JERSEY CITY, New Jersey and LONDON, April 21 /PRNewswire/ --
Knight Capital Group, Inc. (Nasdaq: NITE) today announced the introduction of agency algorithmic trading and smart order execution strategies developed specifically for the European equity marketplace.
Knight's EdgeTrade Algorithmic Suite for European equities is powered by FAN(TM), a smart order execution algorithm which sources liquidity from multiple exchange and MTF destinations simultaneously while adapting to market conditions in real time and re-circulating orders to where executions are occurring. Buy- and sell-side traders have used FAN to source liquidity and complete trade executions in the fragmented U.S. equity markets since 2006. With knowledge and experience from the success of FAN in the U.S., Knight has reengineered and customized its smart order execution technology for European equities, taking into account the microstructure and nuances of each market destination. FAN also allows for single-ticket clearing.
Liquidity fragmentation in Europe is accelerating, with new market destinations forming and liquidity increasingly migrating away from the primary exchanges, said Bradley Duke, Managing Director of Institutional Electronic Sales in Europe. Traders need tools to simplify the process of finding actionable liquidity. FAN is a dynamic smart order execution algorithm, adapting to market conditions in real time and routing orders to pools of liquidity where executions are most likely to occur. It allows clients to complete trades efficiently with minimum market impact and with opportunities for high fulfilment rates and price improvement. Knight also recognizes the complexities of equity clearing in Europe, so FAN allows clients to complete trades across multiple market centres on just one ticket.
The EdgeTrade Algorithmic Suite includes smart order execution algorithms based on FAN. Smart order execution leverages real-time and historical data to help clients execute orders by seeking out available liquidity among fragmented displayed and non-displayed markets.
These solutions include:
- FAN - Sweeps/posts an order simultaneously to public liquidity and dark pools, dynamically allocating the order to destinations where liquidity is located - Covert(TM) - Posts and fills orders in dark pools exclusively - Sumo(TM) - An aggressive strategy for quickly filling an order designed to reduce information leakage and minimize market impact
FAN also is incorporated into various benchmark and participation algorithms designed for European markets:
- Arrival Price - VWAP - TWAP - Smart VTrack - Target Close
Knight committed significant technology and other resources to capture the nuances of both the European marketplace as a whole and the complex microstructures of individual markets, Mr. Duke said. Knight is connected to all of the primary exchanges and MTFs throughout Europe and expects to continue adding significant liquidity destinations as they come on line.
Clients can access the EdgeTrade Algorithmic Suite through Knight Direct, Knight's multi-asset class execution management system, as well as through a number of third party execution and order management systems via Knight Direct's FIX capabilities. The algorithms and Knight Direct are recent electronic trading complements to Knight's existing London-based trade execution services. Knight provides high-quality, client-centric voice trade execution and sales trading services to more than 400 European clients, leveraging its network of local brokers and its worldwide reach to market centres.
Interested clients should contact Bradley Duke to learn more about Knight's European algorithmic offering at +44-20-7997-7818, or email@example.com.
Knight Capital Group, Inc. (Nasdaq: NITE) is a leading financial services firm that provides electronic and voice access to the global capital markets across multiple asset classes for buy-side, sell-side and corporate clients. In Global Markets, we provide market access and trade execution services in nearly every U.S. equity security and a large number of global equities and fixed income, foreign exchange, futures and options. Our approach to trading combines deep liquidity with robust trading technology and capital facilitation, when necessary, to deliver high quality trade executions consistent with client defined measures. We recently exited the Asset Management business, which had consisted of our 51% ownership of Deephaven Holdings, the parent company of Deephaven, a global multi-strategy alternative investment manager. For information regarding our exit from our Asset Management segment, refer to the Form 8-K's furnished by the Company on April 1, 2009 and January 27, 2009, and the Form 8-K filed by the Company on February 26, 2009. More information about Knight can be found at www.knight.com.
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 (i) the costs, integration, performance and operation of businesses recently acquired, or that may be acquired in the future, by the Company, and (ii) the closing of the sale of the assets of the Asset Management business and 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, 2008, 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, 2008, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time.
Belinda Morris, Public Relations Contact for Knight in Europe, +44 (0)20-7-457-2020 (office), or + 44 (0)791717-8860 (mobile), firstname.lastname@example.org; or Kara Fitzsimmons, Director, Media Relations, +1-201-356-1523, email@example.com, or Ludwig Marek, Vice President, Marketing Communications, +1-201-356-1506 (office), or +1-646-824-6260 (mobile), firstname.lastname@example.org, or Margaret Wyrwas, Senior Managing Director, Communications, Marketing Investor Relations, +1-201-557-6954, email@example.com, all of Knight