KCG Looking for Buyers for HotSpot Platform

Trading firm KCG Holdings Inc plans to raise more than $300 million from the sale of its FX unit, according to sources privy to the matter.

KCG is partnering with Jefferies Group LLC as it seeks potential buyers of its HotSpot platform. Such buyers include Intercontinental Exchange Inc, CME Group Inc., NASDAQ OMX Group Inc, London Stock Exchange and Deutsche Boerse AG.

However, the search for potential buyers has been widened to include other securities companies, with first-round bids scheduled for November. The news sent KCG’s shares soaring 1.1 percent to $10.86 at 3:16 p.m., New York time, valuing the firm at approximately $1.3 billion.

HotSpot has at least 30 currency prime brokers who avail funds for trading, and has clients such as high-frequency trading companies, banks, corporations and hedge funds. Knight Capital acquired HotSpot in 2006 in a deal valued at $77.5 million.

KCG also announced that it posted a $9.6 million loss in the third quarter, down from a $227.8 million profit a year ago. The company dismissed 4 percent of its workforce, while more than five senior managers resigned in September.

KCG was created in 2013 following a decision by Knight Capital to look for a buyer after losses nearly grounded the company’s operations.

When contacted by reporters, representatives for NASDAQ, KCG, Deutsche Boerse and CME Group refused to comment while those for Intercontinental Exchange, Jefferies and the Intercontinental Exchange were unavailable for a comment.

Meanwhile, Cantor Fitzgerald has appointed Peter Gombocz as the Managing Director and Head of Electronic and Program Sales and Trading. Gombocz will work under Laurence Rose, the President and CEO of Cantor Fitzgerald Canada Corporation.


Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.