This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Knight Capital Group Announces Agreement To Acquire The Futures Division Of Penson Financial Services, Inc.

Stocks in this article: KCG PNSN

JERSEY CITY, N.J., May 29, 2012 /PRNewswire/ --  Knight Capital Group, Inc. (NYSE Euronext: KCG) today announced that it has agreed to acquire certain assets and liabilities of Penson Futures, the futures division of Penson Financial Services, Inc., a subsidiary of Penson Worldwide, Inc. (NASDAQ: PNSN). The terms of the acquisition call for $5 million in cash, approximately half of which covers exchange memberships and equipment, plus potential earn-outs based on financial results in the three-year period following the close.

Penson Futures provides futures execution, clearing and custody services to facilitate transactions among brokers, institutions and non-clearing Futures Commission Merchants (FCMs) on major U.S. and European futures and options exchanges. Penson Futures also offers risk management and consultation services and operates an electronic futures trading platform for professional traders and individual investors.

"Futures trading is increasingly moving toward an electronic, exchange-based model," said Tom Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "With the acquisition of Penson Futures, Knight fills a strategic gap in the client offering with a top 30 FCM in the U.S. We're excited to extend our offering to include futures with a range of products from physical commodities to financial instruments by bringing aboard a quality team and applying our own considerable strengths."

"The Knight acquisition of Penson Futures provides a powerful combination of financial strength, technical expertise and futures market knowledge," said John Streich, Chief Executive Officer of Penson Futures. "This combination brings the futures industry exactly what they need at this time - strong independent futures execution and clearing."

Penson Futures is currently a member of the Chicago Board of Trade, the Chicago Mercantile Exchange, the Kansas City Board of Trade, NYSE Euronext LIFEE, the Minneapolis Grain Exchange, NYMEX, COMEX, ICE Futures US, ICE Clear Europe, NYSE LIFFE, One Chicago and LCH.Clearnet.

The acquisition, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the second quarter of 2012. Upon the close of the acquisition, the FCM will operate as a division of Knight Execution & Clearing Services LLC. Penson expects to transfer client assets within one day of the close. The acquisition is expected to be earnings neutral in year one and modestly accretive thereafter.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs