Dec 23 (Reuters) - Knight Capital Group Inc said it sold about 0.9 million of its 2.8 million Direct Edge Holdings LLC units and its interest in ISE Stock Exchange to the International Securities Exchange for $47.5 million.
The electronic trading services provider said it would recognize a pre-tax gain of about $50 million from the deal in its fourth-quarter results.
In August, stock trading venue Direct Edge said it will take control of the International Securities Exchange's ISE Stock Exchange.
Knight Capital said its stake in Direct Edge Holdings will be 19.9 percent, down from about 38 percent. U.S. regulations prohibit any single broker-dealer from owning 20 percent or more of an exchange.
(Reporting by Santosh Nadgir in Bangalore; Editing by Deepak Kannan) Keywords: KNIGHTCAPITAL/ (santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The electronic trading services provider said it would recognize a pre-tax gain of about $50 million from the deal in its fourth-quarter results.
In August, stock trading venue Direct Edge said it will take control of the International Securities Exchange's ISE Stock Exchange.
Knight Capital said its stake in Direct Edge Holdings will be 19.9 percent, down from about 38 percent. U.S. regulations prohibit any single broker-dealer from owning 20 percent or more of an exchange.
(Reporting by Santosh Nadgir in Bangalore; Editing by Deepak Kannan) Keywords: KNIGHTCAPITAL/ (santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.