KCG’s Market Making Volumes Unable to Break out of Narrow Consolidation

KCG's market making in 2017 has stuck to a narrow band, unable to break out of a tight consolidation.

Securities trading group KCG Holdings, Inc. (NYSE: KCG) has reported its monthly tranche of trading statistics for the month ending March 2017, which incurred a slight decline in its market making figures on a month-over-month basis, per a group filing.

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March 2017 finally featured activity across markets, with the US’ monetary policy helping shape the narrative for the month, resulting in a Federal Reserve rate hike. Additionally, volatility returned to markets, helping spark a tepid uptick in trading activity worldwide.

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During March 2017, KCG reported an average daily US equities market making figure of $26.3 billion traded, which was -6.1 percent lower on a month-over-month basis from $28.0 billion in February 2017. This trend was a departure from several other US and European institutional and retail exchanges during the month, the majority of which notched a steady growth in its volumes after a lackluster February.

Despite seeing a decline in its figures relative to the month prior, March 2017’s volumes were indicative of a small year-over-year move of 1.5 percent from the $25.9 billion set back in March 2016. KCG’s market making figures have been largely mixed during Q1, which clung to a rather tight consolidation.

KCG’s total average daily shares traded during March 2017 also yielded 3.31 million shares, down -4.1 percent month-over-month from 3.45 million shares back in February 2017. The change was exacerbated over a yearly timetable, as reflected by a move of -11.5 percent year-over-year from 3.74 million shares per day back in March 2016.

Finally, in terms of KCG’s equities business, the segment did not register any change on a monthly basis. More specifically, its consolidated US equity volume averaged $269.5 billion in dollar volume and 6.9 billion shares traded per day, compared with $271.8 billion in dollar volume and 6.9 billion shares per day, unchanged month-over-month.

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