Knight Trading Group, Inc. - Introduction

Introduction

Newport Tower
525 Washington Boulevard
Jersey City, New Jersey 07310
U.S.A.

Telephone: (201) 222-9400
Toll Free: (800) 544-7508
Web site: http://www.knighttradinggroup.com

Public Company
Incorporated: 1995 as Roundtable Partners LLC
Employees: 933
Sales: $670 million (2003)
Stock Exchanges: NASDAQ
Ticker Symbol: NITE
NAIC: 523120 Securities Brokerage

Based in Jersey City, New Jersey, Knight Trading Group, Inc. is a trade execution specialist, primarily handling stock trading for securities listed on the NASDAQ, OTC Bulletin Board, and Pink Sheets, but also New York Stock Exchange and American Stock Exchange listed securities as well. Knight "makes a market," a function that has been at the heart of stock trading since 1792 when the open auction concept for each stock trade was introduced. Specialists make a market by matching up sellers and buyers at a fixed price, a service for which they receive a commission. Specialists like Knight also step in to buy or sell stocks from their own accounts when there is an imbalance between sellers and buyers. Because of this unique position in the stock market, possessing advance knowledge about the intentions of buyers and sellers, specialists are in a highly advantageous position, one that has been open to abuse. Knight's conduct has come under scrutiny in recent years, leading to National Association of Securities Dealers (NASD) fines for trading violations and Securities and Exchange Commission (SEC) charges that led to a settlement agreement in 2004. In addition to its Equity Markets business segment, Knight also provides asset management services for individuals and institutions. Knight is a public company trading on the NASDAQ.