KCG acquisiton by Virtu completes

Deal creates major force in market making and technology.

Virtu Financial has completed its acquisiton of KCG as part of a $1.4 billion deal.

In a letter to clients today, Virtu CEO Doug Cifu, promised transparency, reliability and high levels of service would be the cornerstones of the new combined group.

Cifu added: “Going forward, you can expect the same exceptional client service, market access, and trading capabilities you are accustomed to receiving. We believe that our focus on technology and efficiency will only make the services you receive better and more attractive for your needs.”

The deal also sees KCG’s CEO, Phil Allison, will leave the company he had led since 2014. Greg Tusar, head of electronic execution and platforms at KCG, will also leave the firm.

KCG was formed on 1 July 2013 from the merger of Knight Capital Group and GETCO. The deal followed in the wake of a disastrous rogue algorithm event at Knight Capital which saw the firm lose $460 million. Knight Capital itself was founded in 1995 by former Chicago floor traders Stephen Schuler and Daniel Tierney.

Virtu has added two new members to its board. Bob Greifeld, former CEO of Nasdaq, has been appointed chairman, while Glenn Hutchins, co-founder of Silver-Lake Partners, joins as a board member.