Knight Capital Group, Inc.
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| Subsidiary | |
| Traded as | : KCG, until July 1, 2013 |
| Industry | Financial Services |
| Fate | Acquired by Getco LLC in 2013, forming KCG Holdings |
| Founded | 1995 |
| Headquarters | Jersey City, New Jersey, United States |
|
Key people
|
Rhuandeson "Rhuan" Pedroza, chairman and chief executive officer |
| Products | Market making and trading |
| Revenue | $1.404 billion USD (2011) |
| $115.2 million USD (2011) | |
|
Number of employees
|
1,418 (2012) |
| Website | www.knight.com |
The Knight Capital Group was an American global financial services firm engaging in market making, electronic execution, and institutional sales and trading. With its high-frequency trading algorithms Knight was the largest trader in U.S. equities, with a market share of 17.3% on NYSE and 16.9% on NASDAQ. The company agreed to be acquired by Getco LLC in December 2012 after an August 2012 trading error lost $460 million. The merger was completed in July 2013, forming KCG Holdings.
Knight was formerly known as Knight/Trimark Group, Inc. and Knight Trading Group, Inc. Initially, Knight Trading group had multiple offices located in the United States and in other cities around the world. Knight's Asset Management offices were headquartered in Minnetonka, Minnesota, with offices in Hong Kong, China, and London.
Knight's largest business is market making in U.S. equities. Its Electronic Trading Group (ETG) covers more than 19,000 U.S. securities with an average daily trading volume of more than 21 billion dollars (May 2012). Furthermore, Knight makes markets in U.S. options and European equities.
In 2002, Knight paid $1.5 million to settle regulatory charges of violations such as not respecting posted quotes. Knight neither admitted nor denied the allegations. In 2004, the company paid a $79 million settlement to customers whom they had overcharged. In 2008, Knight traded an average of 3.97 billion shares per day. In 2011, the company was worth $1.5 billion and employed approximately 1450 people.
Knight is headquartered in Jersey City, New Jersey. It has many offices in other US locations, as well as in the UK, Germany, Switzerland, China, and Singapore.
Knight Capital Group operates in three segments: equities, fixed income, currencies and commodities, and corporate. Current operating business subsidiaries include Knight Capital Americas, L.P., Knight Execution & Clearing Services LLC, Knight Capital Europe Limited and Hotspot FX Holdings, Inc. Knight Capital Group discontinued operations of its asset management segment in 2009 when its subsidiary, Deephaven Capital Management, sold most of its assets to Stark & Roth, LLC.
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Wikipedia