KCG Holdings

Last updated
KCG Holdings
Company type Subsidiary
NYSE: KCG
Industry Financial services
Founded2013 from merger of Knight Capital Group and Getco LLC
Headquarters New York City, New York, United States
Key people
Daniel Coleman, Chief Executive Officer
ProductsMarket making and trading
RevenueIncrease2.svg US$ 1.45 billion (2016) [1]
Decrease2.svg US$ 61.1 million (2014) [2]
Total assets Decrease2.svg US$ 6.830 billion (2014) [2]
Total equity Increase2.svg US$ 1.522 billion (2014) [2]
Number of employees
1,093 (2014) [2]
Parent Virtu Financial
Subsidiaries NetDelta LLC
Website www.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. [3] The company was formed on July 1, 2013, upon the completion of the merger between Knight Capital Group, Inc. and GETCO Holding Company, LLC. [4] Global growth equity firm General Atlantic, who had 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 [5]

Contents

On April 20, 2017, KCG announced that it had agreed to be acquired by Virtu Financial for $20 per share in cash in a deal valued at approximately $1.4 billion. [6] [7]

History

Getco LLC was founded in 1999 [8] 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 [9] 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 subsequently dubbed the "Knightmare" caused Knight to lose $460m in the course of one trading day, nearly putting the firm out of business. [10] 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. [4]

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. [11]

In 2014, 27 million shares of Platinum Studios were acquired by KCG Holdings. [12]

In January 2015, KCG Holdings announced it would be selling its foreign exchange trading platform KCG Hotspot to BATS Global Markets for $365 million. [13]

In April 2017, Virtu Financial announced that it would purchase KCG Holdings for US$1.4 billion in cash. [14] The acquisition closed on July 20, 2017. [15]

See also

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References

  1. Company profile dnb.com
  2. 1 2 3 4 "KCG - Press Release". KCG Holdings, Inc.
  3. "About Us | KCG" . Retrieved 2013-07-10.
  4. 1 2 "Knight Capital Group And GETCO Complete Merger". news.kcg.com. KCG Holdings.
  5. "GETCO to Acquire Knight Capital (KCG) for $3.75/Share in Cash and Stock". Street Insider. Retrieved 16 December 2015.
  6. Shankar, Sruthi. "Virtu Financial is buying KCG Holdings for $1.4 billion". Business Insider. Retrieved 2020-08-06.
  7. "Trading firm Virtu Financial to buy KCG for about $1.4 billion". Reuters. 2017-04-20. Retrieved 2020-08-06.
  8. Marek, Lynne (3 July 2013). "KCG taps former Getco CEO Schuler". Chicago Business.
  9. "History". KCG Holdings.
  10. October 23, 2013, Register, "Lone Sysadmin triggers 462 Million dollar crash"
  11. "NYSE Press Release, July 03, 2013". Archived from the original on July 29, 2015. Retrieved September 2, 2017.
  12. MacDonald, Heidi. "Is a holding company acquiring what is left of Platinum Studios?," The Beat (Mar. 4, 2014).
  13. "Deals of the day- Mergers and acquisitions". Reuters. 28 January 2015. Retrieved 2015-02-02.
  14. Virtu Financial, Inc. Agrees to Acquire KCG Holdings, Inc. to Create a Premier Market Maker and Agency Execution Firm virtu.com
  15. "Virtu Financial, Inc. Completes Acquisition of KCG Holdings, Inc". ir.virtu.com. Retrieved 2018-03-19.

Category:Companies based in London, United Kingdom