Knight was founded in 1995 under the name Knight/Trimark. Knight/Trimark was
renamed Knight Trading Group, Inc. in May 2000. In May 2005, Knight was renamed
Knight Capital Group to better reflect the company's broader business operations
beyond equities trading.
Our Global Markets offices are located in Atlanta, GA, Boston, MA, Chicago, IL, Garden City, NY, Dallas, TX, Jersey City, NJ, London, UK, New York, NY, Purchase, NY, Red Bank, NJ, San Francisco, CA, Santa Clara, CA, Los Angeles, CA, and Singapore.
Our Asset Management offices are headquartered in Minnetonka, MN with offices in Hong Kong and London.
Knight Capital Group, Inc. (Nasdaq: NITE) is a leading financial services firm that provides
comprehensive trade execution solutions and asset management services.
Asset Management
Our Asset Management business, Deephaven Capital Management, is a global multi-strategy alternative
investment manager focused on delivering attractive risk-adjusted returns with low correlation to
the broader markets for institutions and private clients.
Global Markets
Our Global Markets business provides a broad range of customized trade execution products and services
across multiple asset classes for broker-dealers, institutions and issuer companies. We continually
apply knowledge and innovation to the trading and asset management processes to build lasting client
partnerships through consistent performance and superior client service.
Knight owns a number of subsidiaries, some of which operate as regulated broker-dealers. These broker-dealers are subject to extensive oversight under federal, state and applicable international laws.
Knight Equity Markets
Knight Equity Markets, L.P. ("KEM") operates as a market-maker in over-the-counter (“OTC”) equity
securities, primarily those traded in The Nasdaq Stock Market and on the OTC Bulletin Board. KEM
also operates the Company’s domestic institutional sales business. In December 2003, KEM acquired
the business of Donaldson & Co., Inc., a firm that specializes in soft dollar and commission
recapture services.
KEM is a broker-dealer registered with the Securities and Exchange Commission ("SEC" or "Commission")
and is a member of the Nasdaq Stock Exchange, the Financial Industry Regulatory Authority (“www.finra.org”),
the National Stock Exchange, the Pacific Stock Exchange and the National Futures Association (“NFA”).
Knight Equity Markets, L.P. is a subsidiary of Knight Capital Group, Inc.
Knight Securities, L.P. was renamed Knight Equity Markets, L.P. effective September 1, 2003.
Knight Capital Markets
Knight Capital Markets LLC (“KCM”) operates as a market-maker in the Nasdaq Intermarket™,
the over-the-counter market for New York Stock Exchange and American Stock Exchange listed
securities. KCM is a broker-dealer registered with the SEC and is a member of the Nasdaq Stock
Exchange and the FINRA.
Knight Capital Markets LLC is a subsidiary of Knight Capital Group, Inc.
Knight Equity Markets International
Knight Equity Markets International Limited (“KEMIL”) is a U.K. registered broker-dealer that
provides execution services for institutional and broker-dealer clients in U.S., European and
international equities.
Knight Equity Markets International Limited is a subsidiary of Knight Capital Group, Inc.
KEMIL is authorized and regulated by the FSA and is a member of the Borsa Italiana, Deutsche
Borse AG, Euronext N.V. (incorporating Euronext Amsterdam, Euronext Brussels, Euronext Lisbon
and Euronext Paris), The London Stock Exchange, OMX (incorporating the Copenhagen Stock Exchange,
Helsinki Exchange and Stockholm Stock Exchange), Oslo Børs and virt-x.
Direct Trading Institutional
Direct Trading Institutional, L.P. (“Direct Trading”) provides institutions with direct market
access trading through an advanced electronic platform. The business of Direct Trading was acquired
in June 2005.
Direct Trading is a broker-dealer registered with the SEC and is a member of the Nasdaq Stock
Exchange, the FINRA and the NFA.
Direct Trading Institutional is a subsidiary of Knight Capital Group, Inc.
Direct Edge ECN
Direct Edge ECN LLC (“Direct Edge”) operates as an electronic communications network (“ECN”).
Direct Edge is a liquidity destination offering the ability to match trades in Nasdaq National
Market and Nasdaq SmallCap securities by displaying orders in the Nasdaq Market Center or the
FINRA Alternative Display Facility. The business of Direct Edge was acquired in October 2005.
Direct Edge is a broker-dealer registered with the SEC and is a member of the Nasdaq Stock
Exchange, the FINRA and the National Stock Exchange.
Direct Edge ECN LLC is a subsidiary of Knight Capital Group, Inc.
Hotspot FX
Hotspot FX, Inc. and its subsidiaries (“Hotspot”) provide institutions and dealers with spot
foreign exchange executions through an advanced, fully electronic platform. Hotspot was
acquired effective April 1, 2006.
One Hotspot subsidiary is regulated by the FSA and another Hotspot subsidiary is a Futures
Commission Merchant registered with the Commodity Futures Trading Commission and is a member
of the NFA.
Hotspot FX, Inc. is a subsidiary of Knight Capital Group, Inc.
Knight BondPoint
Knight BondPoint delivers a centralized electronic trading platform to the U.S. bond market and a suite
of front-end applications for retail advisors and their clients. The business of Knight BondPoint was acquired
in October 2006 and changed its name to Knight BondPoint in January of 2008.
Knight provides comprehensive trade execution solutions in cash equities to the buy side and to the sell side. We are a leading Nasdaq market maker and have a significant presence in the NYSE-listed and third markets. We offer high-touch, low-touch and no-touch trading solutions. Knight also provides Asset Management services for institutions and high net worth individuals.
Knight makes a market in nearly every domestic equity security, often risking and committing its own capital to execute its clients' orders. By providing additional liquidity for trading in small- and mid-cap stocks, Knight plays an important role in the capital formation process.
A market maker in a security is a broker-dealer that regularly and continuously holds itself out to its clients as ready, willing and able to buy or sell that security from or to its clients in amounts less than block size; (i.e., in amounts less than 10,000 shares). A market maker continuously publishes (quotes) a bid price and an ask price and must honor the quote by trading at that price when an incoming order satisfies that price. A Specialist performs a similar role when the transaction occurs on an Exchange.
A decentralized market (as opposed to an exchange market) where geographically-dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. The Nasdaq market is an over-the-counter (OTC) market for US stocks.
The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. High liquidity is generally characterized by a high level of trading activity.
Capital facilitation occurs when a firm uses and risks its own funds in connection with a transaction. A firm’s willingness to facilitate capital increases liquidity by helping to ensure that there are always buyers and sellers for the securities.
What is the over-the-counter bulletin board (OTCBB)?
The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on Nasdaq® or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs).
The Pink Sheets LLC is a privately owned company whose Electronic Quotation Service provides an Internet-based, real-time quotation service for OTC equities and bonds.
National Market System (NMS). This refers to the system of trading over-the-counter (OTC) stocks under the sponsorship of FINRA and Nasdaq. These stocks must meet certain criteria for size, profitability and trading activity. More comprehensive information is available for NMS stocks than for non-NMS stocks traded OTC (high, low, and last-sale prices, cumulative volume figures, and bid and ask quotations throughout the day).
Knight has never declared or paid a cash dividend on its Class A Common Stock. The company currently intends to retain all of its retained earnings for use in its business. Knight does not anticipate paying any cash dividends in the foreseeable future. However, the payment of cash dividends is at the discretion of our Board of Directors.
Who is the transfer agent and registrar for Knight stock and how may I contact them?
Mellon Investor Services LLC
P.O. Box 3315
South Hackensack, New Jersey 07606-1915
Telephone: 800.851.9677 www.melloninvestor.com
What is Knight's policy on company employees, directors and consultants ('Associates') trading in its stock?
Knight has a very specific policy with regard to associates who wish to buy or sell shares of company stock. Each quarter, all Knight associates are allowed to purchase or sell company stock only during a specific trading “window”, the timing of which is determined by the company’s legal and compliance department.
How can a company make a request to Knight Captial Markets LLC to register as a market maker in its stock?
An issuer request to make a market in its stock traded on Nasdaq should contact the following:
Knight Capital Markets, LLC
Legal and Compliance Department
545 Washington Blvd.
Jersey City, NJ 07310
Upon reviewing the documentation submitted, Knight Capital Markets, LLC will inform the issuer company if it decides to register as a market maker in its stock. This decision is made by Knight Capital Markets, LLC on an independent basis. We are prohibited from collecting fees in exchange for registering as a market maker in a particular stock.
How can a company request that Knight Capital Markets register as a market maker in its stock?
Knight Capital Markets (KCM) registers as a market maker in each equity security that lists on the New York Stock Exchange (NYSE) or on the American Stock Exchange (AMEX). Listed companies need not make such a request of KCM.
Any questions should be directed in writing to:
Knight Capital Markets, LLC
Legal and Compliance Department
100 Manhattanville Road
Purchase, NY 10577
If you are not a client of KEM or KCM and your order was routed to KEM or KCM and believe that your order might not have been handled properly, you should raise any such concerns directly with the broker-dealer with whom you placed your order. That broker-dealer who routed your order to us will contact us and voice any questions or concerns related to the manner in which your order was handled. Knight will research the matter thoroughly and reply directly to your broker-dealer.
