KCG Holdings, Inc. has announced the consolidation and renaming of its U.S. broker-dealer operations into a single entity – KCG Americas LLC.
KCG was formerly Knight Capital Americas LLC.On July 2, 2013, Knight Capital was purchased in a $1.8 billion deal by high-speed trading firm Getco after the former was unable to recover from a technology meltdown that effectively destroyed the company.
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The name change and consolidation reflect a simplification of KCG’s post-merger, broker-dealer subsidiary structure. Further, the consolidation generates cost synergies and releases additional capital, the firm said in a release.
In order to create KCG Americas LLC, first the brokerage operations of GETCO Execution Services LLC and GETCO Securities, LLC were first consolidated into Knight Capital Americas LLC. OCTEG, LLC, Getcos equities market making unit, was then merged into KCA, which was subsequently renamed KCG Americas LLC, effective December 31, 2013 after the market close.
