|DECEMBER 2, 1998|
|Knight/Trimark Group Acquires Certain Assets Of D.E. Shaw's Third Market Business|
Jersey City, NEW JERSEY (December 2, 1998) -- Knight/Trimark Group, Inc. (Nasdaq:NITE),announced today that Trimark Securities, Inc., a wholly owned subsidiary of Knight/Trimark Group and the leading OTC market maker in all NYSE- and AMEX-listed equity securities -- the Third Market -- has acquired certain assets from D.E. Shaw Securities, L.P. As a result of this transaction, D.E. Shaw, a major market maker in Third Market securities, will exit the Third Market arena at the end of this year to focus on its institutional customer businesses, quantitative proprietary trading, and other activities.
The agreement signed by the two firms involves the transfer of customer lists and other intellectual property, but does not include the sale of any D.E. Shaw proprietary trading or risk management technology. The arrangement is also likely to result in the transfer of certain Third Market staff from D.E. Shaw to Knight/Trimark Group.
"Trimark's proven abilities and expertise in the Third Market will serve well D.E. Shaw's customer base, which includes some of the most prestigious retail brokerage firms in the country, "noted Anthony M. Sanfilippo, President of Trimark Securities. "D.E. Shaw's strong reputation for superior execution quality meshes extremely well with our own standing in the industry. Trimark Securities' commitment to immediacy of execution, liquidity and price improvement for our customers has enabled us to become the largest Third Market liquidity provider, measured by the number of stocks traded, number of transactions, and share volume."
"This transaction reflects the ongoing consolidation of liquidity to a smaller universe of liquidity providers in both the Third Market and Nasdaq," added Kenneth D. Pasternak, President and Chief Executive Officer of Knight/Trimark Group, Inc. "We believe that market share will continue to increase at a handful of large liquidity providers like
Knight/Trimark Group, which is well positioned to effectively apply its innovative technology and proprietary trading methodologies while capitalizing on synergies and economies of scale." Knight/Trimark Group is a leading market maker in both Nasdaq securities and the over- the-counter market for New York Stock Exchange (NYSE)- and American Stock Exchange (AMEX)-listed equity securities -- the Third Market.
Knight/Trimark is the parent company of Knight Securities and Trimark Securities. Knight Securities trades in approximately 6,500 equity securities listed on Nasdaq and on the OTC Bulletin Board (OTCBB) of the National Association of Securities Dealers (NASD). Trimark Securities trades NYSE- and AMEX-listed equity securities over the counter. Knight/Trimark Group is "Dedicated to Execution Solutions." TM
The matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control which could cause actual results to differ materially from historical results, performance or other expectations and from any opinions or statements expressed with respect to future periods. These factors include, but are not limited to, the Company's ability to implement its growth strategies, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, intellectual property rights, and other factors detailed in the Company's registration statement and periodic reports filed with the Securities" Exchange Commission.