Equiduct Partners With Knight

Expanding the Platform's Capabilities With Strategic Investment

Jun 08, 2010, 05:00 ET from Knight Capital Group, Inc.

JERSEY CITY, N.J. and LONDON, June 8 /PRNewswire/ -- Knight Capital Group, Inc. (NYSE Euronext: KCG) and Equiduct Systems Ltd., today announced that Knight has agreed to make a strategic investment in Equiduct, the pan-European equities trading platform. Knight's Kee-Meng Tan, Managing Director and Head of the Electronic Trading Group in Europe, will join the Equiduct board. Terms of the investment, which remains subject to approval by Equiduct's shareholders, were not disclosed.

"Knight is partnering with Equiduct and Citadel Securities to help level the playing field for retail investors in Europe," Mr. Tan said. "Retail investors have very few resources available to address challenges in the marketplace – fragmentation in European markets, the absence of a consolidated tape and limited price discovery. The Equiduct model, powered by cutting-edge technology, gives broker-dealers the ability to provide high-quality execution to their end clients at the best price."

"We welcome this important strategic investment by Knight, which demonstrates our commitment to making Equiduct a leading European trading platform," said Peter Randall, Chief Executive Officer of Equiduct. "Together with Knight and Citadel Securities, we will enhance our fast, cost-effective, all-in-one solution for retail broker-dealers."

Equiduct has created PartnerEx (BEST), an innovative market model that aggregates pricing data and gives broker-dealers the ability to satisfy their best execution pricing obligations for retail clients trading in equities. Both Knight and Citadel Securities act as market makers on PartnerEx. Equiduct also operates a traditional order book (BOOK) that includes executable two way quotes for over 1,100 leading European names. Knight and Citadel Securities are active participants in this segment.

Equiduct is majority owned by Citadel Securities. As part of the transaction, Borse Berlin AG will maintain their current shareholding in Equiduct and continue to provide the platform with regulated market infrastructure and supervision.

"We are very pleased that Knight has joined our strategic partnership with Borse Berlin AG," said Matteo Cassina, President of Citadel European Execution Services, a division of Citadel Securities. "Knight and Citadel have a history of successful collaboration in emerging trading platforms. We look forward to working together in the European market and expanding Equiduct's capabilities."

The transaction is expected to close by the end of June 2010.

About Knight

Knight Capital Group, Inc. (NYSE Euronext: KCG) is a global financial services firm that provides market access and trade execution services across multiple asset classes to buy- and sell-side firms. Knight's hybrid market model features complementary electronic and voice trade execution services in global equities and fixed income as well as foreign exchange, futures and options. The firm is the leading source of liquidity in U.S. equities by share volume. Knight also offers capital markets services to corporate issuers. Knight is headquartered in Jersey City, NJ with a growing global presence across North America, Europe and the Asia-Pacific region. For more information, please go to www.knight.com.

About Equiduct

Equiduct is a market segment of German stock exchange Borse Berlin AG to whom Equiduct is the provider of cutting-edge technology and functionality.  It offers fast, cost-effective execution and an all-in-one solution for trading European equities including blue chip equities. With a sophisticated market model, Equiduct is aimed at enabling sell-side participants to provide order-by-order execution to clients at the best price.

About Citadel Securities

The Citadel Securities platform includes investment banking, institutional sales and trading, multi-asset class market-making and order execution services. Securities market making, institutional sales and trading, investment banking, and securities trade execution services are provided in the United States by Citadel Securities L.L.C., a member of FINRA and in Europe by Citadel Securities (Europe) Limited, regulated by the UK's Financial Services Authority.

Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts and are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with changes in market structure, legislative or regulatory rule changes, the costs, integration, performance and operation of businesses recently acquired or developed organically, or that may be acquired in the future, by the Company and risks related to the costs and expenses associated with the Company's exit from the Asset Management business. Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein. Readers should carefully review the risks and uncertainties disclosed in the Company's reports with the U.S. Securities and Exchange Commission (SEC), including, without limitation, those detailed under the headings "Certain Factors Affecting Results of Operations" and "Risk Factors" in the Company's Annual Report on Form 10-K for the year-ended December 31, 2009, "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter-ended March 31, 2010, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. This information should also be read in conjunction with the Company's Consolidated Financial Statements and the Notes thereto contained in the Company's Annual Report on Form 10-K for the year-ended December 31, 2009, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time.

SOURCE Knight Capital Group, Inc.



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