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Retired

Registered: Jun 2004
Posts: 352

08-02-12 10:12 PM

Fallout from Knight’s technology missteps could also bring pressure to bear on similar public companies. One is Greenwich, Conn.-based Interactive Brokers Group Inc., which runs both a discount brokerage business and a market-making arm that is similar to Knight’s trading division.

“Interactive Brokers should split up their market-making and brokerage businesses,” said Justin Hughes, a portfolio manager with Philadelphia Financial, a hedge fund firm. “The market-maker is a huge potential risk, why have that associated with your brokerage?”

http://blogs.wsj.com/deals/2012/08/...al-environment/

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1245

Registered: May 2012
Posts: 522

08-02-12 10:31 PM

Never happen. The purpose of forming IB was to provide order flow to the trading operation. They only work together. They are worth less as stand alone companies.

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Retired

Registered: Jun 2004
Posts: 352

08-02-12 10:39 PM

Things looking grim for KCG. Knight Fighting for Survival As Several Big Clients Defect -

http://www.cnbc.com/id/48469867

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Cdntrader

Registered: Mar 2001
Posts: 3427

08-02-12 11:11 PM

Quote from Retired:

Things looking grim for KCG. Knight Fighting for Survival As Several Big Clients Defect -

http://www.cnbc.com/id/48469867

NITE is an evil POS that needs to die. Their fills back in the bubble days were criminal.

Good riddance.

imho

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atticus

Registered: Mar 2007
Posts: 12635

08-02-12 11:13 PM

Quote from 1245:

Never happen. The purpose of forming IB was to provide order flow to the trading operation. They only work together. They are worth less as stand alone companies.

You just made Def's head explode.

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southall

Registered: Mar 2010
Posts: 388

08-02-12 11:51 PM

IB currently has around 4 billion in cash in the bank, a 400 million loss would be only a 10% hit.

I cant remember exactly the figure, but Peterfly once mentioned what the daily loss limit for the market making operation was, and it was tiny compared to how much cash they have.
They would have to blow the daily loss limit x100 to wipe out all the equity they have.

Now if Peterfly ever took most of the cash out as a dividend then it might be time to worry.

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