New York Post

Party at Cantor Fitz! Come over, KCG bigs

- By JOSH KOSMAN and KEVIN DUGAN

KCG Holdings, the high-frequency trading firm that nearly imploded almost four years ago, is losing three high-profile executives to investment bank Cantor Fitzgerald, The Post has learned.

The Jersey City, NJ, brokerage is expected to lose industry veterans Michael Strashnov, the head of customer trading technology; Joseph Pl- effner, a director in equity trading; and technologi­st Menashe Cohen, sources close to the situation said.

The defections to Cantor come just days after stock exchange wannabe IEX, which is awaiting government approval later this month, poached KCG’s Eric Stockland, an expert on high-frequency trading.

KCG declined comment. Cantor did not return calls.

Meanwhile, Reuters reported May 10 that the Department of Justice was investigat­ing the market-making arms of KCG and Citadel.

KCG, formerly known as Knight Capital Group, made Wall Street headlines in August 2012, after computer glitches led the company to lose more than $440 million in about 45 minutes. The three new hires worked in the group responsibl­e for the glitch.

Rival brokerage Getco acquired the company four months later. Meanwhile, Cantor is bulking up. The investment bank in recent weeks hired former Jefferies health care banker Sage Kelly, who made headlines himself in late 2014, when his very nasty and public divorce played out in court. Kelly will serve as head of all of Cantor’s investment banking operation.

Meanwhile, Kelly is looking to woo former Jefferies colleagues, a source said.

Shares of KCG Holdings, a $1.2 billion market-cap company, rose 1.2 percent on Monday, to $14.02.

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