KCG Holdings, Inc.NYSE
KCG Holdings Is Improving What's In Their Control But To What End?
Alpha Gen Capital
Alpha Gen Capital
Thu, Oct. 20, 3:12 PM
- "The earnings miss in Q3 was almost exclusively a function of a very low revenue capture rate in Market Making (0.67 bps versus our estimate of 0.79 bps), says Wells Fargo's Chris Harris, reiterating his Outperform rating, though cutting estimates.
- September was particularly bad, he says, coming in at 0.36 bps.
- For its part, KCG (KCG -7.3%) attributes the weakness to one-directional markets that were driven by investor redemptions, says Harris, who expects things to improve in Q4, but so far October doesn't look great.
- There are some positive catalyst to look forward to, he says: Ongoing expense cuts (2017 costs should be below 2016), the monetization of KCG's stake in BATS (now free to sell 4.4M shares and will receive cash on the closing of CBOE's purchase). Together, this could mean about $150M of after-tax proceeds - 11% of KCG's market cap, which could be used for buybacks.
- Previously: KCG Holdings reports Q3 results (Oct. 20)
Thu, Oct. 20, 12:59 PM
Thu, Oct. 20, 7:47 AM
Wed, Oct. 19, 5:30 PM
Fri, Sep. 23, 1:02 PM
Fri, Sep. 23, 7:30 AM
- Flow Traders, a small Dutch firm that is already the largest trader of European ETFs, is taking on U.S. market makers like Citadel, Susquehanna, and KCG on their own turf.
- The plan: focus on low volume, lesser-traded ETFs.
- ETFs should copy the performance of the securities they track, a feat that's difficult in practice for the more complex products.
- For example, the iShares MSCI World ETF trades during U.S. hours even though it includes Japanese companies.
- “We have made it our mission, our unique angle, to know what the MSCI World is worth when those stock exchanges are closed," Flow says. "We have a very sophisticated algorithm and traders who know how to price the index.”
Wed, Jul. 27, 7:32 AM
- The company announces a deal to buy Stockholm-based Neonet Securities, an independent agency broker and execution specialist. Terms were not disclosed.
- Founded in 1996, Neonet deals primarily in European equities across 30 public and private markets to roughly 200 clients in more than 20 countries.
- KCG expects the deal to be slightly accretive to earnings in 2017.
Thu, Jul. 21, 7:08 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Tue, May 10, 9:19 AM
- At issue are whether the firms are giving customers unfavorable prices on trades in order to book more profits on their own behalf, according to the Reuters story. SEC rules, of course, says brokers are legally required to seek the "best execution price available."
- Documents subpoenaed from KCG are related to market-making activities from 2009-11, according to a source. In 2012, the head of KCG's electronic trading group, Jamil Nazarali, left to join Citadel, and that firm's wholesale market making operation has since grown substantially.
Thu, Apr. 21, 8:01 AM
- KCG Holdings (NYSE:KCG): Q1 EPS of $0.41
- Revenue of $345.42M (+11.0% Y/Y)
Wed, Apr. 20, 5:30 PM
- ADS, ALK, AZZ, BANC, BBT, BHE, BIIB, BK, BX, CFG, CLS, COL, DAN, DGX, DHI, DHR, DOV, DST, ERIC, FAF, FCS, FITB, GM, GMT, HOMB, IMAX, JAKK, JCI, KCG, KEY, LAD, LAZ, LUV, MAN, MDSO, MDWD, NUE, NVR, NVS, PBCT, PHM, PII, POOL, PPG, PVTB, RS, SHW, SILC, SNA, SON, STC, SWK, SYNT, TCB, TRV, UA, UNP, USG, UTEK, VZ
Tue, Apr. 12, 10:34 AM
- KCG Holdings (KCG +2.3%) hires former Goldman Sachs managing director Michael Seigne to lead sales for ETFs, program trading, and electronic trading in London. The hire reunites Seigne with Rob Crane, his former colleague of 12 years at Goldman. Crane has been head of KCG's European execution services since last summer.
- Source: Bloomberg
- KCG Europe is one among a number of electronic-trading outfits to hire bank executives as regulation changes the way banks are allowed to conduct business in the region.
- Now read: KCG Holdings Is Improving What's In Their Control But To What End? (Feb. 18)
Fri, Jan. 29, 7:35 AM
- KCG Holdings (NYSE:KCG): Q4 EPS of -$0.05
- Revenue of $246.13M (-28.5% Y/Y)
Thu, Jan. 28, 5:30 PM
Dec. 4, 2015, 3:47 PM
- At issue was KCG's performance during the market panic on Aug. 24, when JPMorgan's (NYSE:JPM) stock price dropped by as much as 20% before recovering.
- The bank has informed the NYSE of its intention to replace KCG, reports the WSJ, and a number will be interviewed next week. KCG will have the opportunity to reapply for its job.
- The news today was enough to send KCG lower by nearly 6% at one point, but - like JPMorgan on that day in August - KCG has recovered and is currently flat on the session.