GETCO and Knight Capital Group Combine NYSE Designated Market Maker Units
Follows shareholder approval of the merger between GETCO and Knight Capital Group -
New York, - GETCO Holding Company LLC (GETCO) and Knight Capital Group Inc. (Knight) (NYSE:KCG), which earlier this week announced shareholder approval of the merger that will form KCG Holdings, Inc., today announced the combination of each firm’s Designated Market Maker (DMM) units. Effective July 2, 2013, the listed securities of the New York Stock Exchange (NYSE) and NYSE MKT DMM units of Knight and GETCO will trade through one broker-dealer, Knight Capital Americas LLC.
Together, the DMM units will have responsibility for approximately 1551 NYSE and NYSE MKT listed securities, making the firm the largest DMM by number of DMM assignments. Ultimately, the Knight and GETCO DMM units will be combined into a single unit. The transition is expected to be completed by the end of July.
“Our first priority is to ensure the seamless integration of Knight and GETCO’s Designated Market Maker Units, while maintaining the superior client service and in-depth market intelligence our listed companies have come to expect,” said Todd Abrahall, Managing Director of GETCO’s DMM Unit. “We look forward to leveraging the enhanced capabilities of our combined floor operations after the integration is complete.”
“Our listed issuers and investors will be very well served by this transaction, which brings together two exceptional DMM units to form one unit that is very well positioned to serve customers across a wide range of sectors and geographies,” said Joseph Mecane, EVP & Head of U.S. Equities at NYSE Euronext. “The combined DMM has extensive market-making expertise, a strong track record of technology innovation and exceptional relationships with our issuers. We look forward to working with both Knight and GETCO to ensure a smooth and effective transition.”
The DMM unit of Knight is responsible for approximately 512 NYSE and 139 NYSE MKT-listed securities. The DMM unit of GETCO serves approximately 900 NYSE-listed securities. Knight will maintain its current order handling protocols for the Exchange Traded Funds trading businesses following the close of the transaction.
DMMs are accountable for maintaining a fair and orderly market for NYSE and NYSE MKT-listed securities via physical and electronic auctions. DMMs facilitate price discovery and act as dedicated liquidity providers, which results in tighter quoted spreads, deeper markets and greater price stabilization for the securities they service.
DMMs are required to meet stringent depth and continuity standards. For more information, go to: http://usequities.nyx.com/listings/dmms.
About NYSE Euronext:
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company’s exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext’s equities markets - the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca - represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the Fortune 500. For more information, please visit: www.nyx.com.
Founded in 1999, GETCO is a leading global market maker with over 400 Associates located in
Chicago, New York, Palo Alto, London, Singapore and Hong Kong. The firm’s primary business involves both buying and selling securities to provide two-sided markets on exchanges around the world. The liquidity GETCO supplies allows investors to immediately transfer securities positions while saving money on trading costs. In addition, the firm provides customers with algorithmic, routing and execution services through its client services arm, GETCO Execution Services.
Knight Capital Group (NYSE Euronext: KCG) is a global financial services firm that provides access to the capital markets across multiple asset classes to a broad network of clients, including broker-dealers, institutions and corporations. Knight is headquartered in Jersey City, N.J. with a global presence across the Americas, Europe, and the Asia Pacific regions. For further information about Knight, please visit www.knight.com.
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