KCG Holdings, Inc.was an American global financial services firm engaging inmarket 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 betweenKnight Capital Group, Inc.andGETCO Holding Company, LLC.[4]Global growth equity firmGeneral 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]
 | |
| Company type | Subsidiary |
|---|---|
| NYSE:KCG | |
| Industry | Financial services |
| Founded | 2013 from merger ofKnight Capital GroupandGetco LLC |
| Headquarters | New York City,New York,United States |
Key people | Daniel Coleman, Chief Executive Officer |
| Products | Market making and trading |
| Revenue |  US$ 1.45 billion (2016)[1] |
 US$ 61.1 million (2014)[2] | |
| Total assets | US$ 6.830 billion (2014)[2] |
| Total equity | US$ 1.522 billion (2014)[2] |
Number of employees | 1,093 (2014)[2] |
| Parent | Virtu Financial |
| Subsidiaries | NetDelta LLC |
| Website | kcg |
On April 20, 2017, KCG announced that it had agreed to be acquired byVirtu Financialfor $20 per share in cash in a deal valued at approximately $1.4 billion.[6][7]
History
editGetco LLCwas 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 electronicmarket making/high-frequency trading,though it also provided execution algorithms and adark poolthrough its client services arm, Getco Execution Services.
Knight Capital Groupwas 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 retailbrokerages,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 theNew 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 toBATS Global Marketsfor $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
edit- Merrill Lynch, Pierce, Fenner & Smith Inc. v. Manning,a 2016 Supreme Court case involvingnaked short sellingclaims against KCG and Merrill Lynch, among others.
References
edit- ^Company profilednb
- ^abcd"KCG - Press Release".KCG Holdings, Inc.
- ^"About Us | KCG".Retrieved2013-07-10.
- ^ab"Knight Capital Group And GETCO Complete Merger".news.kcg.KCG Holdings.
- ^"GETCO to Acquire Knight Capital (KCG) for $3.75/Share in Cash and Stock".Street Insider.Retrieved16 December2015.
- ^Shankar, Sruthi."Virtu Financial is buying KCG Holdings for $1.4 billion".Business Insider.Retrieved2020-08-06.
- ^"Trading firm Virtu Financial to buy KCG for about $1.4 billion".Reuters.2017-04-20.Retrieved2020-08-06.
- ^Marek, Lynne (3 July 2013)."KCG taps former Getco CEO Schuler".Chicago Business.
- ^"History".KCG Holdings.
- ^October 23, 2013, Register, "Lone Sysadmin triggers 462 Million dollar crash"
- ^"NYSE Press Release, July 03, 2013".Archived fromthe originalon July 29, 2015.RetrievedSeptember 2,2017.
- ^MacDonald, Heidi."Is a holding company acquiring what is left of Platinum Studios?,"The Beat(Mar. 4, 2014).
- ^"Deals of the day- Mergers and acquisitions".Reuters.28 January 2015. Archived fromthe originalon April 8, 2017.Retrieved2015-02-02.
- ^Virtu Financial, Inc. Agrees to Acquire KCG Holdings, Inc. to Create a Premier Market Maker and Agency Execution Firmvirtu
- ^"Virtu Financial, Inc. Completes Acquisition of KCG Holdings, Inc".ir.virtu.Retrieved2018-03-19.
External links
edit- Sign up for an account: kcgbtc[1]
Category:Companies based in London, United Kingdom