After announcing in the beginning of September its intentions to sell its Futures Commission Merchant, KCG Holdings Inc. (NYSE:KCG) has issued a company announcement outlining that the deal with Wedbush Securities has been concluded. Financial terms of the transaction remain undisclosed.
Restructuring efforts at the company have been ongoing for the past couple of months with the firm slashing its workforce by 4% in September in a move which followed the announcement.
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The surprise resignation of KCG Holdings’ Chief Financial Officer (CFO) Steven Bisgay was the culmination of a series of senior executive departures. The company’s Head of Corporate Strategy Richard Herr and Deputy General Council Andy Greenstein left around the time of the departure of Managing Director and Head of Sales at KCG Hotspot John Miesner, who left the foreign exchange arm at KCG after 14 years.
More recently, the company has announced that it is looking at strategic options for its foreign exchange business KCG Hotspot, with a rumored asking price totaling $300 million. Volumes at the FX arm of KCG Holdings (NYSE:KCG) have picked up materially in recent months as the volatility on the foreign exchange market rebounded.
As a result of the transaction, the composition of KCG Holdings’ (NYSE:KCG) balance sheet has been changed, with certain assets and corresponding liabilities, totalling approximately $680 million as of September 30, 2014, being removed from it.