KCG Holdings will sell its Futures Commission Merchant (KCG Futures) business to Wedbush Securities Inc for an undisclosed sum. KCG Futures, the division of A division of KCG Americas LLC in question, provides futures execution, clearing and custody services.
KCG Futures facilitates futures and commodities transactions among brokers, institutions, market professionals and non-clearing FCMs on major U.S. and international futures and options exchanges as well as FX clearing, according to a KCG press statement. According to the same statement, KCG expects that the the existing KCG staff, comprised of approximately 45 professionals in the U.S., will continue in their current roles and client contacts will remain the same.
“KCG Futures is a leading independent futures broker and has maintained a solid reputation for high-quality client service,” said Daniel Coleman of KCG. “This transaction is a positive development for everyone involved. KCG Futures will join the Wedbush team, where it can further position itself as a leader in the marketplace, allowing Wedbush to expand its futures clearing and execution services.
He added, The transaction not only reduces and simplifies KCG’s balance sheet, it also allows us to focus additional resources and energy on our primary businesses of market making, agency execution and trading venues.”
The press statement said that KCG will continue to engage in futures market making after the deal closes but did not reveal in what capacity.
Terms of the deal were not disclosed in the press statement. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed by year end.
