|JUNE 4, 2002|
|Knight Trading Group Statement on Unfounded Assertions In Arbitration Claim|
|JERSEY CITY, N.J., Jun 4, 2002 /PRNewswire-FirstCall via COMTEX/ -- Knight
Trading Group, Inc. (Nasdaq: NITE) today issued the following statement from
Thomas M. Joyce, Chief Executive Officer and President, responding to
allegations raised in today's Wall Street Journal concerning an arbitration
claim filed last year by an ex-employee, Robert Stellato, against Knight Trading
"Today's Wall Street Journal story is based on a private arbitration matter made public in what we believe may be an attempt by a plaintiff seeking personal gain. All of Mr. Stellato's allegations are unfounded and without merit. We are committed to taking whatever steps are necessary to protect investors, employees and the company. Knight is confident that, at the end of the arbitration process, the company will be fully vindicated.
"Mr. Stellato originally raised concerns about an institutional trading practice last year, and Knight's Compliance Department conducted an immediate review with Mr. Stellato and determined that the concerns were unfounded. The SEC and the NASD routinely inquire into claims brought to their attention. After the arbitration claim was filed, Knight made the plaintiff's statement of claim available to the SEC and the NASD on a proactive basis. Knight is cooperating fully with their informal inquiries.
"Knight is a reputable company with leading performance, compliance and regulatory standards. We take our responsibility to our clients seriously, and integrity is important to us. Knight provides excellent service to its institutional clients and is looking to expand its business. We have expanded our institutional business in the last year with important new hires and a targeted strategy. Regarding our broker-dealer business, we are disturbed that today's Wall Street Journal story discusses retail investor trading, while the allegations raised by the arbitration claim relate only to business with institutions. Regardless, Knight's trading practices are among the best in the industry, and we are very proud of our performance record."
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 institutions 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 1,180 employees worldwide and is one of the largest destinations for stock orders placed via the Internet. Knight traded 135 billion shares in the year 2001, a volume behind only those posted by Nasdaq and the New York Stock Exchange (NYSE). More information about Knight can be obtained at www.knight-sec.com or www.knighttradinggroup.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. 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. 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; however, readers should carefully review reports or documents the Company files from time to time with the Securities and Exchange Commission.
SOURCE Knight Trading Group, Inc.
CONTACT: Margaret Wyrwas, Senior Vice President, Corporate Communications & Investor Relations, +1-201-557-6954, firstname.lastname@example.org, or Kara Fitzsimmons, Manager, Corporate Communications, +1-201-356-1523, email@example.com, or Judy Pirro, Manager, Investor and Shareholder Relations, +1-201-356-1548, firstname.lastname@example.org, all for Knight Trading Group, Inc.