KCG Holdings has agreed to sell its futures execution and clearing business to Wedbush Securities in order to focus on other areas of its business.
Despite losing the division, KCG maintains it will still engage in futures market making and will also focus on agency execution and trading venues.
Knight Capital acquired KCG Futures, then named Penson Financial Services, in May 2012 from Penson Worldwide.
"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,” said Daniel Coleman, chief executive officer, KCG Holdings.
“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.”
For Wedbush Securities, the acquisition will significantly increase its presence in the futures industry with the additional clearing and execution capabilities.
According to a statement, it is anticipated that existing KCG staff will continue their current roles.
“We are very excited to add a tremendous team from KCG to our organisation,” said Andrew Koslow, senior vice president of Wedbush Securities. “Their leadership position, diverse client base and shared commitment to superior client service made this an excellent fit as we build upon our services in this sector.
“The acquisition, our second this year, demonstrates our commitment to increasing our presence in the futures industry.”
The deal is expected to be completed by the end of 2014.