KCG Holdings, Inc. operates as an independent securities firm that offers clients a range of services designed to address trading needs across asset classes, product types and time zones. The company combines technology with specialized client service across market making, agency execution and trading venues and also engages in principal trading through exchange-based electronic market making. It has various access points to trade global equities, options, fixed income, currencies and commodities via voice or automated execution. Segments The company operates in three segments, including Market Making, Global Execution Services, and Corporate and Other. Market Making This segment principally consists of market making in the cash, futures and options markets across global equities, options, fixed income, currencies and commodities. As a market maker, the company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions. Principal trading in the Market Making segment primarily consists of direct-to-client and non-client exchange-based electronic market making, including trade executions conducted as an equities designated market maker on the New York Stock Exchange (NYSE) and NYSE Amex Equities (NYSE Amex). The company is an active participant on all major global equity and futures exchanges and it also trades on substantially all domestic electronic options exchanges. As a complement to electronic market making, its cash trading business handles specialized orders and also transacts on the OTC Bulletin Board marketplaces operated by the OTC Markets Group Inc. and the Alternative Investment Market of the London Stock Exchange. The majority of revenues for this segment are derived from direct-to-client electronic market making in U.S. equities. The company also provides trade executions as an equities DMM on the NYSE and NYSE Amex. The majority of market making activity is conducted on a principal basis through the use of automated quantitative models. In direct-to-client market making, the company derives revenues from the difference between the amount paid when securities are bought and the amount received when the securities are sold. Clients and Products: The company offers direct-to-client market making services across multiple asset classes primarily to sell-side clients including global, national and regional broker dealers and banks, as well as buy-side clients comprising, among others, mutual funds, pension plans, plan sponsors, hedge funds, trusts and endowments in North America, Europe and Asia. Global Execution Services This segment provides agency execution services and trading venues for agency-based, execution-only trading in global equities, fixed income, futures and options to institutions, banks and broker dealers. The company is an active participant on all major global equity, futures and options exchanges. The majority of revenues for this segment are derived from agency-based, execution-only trading encompassing algorithmic trading and order routing in global equities; institutional sales traders executing program, block and riskless principal trades in global equities and exchange traded funds; a fixed income electronic communication network (ECN) that also offers trading applications (KCG BondPoint); and an alternative trading system (ATS) for global equities (KCG MatchIt). Clients and Products: The company offers agency execution services and trading venues across multiple asset classes to buy-side clients including mutual funds, pension plans, plan sponsors, hedge funds, trusts and endowments and sell-side clients, including global, national and regional broker dealers and banks in North America, Europe and Asia. Through KCG Electronic Trading, the company offers electronic execution services in global equities, options, futures and commodities via algorithmic trading, order routing and an execution management system, as well as via internal crossing through its registered ATS. The company operates an ATS providing clients with an anonymous source of non-displayed liquidity. This segment also offers a range of products and services and voice access to the global markets, including sales and trading for equities, exchange traded funds and options. Additionally, it provides buy-side clients with liquidity, market insights, anonymity and trade executions with minimal market impact and offer trade execution services covering the depth and breadth of the market. It handles large complex trades, accessing liquidity from its order flow and other sources. The company also provides soft dollar and commission recapture programs. KCG BondPoint provides electronic fixed income trading solutions to sell-side firms through a fixed income ECN that serves as an electronic inter-dealer system and allows clients to access live and executable retail-sized offerings in corporate bonds, municipals, government agency, treasuries and certificates of deposits. KCG BondPoint also provides front-end applications for brokers and advisors, as well as a trading application for traders. Corporate and Other This segment contains investments principally in strategic financial services-oriented opportunities. Government Regulation Regulators in the U.S. and international jurisdictions continue to promulgate various rules and regulations that might impact its business. In the U.S., these regulatory bodies include the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, Financial Industry Regulatory Authority, Inc., National Futures Association, NYSE, NASDAQ, other self-regulatory organizations, and other regulatory bodies, such as state securities commissions and state attorneys general. In Europe and Asia, these regulatory bodies include, but are not limited to, the UK Financial Conduct Authority, the French Autorite des Marches Financiers, the Singapore Exchange, the Securities and Exchange Board of India, and the Australian Securities and Investment Commission. History KCG Holdings, Inc. was founded in 1999.
kcg holdings inc-cl a
(KCG:New York Consolidated)
545 Washington Boulevard
Jersey City, NJ 07310
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