Knight Capital Group

From MarketsWiki

Knight Capital Group
Founded	1995
Headquarters	Jersey City, NJ
Key People	CEO and Chairman Thomas M. Joyce
Products	Asset management and brokerage
Web site	http://www.knight.com/

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Knight Capital Group (KCG) offers trade execution to broker-dealers and institutional investors across all capital markets and owns a majority stake in hedge fund manager Deephaven Holdings. KCG recently beat Wall Street earnings estimates in volatile markets despite several recent losses in asset management.

History

Knight Capital Group was launched in 1995 as Knight/Trimark Group as a trade execution provider serving global national and regional broker-dealers, online brokers, funds, trusts and endowments.^[1] The firm began trading on the NASDAQ exchange in 1998, changed its name two years later to Knight Trading Group and then again to Knight Capital Group in 2005.^[2] Its global markets (trade execution) division has headquarters in Jersey City, NJ and offices in 11 other U.S. cities plus London and Singapore, while its asset management (Deephaven) division is headquartered in Minnetonka, MN with offices in Hong Kong and London.

Products and Services

KCG's Global Markets trade-execution business segment, its best performer, operates as six main subsidiaries:

• Direct Trading Institutional
• Hotspot FX
• Knight Capital Markets
• Knight Equity Markets
• Knight Equity Markets International
• Knight BondPoint

KCG's asset-management partner, Deephaven Capital Management, manages the Deephaven Market Neutral Funds.^[3]

Key People

Chairman and Chief Executive Officer Thomas M. Joyce^[4] has almost 30 years of experience in the securities industry and joined Knight Trading Group (KTG) as CEO and President in May 2002. Joyce served as president of KTG until January 2005 after being appointed chairman in December 2004, and has also served as head of brokerage operations since June 2005. Prior to joining Knight he was briefly global head of trading with Sanford C. Bernstein & Co. after a 15-year stint with Merrill Lynch, where he last served as global head of equity e-commerce from 1999 until 2001. Joyce has served previously on the board of directors of NASDAQ and is currently a director of the Securities Industry and Financial Markets Assocation (SIFMA) and ReFlow Management Co. His annual salary is $750,000 but his total annual compensation, including stock awards and options, is estimated at around $8.4 million.^[5]

Latest news

KCG's Q1 2008 results beat analysts' expectations after its global markets division boosted year-on-year revenue by 27 percent to $218.8 million, assisted by market volatility, while its asset management division made a pre-tax loss of $4.1 million.^[6] KCG repeated in Q2 with revenue of $219 million, up more than eight percent, with global markets notching an 18 percent rise in revenue to $201.3 million although asset management posted another pre-tax loss, this time of $7.9 million.^[7]

References

1. ↑ Knight Capital Group Inc. (NITE). Yahoo Finance. Retrieved on August 20, 2008.
2. ↑ About Knight. Knight Capital Group. Retrieved on August 20, 2008.
3. ↑ Careers at Deephaven. Deephaven Capital Management. Retrieved on August 20, 2008.
4. ↑ Thomas M. Joyce, Chairman & Chief Executive Officer. Knight Capital Group. Retrieved on August 20, 2008.
5. ↑ Thomas M Joyce. Forbes. Retrieved on August 20, 2008.
6. ↑ Knight Capital Q1 profit beats Street, boosts shares. Reuters. Retrieved on August 20, 2008.
7. ↑ Knight Capital Group Announces Earnings of $0.32 Per Diluted Share for the Second Quarter 2008. Knight Capital Group. Retrieved on August 20, 2008.