|DECEMBER 1, 2008|
|Knight's EdgeTrade Algorithmic Suite Ranked #1 Among Brokerages in NASDAQ Trading Costs Against VWAP for Second Consecutive Year|
The Elkins/McSherry Global Transaction Cost Analysis conducted for Institutional Investor magazine also ranked EdgeTrade among top five brokerages for NASDAQ stocks vs. Arrival Price and NYSE stocks vs. VWAP and Arrival Price
JERSEY CITY, N.J., Dec. 1 /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (Nasdaq: NITE) today announced that EdgeTrade, Knight's agency-only algorithmic offering, was recognized in the 12th Annual Global Transaction Cost Analysis conducted for Institutional Investor by research firm Elkins/McSherry, a subsidiary of State Street Corp. The EdgeTrade algorithmic suite is offered through Knight Direct LLC, a subsidiary of Knight Capital Group.
EdgeTrade's algorithms placed #1 among brokerages for NASDAQ trading benchmarked against Volume Weighted Average Price (VWAP) for the second consecutive year with a differential of 14.6 basis points. EdgeTrade also ranked #5 in NASDAQ trading benchmarked against Arrival Price. In NYSE trading, EdgeTrade ranked #3 and #5 among brokerages benchmarked against Arrival Price and VWAP, respectively.
Elkins/McSherry analyzed transaction costs over 12 months ending June 30, 2008 and included brokerages with greater than $3 billion in principal traded. Elkins/McSherry compiles trade data from more than 300 large institutions. The data covers more than 20 million trades, $5 trillion worth of principal and 400 billion shares traded, representing 1,500 investment managers and 2,000 brokers worldwide. The results of the 12th Annual Global Transaction Cost Analysis are published in the November issue of Institutional Investor magazine.
"We are very proud to have topped the Institutional Investor Survey for the second year in a row," said Joseph Wald, Managing Director, Knight Direct. "The science of sourcing liquidity is a major factor in achieving stellar performance. Our fine-tuned FAN routing logic leverages both Knight's deep internal liquidity and its vast connections to external dark and public execution venues."
EdgeTrade's agency-only strategies empower clients to maintain market anonymity and reduce overall transaction costs, while achieving their trading objectives. EdgeTrade's smart order execution strategies leverage 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, Covert and Sumo. EdgeTrade also offers VWAP and participation algorithms. Clients can access EdgeTrade algorithms through Knight Direct EMS(TM), a broker-neutral electronic trading platform covering multiple asset classes, or via major OMS and trading system providers.
"Knight continues to enhance the EdgeTrade algorithms and Knight Direct EMS through new functionality, geographic expansion and increased sales support," Mr. Wald said. Knight Direct EMS, which offers international, multi-asset class trading capabilities and access to EdgeTrade's algorithms, now includes real-time global transaction cost analysis tools. The company also recently added to its electronic offerings sales team with several new hires in the U.S. and Europe. "We look forward to leveraging our leading electronic trading experience in the U.S. to provide equally valuable offerings to our clients globally."
For more information about EdgeTrade's algorithms and services, please visit http://www.knight.com/ourOfferings/EdgeTrade.asp.
Knight Capital Group, Inc. (Nasdaq: NITE) is a leading capital markets 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, and risks associated with the unprecedented current market conditions and the resulting volatility, credit tightening and counterparty risk, as well as the negative effect on performance and assets under management in our Asset Management business and the suspension of redemptions and withdrawals of certain funds announced in the Form 8-K filed by the Company on October 30, 2008. 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.