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.
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.
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.
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SOURCE Knight Capital Group, Inc.