Brexit impacts KCG’s trading sales; new CTO appointed

KCG announced the appointment of Mike Blum as new CTO, amid falling trading sales following Brexit.

KCG’s global execution services business suffered a dip in revenues in the second quarter this year compared to the first, as the EU referendum in June hit its trading activity. 

Sales dropped 11% in the global execution business unit, compared to the first quarter this year, despite KCG BondPoint setting a quarterly record.

KCG BondPoint’s average daily fixed income par value traded was calculated at just over $203 million, compared to $138 million in the second quarter last year.

The second quarter earnings report said: “institutional trading activity was tempered in anticipation of the June Federal Open Market Committee meeting and the "Brexit" referendum in the UK, affecting US and European equity market volumes.”

Chief executive officer at KCG, Daniel Coleman explained: “The subdued institutional trading activity affected KCG Institutional Equities in both algorithmic trading and sales trading.

“KCG BondPoint set another new record for trade volumes in part on the strength of recent market share gains in municipals.”

KCG also announced the appointment of Mike Blum as the firm’s new chief technology officer.

Blum joined KCG in January as global head of client technology, and is succeeding Jon Ross who is retiring.

Coleman concluded: “Despite relatively poor market conditions for most of the second quarter, KCG produced reasonable financial results.”

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