|OCTOBER 14, 2008|
|Knight Introduces NetDelta(TM) Settlement Platform for the Credit Derivatives Market|
NetDelta addresses inefficiencies and risks inherent to the OTC derivatives market
JERSEY CITY, N.J., Oct 14 /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (Nasdaq: NITE) today introduced NetDelta(TM), an electronic settlement platform for the credit derivatives market. NetDelta addresses market infrastructure inefficiencies and underlying risks inherent in OTC derivatives by providing buy- and sell-side firms with comprehensive, real-time solutions for entering, maintaining and exiting new positions. NetDelta will also be able to reduce counterparty risk for existing positions in the near future.
"NetDelta was designed to address unnecessary counterparty risk, balance sheet inefficiencies, settlement lags, valuation issues and a lack of liquidity," said Lucio Biase, Managing Director, NetDelta, LLC. "NetDelta provides the automation and infrastructure the $54.6 trillion credit derivatives market needs."
The NetDelta solution benefits traders, prime brokerages, risk managers, controllers and settlement groups. It is applicable to new trades and will soon be applicable to existing positions in a firm's portfolio as well. The NetDelta offering also addresses many of the key principles recently set forth by the Operations Management Group (OMG) and President's Working Group (PWG) - both of which aim to instill a clear, functional and well-designed infrastructure that can meet the needs of the OTC derivatives markets.
"We are excited to bring NetDelta to the OTC derivatives markets in these challenging times," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "We believe NetDelta is an ideal solution for the entire lifecycle of credit derivative trades. Importantly, the NetDelta solution supports the credit derivative market makers who are so vital to the health of the market."
The platform's modular technology allows for simple integration into existing trading platforms, settlement services and reporting engines. In addressing market infrastructure and legacy issues, the NetDelta solution renders unwinds and novations obsolete for positions cleared on NetDelta. NetDelta also allows for greater transparency of the value of each position without disclosing pivotal market making data. At present, NetDelta is internally beta testing the platform and in the process of onboarding clients.
NetDelta LLC is a subsidiary of Knight Capital Group, Inc. For more information about NetDelta, please go to www.knight.com/netdelta.
Knight Capital Group, Inc. (Nasdaq: NITE) is a leading financial services firm that provides electronic and voice access to the 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 international securities, futures, options, foreign exchange and fixed income. In Asset Management, Knight owns a 51 percent stake in Deephaven Holdings with Deephaven Partners controlling the remaining 49 percent as of February 1, 2008. Deephaven (www.deephavenfunds.com) is a global, multi-strategy alternative investment manager serving institutions and private clients. 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 the costs, integration, performance and operation of businesses recently acquired, or that may be acquired in the future, by the Company. 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, 2007, 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, 2007, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time.
SOURCE Knight Capital Group, Inc.