Knight Capital Group, Inc. (Nasdaq: NITE) today announced that The Goldman Sachs Group, Inc. completed the purchase of a minority equity interest in Direct Edge ECN. In addition, Citadel Derivatives Group LLC, an affiliate of Citadel Investment Group, L.L.C., increased its minority ownership interest. Financial terms of the transactions were not disclosed.
"Knight is pleased to formally welcome Goldman Sachs as an owner in Direct Edge along with Citadel," said Thomas M. Joyce, chairman and ceo of Knight Capital Group. "Direct Edge now has a strong trio of industry leaders focused on developing a vibrant, low-cost alternative trade destination. In addition to our collective support, Direct Edge already is benefiting from the experienced direction of ceo Bill O’Brien, who joined in July. Together, we look forward to further growing Direct Edge as a robust market venue."
Knight announced the agreement with Goldman Sachs to purchase a minority equity interest in Direct Edge in a press release dated August 13th, 2007. Both the Goldman Sachs and Citadel transactions were completed at the close of business on September 28th, 2007.
As a result of the transactions, Knight Capital Group’s ownership interest in Direct Edge is now less than 50 percent. As of the close of business September 28th, 2007, Direct Edge is no longer a consolidated subsidiary of Knight for financial reporting purposes.
Direct Edge entered the market in October 2005 and in September 2007 averaged volume of approximately 360 million shares per day.