Knight Plans to Keep Futures Brokerage After Merger With GetcoLu Wang
Knight Capital Group Inc., the market maker that’s being acquired by Getco LLC, plans to keep its futures brokerage.
The unit will continue to provide futures execution, clearing and custody services, according to a March 6 letter to clients from Thomas M. Joyce, Knight’s chairman and chief executive officer, and Carl Gilmore, who heads the futures group.
“We would like to reiterate our commitment to our futures customers and our futures clearing and custody efforts,” Joyce and Gilmore said in the letter, which was published on the company’s website. “Knight Futures is an important part of our initiative.”
The Jersey City, New Jersey-based firm agreed in December to be purchased by Getco in a $1.4 billion deal, ending Knight’s 17 years of independence. Getco was among six financial firms that bailed out Knight in August, after trading glitches caused more than $450 million in losses and brought the company to the brink of bankruptcy.
Knight plans to sell its debt-brokerage unit to Stifel Financial Corp., seven people with knowledge of the matter said in February. The firm intends to retain BondPoint, an electronic trading system for corporate, municipal and government debt, one of the people said at that time.