KCG ANNOUNCES AGREEMENT TO SELL FUTURES COMMISSION MERCHANT BUSINESS TO WEDBUSH SECURITIES
KCG ANNOUNCES AGREEMENT TO SELL FUTURES COMMISSION MERCHANT BUSINESS
TO WEDBUSH SECURITIES
JERSEY CITY, New Jersey - September 8, 2014 - KCG Holdings, Inc. (KCG) today announced it has entered into a definitive agreement to sell certain assets and liabilities related to the Futures Commission Merchant (KCG Futures) business to Wedbush Securities Inc. Terms of the transaction were not disclosed. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by year end.
A division of KCG Americas LLC, KCG Futures provides futures execution, clearing and custody services.
KCG Futures facilitates futures and commodities transactions among brokers, institutions, market professionals and non-clearing FCMs on major U.S. and international futures and options exchanges as well as FX clearing.
It is anticipated the existing KCG staff, comprised of approximately 45 professionals in the U.S., will continue in their current roles and client contacts will remain the same.
"KCG Futures is a leading independent futures broker and has maintained a solid reputation for high-quality client service," said Daniel Coleman of KCG. "This transaction is a positive development for everyone involved. KCG Futures will join the Wedbush team, where it can further position itself as a leader in the marketplace, allowing Wedbush to expand its futures clearing and execution services. The transaction not only reduces and simplifies KCG`s balance sheet, it also allows us to focus additional resources and energy on our primary businesses of market making, agency execution and trading venues."
Following the transaction close, KCG will continue to engage in futures market making.
KCG was advised on the transaction by Sullivan & Cromwell LLP.
About KCG
KCG is a leading independent securities firm offering investors and clients a range of services designed to address trading needs across asset classes, product types and time zones. The firm combines advanced technology with exceptional client service across market making, agency execution and venues. KCG has multiple access points to trade global equities, fixed income, currencies and commodities via voice or automated execution. www.kcg.com
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may," or by variations of such words or by similar expressions. These "forward-looking statements" are not historical facts and are based on current expectations, estimates and projections about KCG`s industry, management`s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Any forward-looking statement contained herein speaks only as of the date on which it is made. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with: (i) the strategic business combination (the "Mergers") of Knight Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC ("GETCO"), including, among other things, (a) difficulties and delays in integrating the Knight and GETCO businesses or fully realizing cost savings and other benefits, (b) the inability to sustain revenue and earnings growth, and (c) customer and client reactions to the Mergers; (ii) the August 1, 2012 technology issue that resulted in Knight`s broker-dealer subsidiary sending numerous erroneous orders in NYSE-listed and NYSE Arca securities into the market and the impact to Knight`s business as well as actions taken in response thereto and consequences thereof; (iii) the sale of KCG`s reverse mortgage origination and securitization business and the departure of the managers of KCG`s listed derivatives group; (iv) changes in market structure, legislative, regulatory or financial reporting rules, including the increased focus by regulators, the New York Attorney General, Congress and the media on market structure issues, and in particular, the scrutiny of high frequency trading, ATS manner of operations, market fragmentation, colocation, access to market data feeds, and remuneration arrangements such as payment for order flow and exchange fee structures; (v) past or future changes to organizational structure and management; (vi) KCG`s ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by KCG`s customers and potential customers; (vii) KCG`s ability to keep up with technological changes; (viii) KCG`s ability to effectively identify and manage market risk, operational and technology risk, legal risk, liquidity risk, reputational risk, counterparty and credit risk, international risk, regulatory risk, and compliance risk; (ix) the cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings; and (x) the effects of increased competition and KCG`s ability to maintain and expand market share. The list above is not exhaustive. Readers should carefully review the risks and uncertainties disclosed in KCG`s reports with the SEC, including, without limitation, those detailed under "Risk Factors" in KCG`s Annual Report on Form 10-K for the year-ended December 31, 2013, under "Certain Factors Affecting Results of Operations" in KCG`s Quarterly Report on Form 10-Q for the period ended June 30, 2014, and other reports or documents KCG files with, or furnishes to, the SEC from time to time.
CONTACTS
Sophie Sohn | Jonathan Mairs |
Communications & Marketing | Investor Relations |
312-931-2299 | 201-356-1529 |
media@kcg.com | jmairs@kcg.com |
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KCG Holdings, Inc. via GlobeNewswire
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