Chairman and Chief Executive Officer Pasternak To Retire

                          From Knight Trading Group 
              Knight President & Chief Operating Officer Hajas Named 
                       Interim Chief Executive Officer 
                   Knight Director Doherty Elected New Chairman 
               Heidrick & Struggles Retained To Conduct CEO Search 

  JERSEY CITY, N.J., Dec. 18 /PRNewswire/ -- 
Knight Trading Group, Inc. (Nasdaq: NITE) today announced that Chairman and 
Chief Executive Officer Kenneth D. Pasternak will retire from his Chairman and 
CEO positions as of January 31, 2002.  He will serve out his remaining term as 
a Director, which expires at Knight's annual meeting in May 2002, and he will 
continue to act in a consulting capacity until his contract expiration on July 
8, 2002.  
Peter S. Hajas has been named interim CEO, effective February 1, 2002, 
while the search for a permanent CEO is underway.  Mr. Hajas has been 
responsible for the day-to-day operations of the Company since he was named 
President and Chief Operating Officer in July 2001.  Before that, Mr. Hajas 
was the CEO of Knight Financial Products, Knight Trading Group's options 
market-making business, where he leveraged its trading platform to improve 
operations, manage risk and profitably grow market share.  Mr. Hajas joined 
Knight in January 2000 upon completion of the Company's acquisition of 
Arbitrade Holdings LLC.  Before joining Arbitrade, Mr. Hajas gained experience 
building companies and growing businesses overseas at Swiss Bank Corporation, 
where most recently he was Managing Director of Global Fixed Income and 
Charles V. Doherty has been elected by Knight Trading Group's Board of 
Directors to serve as non-executive Chairman of the Board for Knight, 
effective February 1, 2002.  Mr. Doherty is a veteran Board member of Knight 
Trading Group and former President and Chief Operating Officer of the Chicago 
Stock Exchange.  He has served as a Director on Knight's Board since the 
Company's initial public offering in 1998.  As Chairman, Mr. Doherty will 
oversee the search for a new Knight CEO, for which the Company has retained 
leading executive search firm Heidrick & Struggles International, Inc.  
"We are grateful for Ken Pasternak's leadership and vision over the past 
six years," stated Mr. Doherty.  "Since the Company's founding in 1995, Ken's 
ability to lead the firm and our employees has been a driving force in 
Knight's rapid ascent to market leadership. Over the past year, in an orderly 
effort to support the growth and complexity of the business, the Company has 
appointed new leaders and added significant depth of management at the 
subsidiary operating level while augmenting the leadership team with Peter 
Hajas at the parent level.  The Board is confident in Peter's ability to lead 
Knight through this transition period, and the Company is well positioned for 
the next chapter in its growth cycle."  
Mr. Pasternak has decided to retire to explore elective and appointive 
opportunities for public service.  
"I have spent my entire career working within the framework of the capital 
markets," Mr. Pasternak said.  "I have enjoyed helping build this company, and 
have had the pleasure of forging relationships with our employees, clients and 
many friends in the financial services community.  Like many in this 
close-knit community, I have also felt the pain of losing some of those 
friends on September 11.  Over the past several years, I have devoted 
increasing amounts of time, resources and energy to help improve the 
communities where I grew up, and where I live and work.   With Knight's key 
operational management in place and our strong balance sheet, the Company is 
poised for the future.  The time is right for me to step down. Now I look 
forward to devoting all my energy to public service. I enjoyed good fortune 
and success during my career on Wall Street.  I intend to work just as hard to 
ensure the same result in public service."  
Knight is the liquidity center that offers superior execution services to 
its broker-dealer and institutional clients in over-the-counter (OTC) and 
listed equity securities, and in equity options.  In so doing, Knight helps 
its clients meet their fiduciary obligation of obtaining best execution for 
the securities orders that they route on behalf of their customers.  Knight 
also maintains an asset management business for institutional investors and 
high net worth individuals through Deephaven Capital Management LLC.  
Knight has the power to commit capital for market orders and also 
maintains one of the largest limit order books in the OTC market.  The Company 
has approximately 1,300 employees worldwide and is one of the largest 
destinations for stock orders placed via the Internet.  Knight traded 
112 billion shares in the year 2000, a volume behind only those posted by 
Nasdaq and the New York Stock Exchange (NYSE).  Ultimately, Knight plans to 
enable its clients to trade all types of equity securities and options at any 
time, from anywhere in the world.  More information about Knight can be 
obtained at  
The matters described herein contain forward-looking statements that are 
made pursuant to the Safe Harbor provisions of the Private Securities 
Litigation Reform Act of 1995.  Forward-looking statements involve a number of 
risks, uncertainties or other factors beyond the Company's control, which 
could cause actual results to differ materially from historical results, 
performance or other expectations and from any opinions or statements 
expressed with respect to future periods.  These factors include, but are not 
limited to, the Company's ability to implement its growth strategies, 
economic, political and market conditions and fluctuations, government and 
industry regulation, interest rate risk, intellectual property rights, and 
other factors detailed in the Company's registration statement and periodic 
reports filed with the Securities and Exchange Commission. 

SOURCE  Knight Trading Group, Inc.  
-0-                             12/18/2001  
/CONTACT:  Margaret Wyrwas, Senior Vice President, Corporate 
Communications & Investor Relations, +1-201-557-6954,, 
Kara Fitzsimmons, Manager, Corporate Communications, +1-201-356-1523,, Judy Pirro, Manager, Investor and Shareholder 
Relations, +1-201-356-1548, all of Knight Trading 
Group, Inc./  
/Web site:  
CO:  Knight Trading Group, Inc. 
ST:  New Jersey 
SU:  PER  
-0- Dec/18/2001 11:02 GMT
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