KCG Holdings Revises Previously Issued Third Quarter Earnings Information To Reflect $128 Million Non-Cash Accounting Gain From

 KCG Holdings Revises Previously Issued Third Quarter Earnings Information To
   Reflect $128 Million Non-Cash Accounting Gain From GETCO's Investment In
                                    Knight

KCG Holdings also announces restatements of historical financial statements
for GETCO

PR Newswire

JERSEY CITY, N.J., Nov. 12, 2013

JERSEY CITY, N.J., Nov. 12, 2013 /PRNewswire/ --KCG Holdings, Inc. (NYSE:
KCG), the parent company formed as a result of the July 1, 2013 merger of
Knight Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC
("GETCO"), today announced a one-time, non-cash gain of $128.0 million in the
third quarter of 2013 as a result of GETCO's investment in Knight. Prior to
the merger, GETCO held the investment in Knight at fair value with gains
recorded in other comprehensive income within equity. At acquisition date,
GETCO reversed the cumulative gains in other comprehensive income and
recognized all gains from the investment in the income statement. KCG's
previously announced third quarter earnings did not reflect this accounting
gain.

As a result of the inclusion of this one-time, non-cash gain, KCG reported net
income of $226.8 million and diluted earnings per share of $1.98 for the three
months ended September 30, 2013 in its Form 10-Q dated November 12, 2013,
compared to net income of $98.9 million and diluted earnings per share of
$0.86 as originally reported in the third quarter earnings press release dated
October 30, 2013. The gain is included in investment income and other, net
within total revenues. Please refer to the exhibits contained herein for
revised financial schedules.

KCG also announced today that it has filed restated historical financial
statements of GETCO. The restatements of GETCO's financial statements are for
the years ended December 31, 2012, 2011 and 2010, the nine months ended
September 30, 2012 and September 30, 2011, the three and six months ended June
30, 2013 and June 30, 2012, and the three months ended March 31, 2013 and
March 31, 2012.

The restatements are due to errors in the presentation of GETCO members'
equity, earnings per unit and cash flows as well as an accounting charge for
certain non-cash, merger-related compensation. Accordingly, investors should
no longer rely upon previously issued financial statements of GETCO for the
relevant periods.

The restatement that related to the presentation of members' equity resulted
from the misclassification of certain equity interests as GETCO members'
equity. These interests were redeemable in certain circumstances outside the
control of GETCO and have been reclassified as mezzanine equity. The
correction impacted all relevant periods covered by GETCO historical results
prior to the merger close and resulted in reclassifications to Redeemable
preferred member's equity from members' equity of between $289.6 million and
$338.0 million. This classification error did not result in any changes in
reported net income or loss for any of the affected periods; however, the
reclassification did result in the restatement of earnings allocated to common
units for each such period and related earnings per unit disclosures.

The restatement that related to the presentation of cash flows resulted from
the misclassification of cash flows between operating and financing activities
related to unit award compensation and members'distributions. The correction
resulted in increases in cash used in operating activities of $71.2 million
for the nine months ended September 30, 2012, $9.8 million for the nine months
ended September 30, 2011 and $12.8 million for the year ended 2011, with
offsetting decreases in cash used in financing activities in each period.

The restatement that related to the reporting of certain non-cash compensation
in the first half of 2013 resulted from the accounting treatment of an
agreement by certain owners of GETCO units to accept a less favorable merger
conversion ratio for their units than the ratio to which they were
contractually entitled. The intended effect of the agreement increased the
merger conversion ratio of other owners, which included GETCO employees and
should have been classified as compensation expense. The correction resulted
in the realization of a non-cash, merger-related compensation charge of $7.1
million for the three and six months ended June 30, 2013, which increased
GETCO's net losses by an equivalent amount for the affected periods.

As a result of these restatements, KCG's management has concluded that there
were material weaknesses in GETCO's financial statement preparation processes
and the related disclosure controls for each of the affected periods.

With respect to the restatements, KCG is filing a Form 8-K today which
contains restated consolidated financial statements for the affected periods.
The KCG Form 10-Q being filed today includes KCG financial statements for the
three and nine months ended September 30, 2013, which reflect the $128 million
gain on investment.

To access the KCG Holdings, Inc. Form 10-Q and Form 8-K filings dated November
12, 2013, go to http://investors.kcg.com/phoenix.zhtml?c=105070&p=irol-sec.

About KCG
KCG is a leading independent securities firm offering clients a range of
services designed to address trading needs across asset classes, product types
and time zones. The firm combines advanced technology with exceptional client
service across market making, agency execution and trading venues. KCG has
multiple access points to trade global equities, fixed income, currencies and
commodities via voice or automated execution. www.kcg.com

Certain statements contained herein may constitute "forward-looking
statements" within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking statements
are typically identified by words such as "believe," "expect," "anticipate,"
"intend," "target," "estimate," "continue," "positions," "prospects" or
"potential," by future conditional verbs such as "will," "would," "should,"
"could" or "may," or by variations of such words or by similar expressions.
These "forward-looking statements" are not historical facts and are based on
current expectations, estimates and projections about KCG's industry,
management beliefs and certain assumptions made by management, many of which,
by their nature, are inherently uncertain and beyond our control. Any
forward-looking statement contained herein speaks only as of the date on which
it is made. We undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to time,
whether as a result of new information, future developments or otherwise.
Accordingly, readers are cautioned that any such forward-looking statements
are not guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict including, without
limitation, risks associated with: (i) the strategic combination of Knight
Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC ("GETCO"),
including, among other things, (a) difficulties and delays in integrating the
Knight and GETCO businesses or fully realizing cost savings and other
benefits, (b) the inability to sustain revenue and earnings growth, and (c)
customer and client reactions; (ii) the August 1, 2012 technology issue that
resulted in Knight's broker-dealer subsidiary sending numerous erroneous
orders in NYSE-listed and NYSE Arca securities into the market and the impact
to Knight's capital structure and business as well as actions taken in
response thereto and consequences thereof; (iii) the costs and risks
associated with the sale of Knight's institutional fixed income sales and
trading business, the pending sale of KCG's reverse mortgage origination and
securitization business and the departure of the managers of KCG's listed
derivatives group; (iv) the ability of KCG's broker-dealer subsidiary to
recover all or a portion of the damages that are attributable to the manner in
which NASDAQ OMX handled the Facebook IPO; (v) changes in market structure,
legislative, regulatory or financial reporting rules, including the continuing
legislative and regulatory scrutiny of high-frequency trading; (vi) past or
future changes to organizational structure and management; (vii) KCG's ability
to develop competitive new products and services in a timely manner and the
acceptance of such products and services by KCG's customers and potential
customers; (viii) KCG's ability to keep up with technological changes; (ix)
KCG's ability to effectively identify and manage market risk, operational
risk, legal risk, liquidity risk, reputational risk, counterparty risk,
international risk, regulatory risk, and compliance risk; (x) the cost and
other effects of material contingencies, including litigation contingencies,
and any adverse judicial, administrative or arbitral rulings or proceedings;
and (xi) the effects of increased competition and KCG's ability to maintain
and expand market share. The list above is not exhaustive.Readers should
carefully review the risks and uncertainties disclosed in KCG's and Knight's
reports with the SEC, including, without limitation, those detailed under
"Certain Factors Affecting Results of Operations" in KCG's Quarterly Report on
Form 10-Q for the period ended September 30, 2013, under "Risk Factors" in
Knight's Annual Report on Form 10-K for the year-ended December 31, 2012 and
the Current Report on Form 8-K filed by KCG on August 9, 2013, and in other
reports or documents KCG files with, or furnishes to, the SEC from time to
time.

CONTACTS

Sophie Sohn                Jonathan Mairs
Communications & Marketing Investor Relations
312-931-2299               201-356-1529
media@kcg.com              jmairs@kcg.com



KCG HOLDINGS, INC.                                                    EXHIBIT
                                                                      1
CONSOLIDATED STATEMENTS OF OPERATIONS^(1)
(Unaudited)
                        For the three months ended  For the nine months ended
                        September 30,              September 30,
                           2013            2012        2013           2012
                        (In thousands, except per share amounts)
Revenues
  Trading revenues, net $  230,471      $  92,556   $  415,495      $ 333,737
  Commissions and fees     109,079         25,542      164,391        79,487
  Interest, net            (177)           (781)       (970)          (1,998)
  Investment income and    128,446         13,285      119,207        14,015
  other, net
        Total revenues     467,819         130,602     698,123        425,241
Expenses
  Employee compensation    129,631         31,875      236,983        111,395
  and benefits
  Execution and            81,023          42,267      167,931        144,656
  clearance fees
  Communications and       44,046          21,681      86,040         67,380
  data processing
  Interest                23,870          706         26,515         2,002
  Depreciation and         20,091          7,574       36,004         27,180
  amortization
  Payments for order       16,431          717         17,468         2,128
  flow
  Professional fees        9,077           2,575       38,928         7,690
  Occupancy and            8,898           3,240       15,454         8,865
  equipment rentals
  Business development     2,644           6           2,686          19
  Writedown of assets
  and lease loss           936             -           4,248          -
  accrual
  Other                    11,318          5,349       30,028         19,002
        Total expenses     347,965         115,990     662,285        390,317
Income from continuing
operations before          119,854         14,612      35,838         34,924
income taxes
Income tax (benefit)       (107,767)       4,805       (102,478)      10,368
expense
Income from continuing     227,621         9,807       138,316        24,556
operations, net of tax
Loss from discontinued     (784)           -           (784)          -
operations, net of tax
Net income              $  226,837      $  9,807    $  137,532      $ 24,556
Basic earnings per
share from continuing   $  1.99         $  0.21     $  2.02         $ 0.49
operations
Diluted earnings per
share from continuing   $  1.98         $  0.21     $  2.01         $ 0.49
operations
Basic loss per share
from discontinued       $  (0.01)       $  -        $  (0.01)       $ -
operations
Diluted loss per share
from discontinued       $  (0.01)       $  -        $  (0.01)       $ -
operations
Basic earnings per      $  1.99         $  0.21     $  2.00         $ 0.49
share
Diluted earnings per    $  1.98         $  0.21     $  2.00         $ 0.49
share
Shares used in
computation of basic       114,113         46,411      68,632         49,619
earnings (loss) per
share
Shares used in
computation of diluted     114,773         46,411      68,855         49,619
earnings (loss) per
share

     Third quarter 2013 includes the results of KCG Holdings, Inc . Year to
     date 2013 includes three months of results of KCG Holdings, Inc. plus six
     months

^(1) ofGETCO Holding Company, LLC. All of 2012 reflect the results of GETCO
     Holding Company, LLC. Certain reclassifications have been made to the
     prior

     periodsConsolidated Statements of Operations to conform to current
     presentation.



KCG HOLDINGS, INC.                                                EXHIBIT 2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
                                            September 30, 2013    December 31,
                                                                  2012^(1)
                                                                  (Restated)
                                            (In thousands)
ASSETS
 Cash and cash equivalents                $ 798,712             $ 427,631
 Cash and securities segregated under       216,442               -
 federal and other regulations
 Financial instruments owned, at fair
 value:
      Equities                              2,156,466             378,933
      Listed options                        288,227               92,305
      Debt securities                       79,284                183,637
 Total financial instruments owned, at      2,523,977             654,875
 fair value
 Collateralized agreements:
      Securities borrowed                  1,370,921             52,261
 Receivable from brokers, dealers and       1,330,113             142,969
 clearing organizations
 Fixed assets and leasehold
 improvements,
  less accumulated             161,865               83,341
 depreciation and amortization
 Investments                                125,889               248,438
 Goodwill                                   18,398                4,645
 Intangible assets, less accumulated        192,045               46,123
 amortization
 Deferred tax asset                         169,619               4,180
 Assets within discontinued operations     6,098,299             -
 Other assets                               287,015               23,073
Total assets                              $ 13,293,295          $ 1,687,536
LIABILITIES, REDEEMABLE PREFERRED
MEMBER'S EQUITY AND EQUITY
Liabilities
 Financial instruments sold, not yet
 purchased, at fair value:
      Equities                            $ 1,848,728           $ 423,740
      Listed options                        229,722               69,757
      Debt securities                       79,057                19,056
      Other financial instruments           5,431                 -
 Total financial instruments sold, not      2,162,938             512,553
 yet purchased, at fair value
  Collateralized financings:
      Securities loaned                   543,451               -
      Financial instruments sold under      595,029               -
      agreements to repurchase
 Total collateralized financings           1,138,480             -
 Payable to brokers, dealers and            666,178               24,185
 clearing organizations
 Payable to customers                       486,136               -
 Accrued compensation expense               130,158               27,728
 Accrued expenses and other liabilities     220,648               118,068
 Capital lease obligations                  12,453                24,191
 Liabilities within discontinued            6,006,024             -
 operations
 Short-term debt                           235,000               -
 Long-term debt                            722,259               15,000
Total liabilities                           11,780,274            721,725
Redeemable preferred member's equity       -                     311,139
Equity
 Members' equity                            -                     654,672
 Class A common stock                       1,235                 -
 Additional paid-in capital                 1,299,907             -
 Retained earnings                          226,837               -
 Treasury stock, at cost                    (9,811)               -
 Accumulated other comprehensive loss      (5,147)               -
Total equity                                1,513,021             654,672
Total liabilities, redeemable preferred   $ 13,293,295          $ 1,687,536
member's equity and equity

     GETCO Holding Company, LLC. - Certain reclassifications have been made to
     the prior period Consolidated Statement of Financial Condition to conform
^(1) to

     current presentation.



KCG HOLDINGS, INC.                                                  EXHIBIT 3
PRE-TAX EARNINGS FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT*
(In thousands)
(Unaudited)
                        For the three months ended   For the nine months ended

                        September 30,                September 30,
                            2013           2012         2013        2012
Market Making
Revenues                $   240,110     $  107,672   $  455,678   $ 383,203
Expenses                    192,257        99,458       400,070     345,227
Pre-tax earnings            47,853         8,214        55,608      37,976
Global Execution
Services
Revenues                    91,366         9,258        113,701     27,248
Expenses                    107,720        10,378       134,949     31,087
Pre-tax loss                (16,354)       (1,120)      (21,248)    (3,839)
Corporate and Other
Revenues                    136,343        13,672       128,744     14,790
Expenses                    47,988         6,154        127,266     14,003
Pre-tax earnings            88,355         7,518        1,478       787
Consolidated
Revenues                    467,819        130,602      698,123     425,241
Expenses                    347,965        115,990      662,285     390,317
Pre-tax earnings        $   119,854     $  14,612    $  35,838    $ 34,924

* Totals may not add due to rounding.
Third quarter 2013 includes the results of KCG Holdings, Inc. Year to date
2013 includes three months of results of

KCGHoldings, Inc. plus six months of GETCO Holding Company, LLC. All of 2012
reflect the results of GETCO Holding

Company, LLC.



KCG HOLDINGS, INC.                                               EXHIBIT 4
Regulation G Reconciliation of Non-GAAP financial measures (Continuing
operations)^(1)
(in thousands)
Three months ended          Market     Global       Corporate
September 30, 2013          Making     Execution    and Other    Consolidated
                                       Services
Reconciliation of GAAP
Pre-Tax to Non-GAAP
Pre-Tax:
GAAP Income (Loss) from    $      $       $       $     
continuing operations                (16,354)     88,355    119,854
before income taxes         47,853
Gain on investment in       -          -            (127,972)    (127,972)
Knight Capital Group, Inc.
Compensation and other
expenses related to         2,309      15,132       -            17,441
reduction in workforce
Professional and other
fees related to Mergers     -          -            7,269        7,269
and August 1st technology
issue
Writedown of assets and     108        -            828          936
lease loss accrual
Non GAAP Income (Loss)      $      $       $       $      
from continuing operations            (1,222)   (31,520)    17,528
before income taxes         50,270
Nine months ended           Market     Global       Corporate
September 30, 2013          Making     Execution    and Other    Consolidated
                                       Services
Reconciliation of GAAP
Pre-Tax to Non-GAAP
Pre-Tax:
GAAP Income (Loss) from    $      $       $       $      
continuing operations                (21,248)      1,478   35,838
before income taxes         55,608
Gain on investment in       -          -            (127,972)    (127,972)
Knight Capital Group, Inc.
Professional and other
fees related to Mergers     -          -            44,398       44,398
and August 1st technology
issue
Compensation and other
expenses related to         6,264      15,997       -            22,261
reduction in workforce
Unit acceleration due to    -          -            22,031       22,031
Mergers
Strategic asset impairment  -          -            9,184        9,184
Writedown of assets and     108        -            4,525        4,633
lease loss accrual
Non GAAP Income (Loss)      $      $       $       $      
from continuing operations            (5,251)   (46,356)    10,373
before income taxes         61,980
                                       

Three months ended          Market                 Corporate
September 30, 2012          Making                  and Other    Consolidated
                                       Global
                                       Execution
                                       Services
Reconciliation of GAAP
Pre-Tax to Non-GAAP
Pre-Tax:
GAAP Income (Loss) from    $      $       $       $      
continuing operations                (1,120)     7,518   14,612
before income taxes         8,214
Investment gain             -          -            (11,354)     (11,354)
Non GAAP Income (Loss)     $      $       $       $      
from continuing operations           (1,120)    (3,836)    3,258
before income taxes         8,214
Nine months ended           Market     Global       Corporate
September 30, 2012          Making     Execution    and Other    Consolidated
                                       Services
Reconciliation of GAAP
Pre-Tax to Non-GAAP
Pre-Tax:
GAAP Income (Loss) from    $      $       $       $      
continuing operations                 (3,839)       787  34,924
before income taxes         37,976
Investment gain             -          -            (11,354)     (11,354)
Non GAAP Income (Loss)     $      $       $       $      
from continuing operations            (3,839)   (10,567)    23,570
before income taxes         37,976



* Totals may not add due to rounding
    Third quarter 2013 includes the results of KCG Holdings, Inc. Year to date
    2013 includes three months of results of KCG Holdings, Inc. plus six
(1) months of GETCO Holding

    Company, LLC. All of 2012 reflect the results of GETCO Holding Company,
    LLC.









SOURCE KCG Holdings, Inc.

Website: http://www.kcg.com