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- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
- Senior Exec in Citigroup's Equities Unit Has Left
- Prudential Plotting its Escape From Fed's Tough Oversight
- Why CEOs Spurned Trump's Business Councils, in Their Own Words
- A Stockbroker, Her LLC, and Her Customers' Loans (Or Investment?) - Bill Singer
- Brian Quintenz Sworn In as CFTC Commissioner
- A Gary Cohn Resignation Would 'Crash the Markets' – Mgmt Guru Jeffrey Sonnenfeld
- Trading Firm DRW to Buy RGM Advisors - As Low Volatility Forces Out Weak HFT Players (subsc reqd)
- Reputational Damage - Rajat Gupta on Hard Road to Recovery
- 7th Circuit Affirms Spoofing Conviction - Bill Singer
- Wells Fargo Announces Board Changes
- Judge Rules Against Ex-Goldman Employee in Fed Leak Case
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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.