Knight Capital Group, Inc. (NYSE Euronext:KCG) announced on Friday it had completed the sale of the U.S. institutional fixed income sales and trading team to Stifel Financial Corp. (NYSE:SF).
The sale of the bond-trading business was initially announced in February 2013. Knight Capital, Urban Financial Group’s parent company, has been exploring options to sell its non-core business assets, according to reports, but the sale of the sales and trading team does not involve Urban’s reverse mortgage arm.
As part of the deal, Stifel hired Knight’s European institutional fixed income sales and trading team. The combined U.S. and European teams will cover high-yield and investment-grade corporate bonds, asset-backed and mortgage-backed securities, and emerging markets, along with research in select sectors and names.
Stifel, along with five other companies, helped bail Knight out of financial turmoil and near-bankruptcy in 2012 following trading glitch that ultimately cost the company about $460 million.
The terms of the bond-trading team sale were not disclosed.
Written by Alyssa Gerace