling claims against KCG and Merrill Lynch, among others.

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 "KCG - Press Release". KCG Holdings, Inc.. http://investors.kcg.com/phoenix.zhtml?c=105070&p=irol-newsArticle&ID=2012102. 
  2. ↑ "About Us | KCG". http://www.kcg.com/about/. Retrieved 2013-07-10. 
  3. ↑ 3.0 3.1 "Knight Capital Group And GETCO Complete Merger". KCG Holdings. http://news.kcg.com/phoenix.zhtml?c=105070&p=irol-newsArticle_print&ID=1834388. 
  4. ↑ "GETCO to Acquire Knight Capital (KCG) for $3.75/Share in Cash and Stock". Street Insider. http://www.streetinsider.com/Hot+Corp.+News/GETCO+to+Acquire+Knight+Capital+%28KCG%29+for+$3.75Share+in+Cash+and+Stock/7959055.html. Retrieved 16 December 2015. 
  5. ↑ Marek, Lynne (3 July 2013). "KCG taps former Getco CEO Schuler". Chicago Business. http://www.chicagobusiness.com/article/20130703/NEWS01/130709917/kcg-taps-former-getco-ceo-schuler. 
  6. ↑ "History". KCG Holdings. https://www.kcg.com/about/history. 
  7. ↑ October 23, 2013, Register, "Lone Sysadmin triggers 462 Million dollar crash"
  8. ↑ "NYSE Press Release, July 03, 2013". https://www.nyse.com/about/newsevents/1372847264045.html. 
  9. ↑ "Deals of the day- Mergers and acquisitions". Reuters. http://uk.reuters.com/article/2015/01/28/deals-day-idUKL4N0V747320150128. Retrieved 2015-02-02. 

External links




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