| NEW YORK, Sept 4
NEW YORK, Sept 4 KCG Holdings Inc, the
trading firm formed in July through Getco Holding Co's $1.4
billion takeover of Knight Capital Group, said on Wednesday
three managers were exiting its exchange-traded funds team.
The managers leaving are Reggie Browne, Eric Lichtenstein
and Darren Taube, a company spokeswoman said. All three came
from the Knight side of the business, and were unable to agree
on terms of new contracts, a person familiar with the situation
KCG first disclosed the information in a regulatory filing
that did not name the individuals.
Severance costs related to the layoffs, expected to be
effective Sept. 13, 2013, will total $15 million, and will be
recognized in the third quarter, the company said in the filing.
Joe Mazzella, and John Dibacco will be overseeing the ETF
group on an interim basis, which KCG plans to further develop,
the source said.
KCG is one of the biggest U.S. market makers in ETFs.
In August last year, a software problem at Knight led to
millions of unintentional orders flooding into the market,
leaving the firm with a huge position it had to unload at a loss
of $461.1 million. Knight secured $400 million in rescue
financing - in exchange for a more than 70 percent stake in the
company - from a group of investors that included Chicago-based
Getco and was led by Jefferies Group Inc. Jefferies later helped
finance Getco's proposed acquisition of Knight.