KCG to Sell Futures Commission Merchant Business to Wedbush Securities for Undisclosed Sum
- CEO: "The transaction not only reduces and simplifies KCG's balance sheet, it also allows us to focus additional resources and energy on our primary businesses of market making, agency execution and trading venues."
KCG Holdings announced today that it has entered into a definitive agreement to sell certain assets and liabilities related to its Futures Commission Merchant (KCG Futures) business to Wedbush Securities Inc. The terms of the transaction were not disclosed. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by year end.
A division of KCG Americas LLC, KCG Futures, provides futures Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and custody services. KCG Futures facilitates futures and commodities transactions among brokers, institutions, market professionals and non-clearing FCMs on major US and international futures and options exchanges, as well as FX clearing.
Inc. is a privately held financial services and investment firm that provides private and institutional brokerage, investment banking, equity research, fixed income, public finance, correspondent clearing and asset management to individual, institutional and issuing clients.
"KCG Futures is a leading independent futures broker and has maintained a solid reputation for high-quality client service," said Daniel Coleman, CEO of KCG. "This transaction is a positive development for everyone involved. KCG Futures will join the Wedbush team, where it can further position itself as a leader in the marketplace, allowing Wedbush to expand its futures clearing and execution services. The transaction not only reduces and simplifies KCG's balance sheet, it also allows us to focus additional resources and energy on our primary businesses of market-making, agency execution and trading venues."
Closely following the transaction, KCG says it will continue to engage in futures market-making. It is anticipated that the existing KCG staff, comprised of approximately 45 professionals in the US, will continue in their current roles and client contacts will remain the same. KCG was advised on the transaction by the law firm Sullivan & Cromwell LLP.
KCG Holdings announced today that it has entered into a definitive agreement to sell certain assets and liabilities related to its Futures Commission Merchant (KCG Futures) business to Wedbush Securities Inc. The terms of the transaction were not disclosed. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by year end.
A division of KCG Americas LLC, KCG Futures, provides futures Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and custody services. KCG Futures facilitates futures and commodities transactions among brokers, institutions, market professionals and non-clearing FCMs on major US and international futures and options exchanges, as well as FX clearing.
Inc. is a privately held financial services and investment firm that provides private and institutional brokerage, investment banking, equity research, fixed income, public finance, correspondent clearing and asset management to individual, institutional and issuing clients.
"KCG Futures is a leading independent futures broker and has maintained a solid reputation for high-quality client service," said Daniel Coleman, CEO of KCG. "This transaction is a positive development for everyone involved. KCG Futures will join the Wedbush team, where it can further position itself as a leader in the marketplace, allowing Wedbush to expand its futures clearing and execution services. The transaction not only reduces and simplifies KCG's balance sheet, it also allows us to focus additional resources and energy on our primary businesses of market-making, agency execution and trading venues."
Closely following the transaction, KCG says it will continue to engage in futures market-making. It is anticipated that the existing KCG staff, comprised of approximately 45 professionals in the US, will continue in their current roles and client contacts will remain the same. KCG was advised on the transaction by the law firm Sullivan & Cromwell LLP.