New
York City, NY, USA (August 13, 2013) -- Bloomberg reported that
Getco and Knight Capital lost money last quarter as the trading firms
were completing a merger prompted by Knight's brush with bankruptcy a
year ago. KCG Holdings, as the firm formed by the July 1 union is
known, said in a statement that Getco's second-quarter net loss
totaled $72.9 million and Knight's loss was $30.8 million. Getco's
sales fell 16 percent from a year earlier to $118 million, while
Knight's revenue rose 25 percent to $315 million.
Excluding
$61 million in expenses related to the merger along with writedowns,
restructuring charges and finance commitment fees, Getco's pretax
loss was $8.9 million. Getco's market-making unit produced a loss of
$2 million on $118 million in revenue, compared with profit of $9.7
million and sales of $136 million a year earlier. The
execution-services business, which provides trading services to
clients, improved revenue from a year earlier while posting a bigger
loss. Sales rose 41 percent to $13 million, and the loss widened to
$2.9 million from $1.5 million. Knight's market-making profit
amounted to $50 million in the second quarter, an increase from $5.9
million a year earlier.
Edgar
Perez, the celebrated author of The Speed Traders, just released
Knightmare on Wall Street, The Rise and Fall of Knight Capital and
the Biggest Risk for Financial Markets, exclusively available at
http://www.KnightmareonWallStreet.com,
book that provides a thrilling minute-by-minute account of the
terrifying hours following their August 1, 2012 trading debacle, with
news-breaking research regarding Knight Capital's 17 years of
tumultuous existence as an independent company.
"The
book goes into great detail when it analyses the backstories of the
main characters involved in the company starting with founders Ken
Pasternak and Walter Raquet, CEO Tom Joyce (known as T.J. since his
Harvard days) and vulture bidders Daniel Coleman from GETCO and
Vincent Viola from Virtu. While other books lose many people early,
Perez whets readers' appetites early by hitting the ground running in
chapter one focusing on the chaos that ensued Knight's infamous
trades at the opening."
"Perez
does a tremendous job in making the histories of all of the people
and companies involved as easy to digest as possible; peg orders are
arguably not an easy concept to explain. Again - excellent book, but
readers have to invest some time slogging through the first 25% of
the book to get back to the action. As soon as Joyce comes back to
the office after surgery and realizes the extent of the challenges
ahead, all hell breaks loose and things start to get very exciting
again."
Perez
is widely regarded as the preeminent global expert in the specialized
area of high-frequency trading. He is author of The Speed Traders, An
Insider's Look at the New High-Frequency Trading Phenomenon That is
Transforming the Investing World, published in English by McGraw-Hill
Inc. (2011), published in Mandarin by China Financial Publishing
House (2012), and Investasi Super Kilat: Pandangan Orang dalam
tentang Fenomena Baru Frekuensi Tinggi yang Mentransformasi Dunia
Investasi, published in Bahasa Indonesia by Kompas Gramedia (2012).
Perez is course director of The Speed Traders Workshop, How High
Frequency Traders Leverage Profitable Strategies to Find Alpha in
Equities, Options, Futures and FX (Hong Kong, Sao Paulo, Seoul, Kuala
Lumpur, Warsaw, Kiev, New York, Singapore, Beijing, Shanghai). He
contributes to The New York Times and China's International Finance
News and Sina Finance.
Media
Contact:
Julia
Petrova
Media
Relations Coordinator
Knightmare
on Wall Street
516-761-4712
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