KCG Reviewing London Staffing Levels
KCG Holdings Inc. (KCG), the trading firm created through Getco's $1.4 billion bailout acquisition of Knight Capital, is in the process of reviewing all of its London headcount of nearly 200 employees, as it integrates the two trading firms.
KCG Europe in recent weeks has initiated a consultation process with its London employees, which may result in layoffs, the people said. As the process is in its early stages, no decision has been made on which departments would be affected, or indeed if anyone will leave the firm, one person said.
The staffing review comes as KCG's management team begins to integrate the operations of the Chicago-based high- frequency trading specialist Getco and Knight's institutional and retail brokerage business. KCG's London staff elected other employees to represent them in the process this week, one person said. Potential cuts likely would focus on overlapping functions, such as human resources, compliance and finance, one person close to the business said.
KCG's executives are likely to steer the firm away from Getco's high-speed proprietary trading roots, and build on Knight's institutional and retail client business.
The acquisition, which closed in July, followed a massive trading error at Knight in August 2012 that cost the firm $ 461.1 million and forced it to seek rescue from a group of financial firms, including Getco.
In July, Tom Joyce, Knight's former chief executive, left KCG, while earlier this month the firm revealed in a U.S. regulatory filing that three of its senior exchange-traded fund managers would leave the group, costing the firm around $15 million in severance.
KCG Europe recently finalized the composition of a new board, one person close to the business said. It will comprise: Robert Smith, KCG's European head; Albert Maasland, KCG's global head of execution services and venues; John McCarthy, the group's general counsel; Steven Bisgay, KCG's chief financial officer; and John Holland, a nonexecutive director. A further nonexecutive is likely to be appointed, the person said.
Three legacy Knight employees--Reginald Browne, Eric Lichtenstein and Darren Taube--were to depart this week. The firm "made the decision to end the employment of the managers of its listed derivatives group," according to a filing with the Securities and Exchange Commission.
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