Profile: KCG Holdings Inc (KCG)
2 Dec 2016
KCG Holdings, Inc. (KCG), incorporated on December 26, 2012, is a securities firm. The Company offers a range of services designed to address trading needs across asset classes, product types and time zones. The Company operates through three segments: Market Making, Global Execution Services and Corporate and Other. It combines technology with client service across market making, agency execution and trading venues and also engages in principal trading through exchange-based electronic market making. It has multiple access points to trade global equities, options, fixed income, currencies and commodities through voice or automated execution.
The Company's Market Making segment consists of market making in the cash, futures and options markets across global equities, options, fixed income, currencies and commodities. It commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions. Principal trading in the Market Making segment primarily consists of direct-to-client and non-client exchange-based electronic market making, including trade executions conducted as an equities Designated Market Maker (DMM) on the New York Stock Exchange (NYSE) and NYSE Amex Equities (NYSE Amex). It is a participant on all global equity and futures exchanges and it also trades on domestic electronic options exchanges. As a complement to electronic market making, its cash trading business handles specialized orders and also transacts on the over-the-counter (OTC) Bulletin Board, marketplaces operated by the OTC Markets Group Inc. and the Alternative Investment Market (AIM) of the London Stock Exchange. It offers direct-to-client market making services across multiple asset classes primarily to sell-side clients, including global, national and regional broker dealers and banks, as well as buy-side clients, including mutual funds, pension plans, plan sponsors, hedge funds, trusts and endowments in North America, Europe and Asia.
Global Execution Services
The Company's Global Execution Services segment comprises agency execution services and trading venues, offering trading in global equities, futures, options and fixed income to institutions, banks and broker dealers. It earns commissions as an agent between principals for transactions. Agency-based, execution-only trading in the segment is done through a range of access points, including algorithmic trading and order routing in global equities and options; institutional sales traders executing program, block and riskless principal trades in global equities and exchange traded funds (ETFs); a fixed income electronic communication network (ECN) that also offers trading applications, and an alternative trading system (ATS) for global equities. Through KCG Electronic Trading, it offers electronic execution services in global equities, options, futures and commodities through algorithmic trading, order routing and an execution management system (EMS), as well as through internal crossing through its registered ATS. It also offers a range of products and services and voice access to the global markets, including sales and trading for equities, ETFs and options. Additionally, it provides buy-side clients with liquidity, actionable market insights, anonymity and trade executions, and offers trade execution services. It also provides soft dollar and commission recapture programs. KCG BondPoint provides electronic fixed income trading solutions to sell-side firms through a fixed income ECN that serves as an electronic inter-dealer system and allows clients to access live and executable retail-sized offerings in corporate bonds, municipals, government agency, treasuries and certificates of deposits. KCG BondPoint also provides front-end applications for brokers and advisors, as well as a trading application for traders.
Corporate and Other
The Company's Corporate and Other segment contains functions that support the Company's other segments, such as self-clearing services, including stock lending activities. It contains investments principally in strategic financial services-oriented opportunities.
KCG Holdings Inc
300 Vesey Street
NEW YORK NY 10282