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- SEC Appoints New Chair and Board Members to PCAOB
- FINRA, Georgetown Team Up to Deliver 'Certified Regulatory and Compliance Professional' Program
- FINRA Board Meeting - This Week's Agenda
- Statement on Cryptocurrencies and Initial Coin Offerings - SEC Chair Clayton
- Company Halts Initial Coin Offering Over SEC Registration Concerns
- Kevin O'Leary Explains One Big Thing People Don't Understand About Bitcoin (But Need To)
- CME Bitcoin Futures: A Better Way to Buy (or Short) Bitcoin?
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
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NEWSLETTERS & ALERTS
KCG Holdings and Virtu Financial Agree to Merge
After a month of negotiations, KCG Holdings has agreed to be acquired by Virtu Financial for $20 a share, or $1.4 billion. Virtu’s initial offer was $18 a share, or $1.2 billion. [See Financialish, 3/15/17] The combined company will be led by Virtu Financial CEO Doug Cifu.
While the deal comes at a time when high-frequency trading, or HFT, firms are under significant pressure due to low volatility in the markets, Virtu CEO Doug Cifu has this to say:
"KCG fits perfectly with Virtu's strategic priorities to apply our market making and technological expertise to customer wholesale order flow and expand Virtu's growing agency execution business."
KCG Holdings was formed in December 2012 from the merger of New Jersey-based Knight Capital Group — a pioneer of electronic market making — and Chicago-based Getco.
Virtu Financial makes markets in 36 countries and 12,000 financial instruments, continuously quoting buy and sell prices for others to trade against, profiting off the bid-offer spread, using HFT strategies.
DEALMAKERS. According to CNBC, the deal will be financed through stock sale worth $750 million to private equity firm North Island and Temasek (state-owned Singapore investment company) and borrowings of $1.65 billion from JPMorgan Securities. Bob Greifeld and Glenn Hutchins, principals at North Island, will join the board after the deal. JPMorgan Securities advised Virtu on the deal, while Goldman Sachs advised KCG.