BROWSE BY TOPIC
Stories of Interest
- This Family Bet It All on Bitcoin
- Clearinghouses Pass CFTC Liquidity Stress Tests
- President Trump Admits He’s Trying to Kill Obamacare. That’s Illegal.
- Trump Plunges Down List of ‘America’s Richest’
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
- BigLaw Hogan Lovells Announces Hundreds of Buyouts, Layoffs - Almost 500 Affected
- Faith-Based Advisor Censured for Selling Class A Shares to Clergy
- After FINRA Bar, CFP Board Suspends Texas Advisor
- iCapital Network to Acquire U.S. Private Equity Access Fund Platform from Deutsche Bank
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
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.