The practice among stock exchanges of paying rebates to some traders puts long-term investors at a disadvantage and the Securities and Exchange Commission should consider eliminating the system, RBC Capital Markets said.
Getco LLC, the automated trading firm that’s the second-largest New York Stock Exchange market maker by number of securities managed, said it promoted Daniel Coleman to chief executive officer a year and a half after he joined the firm from UBS AG.
Securities regulators fined Knight Capital Americas LLC $12 million for the trading malfunction that roiled the U.S. stock market in August 2012, saying the firm ignored dozens of error messages before its computers bombarded exchanges with millions of unintended orders.
Getco LLC, publicly traded for the first time as KCG Holdings Inc. after acquiring Knight Capital Group Inc., will see its focus on high-frequency trading reduced by the merger, according to the chief executive officer.
Knight Capital Group Inc. capped its biggest rally in nine years after getting takeover offers from Getco LLC and Virtu Financial LLC, setting up a bidding war that may end its 17-year history as an independent company.
Thomas Joyce, who built Knight Capital Group Inc. into one of the biggest U.S. market making firms only to see it driven to the brink of bankruptcy and then into a suitor’s arms, is leaving the company.