Virtu Financial's Takeover of KCG Holdings Is Imminent

A major chapter in the fascinating saga of High-Frequency Trading (HFT) High-Frequency Trading (HFT) High-frequency trading (HFT) is a trading approach that requires the usage of high-powered computer applications to execute a large volume of orders within milliseconds. HFT employs pre-programmed trading commands and a multitude of complex algorithms.These are used to analyze multiple markets simultaneously while automatically executing trades based on preprogrammed trading scenarios for varying market conditions. Speed is of the essence with HFT, where traders with the fastest rates tend to be High-frequency trading (HFT) is a trading approach that requires the usage of high-powered computer applications to execute a large volume of orders within milliseconds. HFT employs pre-programmed trading commands and a multitude of complex algorithms.These are used to analyze multiple markets simultaneously while automatically executing trades based on preprogrammed trading scenarios for varying market conditions. Speed is of the essence with HFT, where traders with the fastest rates tend to be Read this Term) firms is just about to end. The success of Virtu Financial's unsolicited bid to buy all of the outstanding shares of KCG Holdings, Inc. (NYSE: KCG) will be announced today, according to the FT.

The London Summit 2017 is coming, get involved!

Low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term is considered to be the main force pushing for consolidation in the HFT sector. Once Virtu Financial's takeover of KCG will be fully complete it is expected much of its current employees in the field will be let go. Furthermore, the FT reports that Charles Susi, head of institutional sales and electronic trading at KCG, has already announced internally that he was leaving the company.

Background

KCG offers trading services across several asset classes, product types and time zones. For every order, the company provides a solution, whether market making or agency, lit or dark, voice or automated.

During February 2017, KCG reported an average daily US equities market making figure of $28.0 billion traded, which was virtually unchanged on a month-over-month basis from $28.1 billion in January 2017. This trend was on par with the majority of institutional and retail exchanges during the month, which was absent of any specific unified trend.

The Virtu Financial offer to acquire the shares of KCG’s common stock for $18.50-$20.00 per share in cash also is conditional upon its completion of due diligence, obtaining financing and other matters.