Hints and tips:
...The KCG directors, Jefferies and other defendants deny wrongdoing....
...Having bought its DMM business from rival trader KCG in 2016, Citadel Securities oversees trading in 1,450 NYSE-listed securities, with 40 of them in Mr Giacchi’s hands....
...A move on ITG would come after Virtu in 2017 agreed to buy high-frequency trading rival KCG holdings in $1.4bn deal that turned it into one of the biggest participants in the US equity market....
...The deal comes just over a year after Virtu agreed to buy high-frequency trading rival KCG holdings in $1.4bn deal that turned it into one of the biggest participants in the US equity market....
...Virtu has been closing offices and business lines, and shedding hundreds of jobs, after the KCG deal....
...Virtu’s CEO Doug Cifu said: The integration of Virtu and KCG is going extraordinarily well....
...Virtu this year purchased KCG for about $1.4bn in a deal that gave it about a 20 per cent share of US stock trades....
...Rich Handler, chairman and chief executive, noted that results for the same period a year earlier were flattered by a gain on the sale of the bank’s investment in KCG Holdings, the market-maker bailed out...
...As of Virtu’s second quarter earnings release in August, Virtu had shut KCG’s proprietary business in London and slashed headcount by a third....
...Virtu Financial paid $1.4bn for KCG Holdings, DRW Holdings bought RGM Advisors, Teza Technologies sold its high-speed trading business to Quantlab Financial in March and in January, Hudson River Trading...
...The weak numbers offset news of the heavy cost-cutting Virtu has embarked on following the $1.4bn purchase of rival KCG Holdings....
...The numbers included a first full quarterly contribution from KCG Holdings, a rival that it bought for $1.4bn last summer....
...Financial Times: You agreed a transformative acquisition this year buying KCG. What is the logic behind the deal?...
...But many of KCG senior executives have left in recent weeks, such as Philip Allison, head of KCG Europe, and Rob Crane, head of European client execution....
...Virtu said that it would use the proceeds to pay back part of an outstanding loan from the KCG acquisition....
...KCG declined comment....
...The FT reported last week that Virtu was closing KCG’s London proprietary trading business....
...“On August 24 we went to capital limits at KCG effectively dampening volatility… Our backs were against the wall.”...
...The money comes in little bips on every order that goes through exchanges and companies such as Citadel Execution Services, KCG, UBS Securities or Two Sigma, which execute the buy or sell orders directed...
...Virtu acquired BondPoint as part of its takeover of KCG Holdings earlier this year, but it has quickly moved to offload the platform as it seeks to streamline the business....
...Last year it was expected to total just over $500m, according to S&P Capital IQ, even after it acquired fellow HFT pioneer KCG Holdings in a $1.4bn deal....
...Virtu predicts cost savings of $208m, net of pre-tax expenses, and will use the $440m of capital on KCG’s balance sheet....
...KCG and Virtu declined to comment....
...KCG will have to engage Virtu in discussions. If not, Mr Viola, along with KCG shareholders, will be upset. Email the Lex team at lex@ft.com...
...KCG confirmed late on Wednesday that it received an unsolicited offer from Virtu to acquire the company for $18.50 – $20 a share in cash. KCG said its board is reviewing the proposal....
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