|DECEMBER 24, 2001|
|Knight Financial Products Acquires CBOE Specialist Rights from KFT|
|JERSEY CITY, N.J., Dec 24, 2001 /PRNewswire via COMTEX/ --
Acquisition Brings Knight's Total Options Market-Making Capabilities to Approximately 570 Products on All Five U.S. Options ExchangesKnight Financial Products LLC, a subsidiary of Knight Trading Group, Inc. (Nasdaq: NITE), today announced that it has acquired KFT DPM, LLC's Designated Primary Market Maker (DPM) rights in 24 option classes at the Chicago Board Options Exchange (CBOE).
"Knight Financial Product's purchase of KFT's DPM rights leverages our existing infrastructure to trade more products and gives Knight a greater presence on the Chicago Board Options Exchange," said Peter S. Hajas, President and Chief Operating Officer of Knight Trading Group. "The acquisition of KFT's CBOE specialist posts, on the heels of last month's acquisition of specialist posts on the Philadelphia and American exchanges, furthers our plan to grow our specialist franchise, build market share, and enhance Knight's ability to derive benefits of scale in derivatives market making."
"Regulatory and market structure change has fostered an environment of consolidation and opportunity for participants in the derivatives marketplace, and Knight Financial Products, now the third-largest U.S. options market maker, is a beneficiary," said Kenneth D. Pasternak, Chairman and Chief Executive Officer of Knight Trading Group. "As we increase our presence in the options market-making arena, we further Knight's overall goal to become the single point of entry for order flow across the broad range of equities and derivatives."
The acquisition gives Knight the right to be DPM in 24 option issues on the CBOE. Four of those issues are among the top 200 in ranking by national volume; Advanced Micro Devices, Inc., Computer Associates International, Inc., Human Genome Sciences, Inc. and Semiconductor Holders.
Knight has added 193 option classes in 2001 to its specialist unit and a total of 342 option classes since the Company's January 2000 acquisition of Arbitrade Holdings LLC, now Knight Financial Products. Knight now provides options market making in approximately 570 options classes, which cover more than half of all equity option order flow on all five U.S. options exchanges.
Knight is the liquidity center that offers superior execution services to its broker-dealer and institutional clients in over-the-counter (OTC) and listed equity securities, and in equity options. In so doing, Knight helps its clients meet their fiduciary obligation of obtaining best execution for the securities orders that they route on behalf of their customers. Knight also maintains an asset management business for institutional investors and high net worth individuals through Deephaven Capital Management LLC.
Knight has the power to commit capital for market orders and also maintains one of the largest limit order books in the OTC market. The Company has approximately 1,300 employees worldwide and is one of the largest destinations for stock orders placed via the Internet. Knight traded 112 billion shares in the year 2000, a volume behind only those posted by Nasdaq and the New York Stock Exchange (NYSE). Ultimately, Knight plans to enable its clients to trade all types of equity securities and options at any time, from anywhere in the world. More information about Knight can be obtained at www.knighttradinggroup.com .
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 and Exchange Commission.
SOURCE Knight Trading Group, Inc.
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