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EX-99.3 - EX-99.3 - Virtu KCG Holdings LLCd294750dex993.htm
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8-K - FORM 8-K - Virtu KCG Holdings LLCd294750d8k.htm

Exhibit 99.2

KCG ANNOUNCES CONSOLIDATED EARNINGS OF $2.47

PER DILUTED SHARE FOR THE FOURTH QUARTER OF 2016

During the quarter, KCG repurchased 19.0 million shares and 8.1 million warrants

for $281.7 million, primarily as a result of a share exchange with General Atlantic

KCG’s book value rose to $20.20 per share,

tangible book value increased to $18.71 per share

NEW YORK, New York – January 19, 2017 – KCG Holdings, Inc. (NYSE: KCG) today reported consolidated earnings of $196.2 million, or $2.47 per diluted share, for the fourth quarter of 2016. Included in the fourth quarter pre-tax earnings of $309.9 million is a pre-tax gain of $331.0 million from the sales of substantially all shares of Bats Global Markets, Inc. (“Bats”) owned by KCG.

Select Financial Results

 

     ($ in thousands, except EPS)  
     4Q16      3Q16      4Q15  

Total Revenues

     580,542         208,532         264,036   

Trading revenues, net

     143,355         113,829         145,959   

Commissions and fees

     102,516         87,842         94,315   

Net Revenues(1)

     147,461         111,999         157,686   

Pre-tax earnings (loss)

     309,872         (27,974      (4,471

EPS

     2.47         (0.13      (0.03

 

(1) See Exhibit 4 for a reconciliation of Total revenues to Net revenues. Net revenues is a non-GAAP measure the company uses to measure its performance as well as make certain strategic decisions.

Fourth Quarter Highlights

 

    KCG recorded a pre-tax gain of $331.0 million from the sales of shares in Bats

 

    KCG Market Making increased market share of retail SEC Rule 605 U.S. equity share volume 5.0 percent year over year

 

    KCG Algorithmic Trading grew average daily U.S. equity share volume from the 25 largest U.S. asset managers 49.5 percent year over year

 

    KCG BondPoint set a new quarterly record for average daily fixed income par value traded with a 39.1 percent rise year over year

 

    KCG reduced total shares outstanding by 22 percent during the quarter

Daniel Coleman, Chief Executive Officer of KCG, said, “During the fourth quarter, we monetized a longstanding investment in Bats through a swap of substantially all of our stake for all KCG shares and warrants owned by General Atlantic. After the transaction plus additional open market purchases, KCG’s shares outstanding declined to 67.2 million from 86.2 million from the


prior quarter and the number of warrants outstanding decreased to 5.1 million from 13.2 million. Since the merger, KCG has returned a cumulative $835.7 million to equity stakeholders. Our focus on creating value for stockholders enabled KCG to increase tangible book value per share to $18.71 as of the end of 2016. From an operating perspective, revenues in the fourth quarter fell below our expectations reflecting the continuation of a difficult trading environment. However, a rise in revenues on an operating basis from the prior quarter reflects the improved market conditions starting in November.”

Full Year 2016

In 2016, KCG continued to distinguish itself as an emerging, independent, pure-play, technology-driven intermediary in liquid financial instruments. Growth in core segments of market making and agency-based trading outpaced market volumes. The firm undertook an initiative to re-engineer the trading architecture. KCG reduced the ratio of compensation to net revenues year over year to 42.2 percent. In addition, the firm returned $364.7 million to equity stakeholders through repurchases of shares and warrants during the year.

Mr. Coleman commented, “KCG’s long-term growth is aligned with profound, secular changes in technology, regulation and competition. We are concentrating on attaining scale to enable us to grow without creating significant costs. In the past year, we’ve undertaken a re-engineering of the trading architecture while managing revenues in a difficult operating environment. In 2017, we’re focused on returning our revenues to previous levels, changing our infrastructure and returning capital to shareholders when prudent.”

Market Making

The Market Making segment encompasses direct-to-client and non-client, exchange-based market making across multiple asset classes and is an active participant in all major cash, options and futures markets in the U.S., Europe and Asia. During the fourth quarter of 2016, the segment generated total revenues of $168.3 million and a pre-tax loss of $8.5 million.

In the fourth quarter of 2016, investors remained defensive at the outset and continued to reduce exposure to U.S. equities. A period of heightened trading activity around the U.S. election dissipated quickly. For the quarter, consolidated U.S. equity volume remained flat year over year while realized volatility declined and bid-ask spreads tightened. Despite continuing strong competition, KCG Market Making grew market share of retail SEC Rule 605 U.S. equity share volume by 5.0 percent to approximately 32.4 percent.

Mr. Coleman commented, “A predominantly one-way market carried over from the third quarter, which can prove difficult for quantitative trading models. The depressed market volatility, however, was a surprise given events. While the financial results for the quarter disappointed, KCG Market Making’s presence in the retail and broader U.S. equity market is as strong as ever. Additionally, revenue capture per U.S. equity dollar value traded returned to levels slightly above average in November and December.”

In the third quarter of 2016, the segment generated total revenues of $136.1 million and a pre-tax loss of $13.8 million.

In the fourth quarter of 2015, the segment generated total revenues of $168.2 million and a pre-tax loss of $5.1 million, which included charges related to asset writedowns of $14.2 million.


Select Trade Statistics: U.S. Equity Market Making

 

     4Q16      3Q16      4Q15  

Average daily dollar volume traded ($ millions)

     28,414         26,352         28,842   

Average daily trades (thousands)

     3,497         3,288         3,667   

Average daily shares traded (millions)

     6,472         3,768         4,698   

NYSE and NASDAQ shares traded

     1,000         949         922   

OTC Bulletin Board and OTC Market shares traded

     5,472         2,820         3,775   

Average revenue capture per U.S. equity dollar value traded (bps)

     0.83         0.67         0.77   

Global Execution Services

The Global Execution Services segment comprises agency execution services and trading venues. During the fourth quarter of 2016, the segment generated total revenues of $75.5 million and pre-tax income of $4.5 million.

In the fourth quarter of 2016, an upsurge in the major market indexes failed to generate meaningful institutional trading activity. Despite the market conditions, KCG Algorithmic Trading grew U.S. equity share volume among the 25 largest U.S. asset managers by 49.5 percent year over year. KCG MatchIt increased average daily U.S. equity share volume by 30.5 percent year over year. KCG BondPoint grew market share of corporate and municipal bond transactions under 250 bonds by 1.8 percent and 3.1 percent, respectively, year over year.

Mr. Coleman commented, “At the start of the quarter, institutional investors were mainly engaged in de-risking and fence-sitting. Despite flat consolidated U.S. volume year over year, KCG Algorithmic Trading increased share volume from strategic clients. Additionally, KCG BondPoint continued to integrate with institutional order management systems by launching on Bloomberg to provide terminal users with access to the electronic fixed income trading platform.”

In the third quarter of 2016, the segment generated total revenues of $63.7 million and a pre-tax loss of $0.4 million.

In the fourth quarter of 2015, the segment generated total revenues of $70.2 million and a pre-tax loss of $1.1 million, which included a writedown of goodwill of $0.9 million.

Select Trade Statistics: Agency Execution and Trading Venues

 

     4Q16      3Q16      4Q15  

Average daily KCG Institutional Equities U.S. equities shares traded
(millions)(1)

     228.7         206.4         238.4   

Average daily KCG BondPoint fixed income par value traded ($ millions)

     209.6         201.5         150.7   

 

(1) KCG Institutional Equities average daily U.S. National Market System (NMS) equity share volume represents trading on behalf of clients covering algorithmic trading and high touch sales trading in single stocks, ETFs and programs. In 2016, KCG modified the reporting of trading volumes within the Global Execution Services segment to remove internal volume generated by KCG trading desks and add volume from sales trading. Prior periods have been recast for this new presentation.

Corporate and Other

The Corporate and Other segment includes strategic investments and corporate overhead expenses. During the fourth quarter of 2016, the segment generated total revenues of $336.7 million and pre-tax income of $313.9 million. This includes a $331.0 million pre-tax gain from the sales of substantially all shares owned of Bats.

In the third quarter of 2016, the segment generated total revenues of $8.7 million and a pre-tax loss of $13.8 million.


In the fourth quarter of 2015, the segment generated total revenues of $25.6 million and pre-tax income of $1.8 million which included gains on sales and writedowns of investments of $19.8 million and $3.2 million, respectively and a $1.0 million writedown of an intangible asset.

Share Exchange

On November 17, 2016, KCG announced that it entered into a strategic transaction with General Atlantic. Under the terms of the transaction, KCG sold 8.9 million shares it owned of Bats in exchange for all of General Atlantic’s 18.7 million shares and 8.1 million warrants of KCG.

Financial Condition

As of December 31, 2016, KCG had $632.2 million in cash and cash equivalents and total outstanding debt of $454.4 million. KCG had $1.36 billion in stockholders’ equity, equivalent to a book value of $20.20 per share and tangible book value of $18.71 per share based on total shares outstanding of 67.2 million, including restricted stock units.

In addition to the transaction with General Atlantic, during the fourth quarter of 2016, KCG repurchased 0.3 million shares for approximately $3.7 million under the Company’s stock repurchase program.

KCG’s headcount was 952 full-time employees at December 31, 2016, compared to 981 at September 30, 2016.

Subsequent Events

Subsequent to the fourth quarter, on January 18, 2017, KCG’s Board of Directors authorized a program to repurchase up to a total of $150 million in shares of the Company’s outstanding Class A Common Stock (“Common Stock”) and warrants to purchase shares of Common Stock (“Warrants”), subject to compliance with the covenants contained in the Company’s debt indenture. This authority replaces and supersedes all previous board-granted authority. Under the program, the Company may repurchase shares or Warrants from time to time in open market transactions, accelerated stock buyback programs, tender offers, privately-negotiated transactions or by other means. Repurchases of shares may also be made under a Rule 10b5-1 plan. The timing and amount of repurchase transactions will be based on market conditions, share price, legal requirements and other factors. The program has no expiration date and may be suspended, modified or discontinued at any time without prior notice. There are no assurances that any repurchases of shares of Common Stock or Warrants may actually occur.

KCG announced today that its Board of Directors has appointed Peter Fisher, Colin Smith, Heather Tookes and Adrian Weller as Directors, effective immediately. KCG also announced that Rene M. Kern and John C. (Hans) Morris have informed the company that they will not be seeking reelection at the 2017 Annual Meeting of Stockholders. It is currently expected that 11 Directors will be nominated for election at KCG’s 2017 Annual Meeting of Stockholders, 10 of whom would be independent.

Conference Call

KCG will hold a conference call to discuss fourth quarter 2016 financial results starting at 9:00 a.m. Eastern Time today, January 19, 2017. To access the call, dial 888-812-8589 (domestic) or 913-312-0949 (international) and enter passcode 3024760. In addition, the call will be webcast at http://edge.media-server.com/m/p/pbtshm7s. Following the conclusion of the call, a replay will be available by selecting a number based on country of origin from a list posted at: https://replaynumbers.conferencinghub.com/index.aspx?confid=3402400&passcode=3402400 and entering passcode 3024760.

Additional information for investors, including a presentation of the fourth quarter financial results, can be found at http://investors.kcg.com.


About KCG

KCG is a leading independent securities firm offering investors a range of services designed to address trading needs across asset classes, product types and time zones. The firm combines advanced technology with specialized client service across market making, agency execution and venues and also engages in principal trading via exchange-based market making. KCG has multiple access points to trade global equities, fixed income, options, currencies and commodities via voice or automated execution. www.kcg.com

Certain statements contained herein and the documents incorporated by reference containing the words “believes,” “intends,” “expects,” “anticipates,” and words of similar meaning, may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These “forward-looking statements” are not historical facts and are based on current expectations, estimates and projections about KCG’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Any forward-looking statement contained herein speaks only as of the date on which it is made. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with: (i) the inability to manage trading strategy performance and sustain revenue and earnings growth; (ii) the receipt of additional payments from the sale of KCG Hotspot that are subject to certain contingencies; (iii) changes in market structure, legislative, regulatory or financial reporting rules, including the increased focus by Congress, federal and state regulators, the SROs and the media on market structure issues, and in particular, the scrutiny of high frequency trading, alternative trading systems, market fragmentation, colocation, access to market data feeds, and remuneration arrangements such as payment for order flow and exchange fee structures; (iv) past or future changes to KCG’s organizational structure and management; (v) KCG’s ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by KCG’s customers and potential customers; (vi) KCG’s ability to keep up with technological changes; (vii) KCG’s ability to effectively identify and manage market risk, operational and technology risk, cybersecurity risk, legal risk, liquidity risk, reputational risk, counterparty and credit risk, international risk, regulatory risk, and compliance risk; (viii) the cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings; (ix) the effects of increased competition and KCG’s ability to maintain and expand market share; (x) the relocation of KCG’s global headquarters from Jersey City, NJ to New York, NY; and (xi) KCG’s ability to complete the sale or disposition of any or all of the assets or businesses that are classified as held for sale. The list above is not exhaustive. Because forward looking statements involve risks and uncertainties, the actual results and performance of KCG may materially differ from the results expressed or implied by such statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, KCG also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein. Readers should carefully review the risks and uncertainties disclosed in KCG’s reports with the U.S. Securities and Exchange Commission (“SEC”), including those detailed in “Risk Factors” in Part I, Item 1A of KCG’s Annual Report on Form 10-K for the year ended December 31, 2015 and in Part II, Item 1A of KCG’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, “Legal Proceedings” in Part I, Item 3, under “Certain Factors Affecting Results of Operations” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7, in “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, and in other reports or documents KCG files with, or furnishes to, the SEC from time to time. This information should be read in conjunction with KCG’s Consolidated Financial Statements and the Notes thereto contained in its Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and in other reports or documents KCG files with, or furnishes to, the SEC from time to time.

CONTACTS

 

Sophie Sohn    Jonathan Mairs
Communications & Marketing    Investor Relations
312-931-2299    646-682-6403
media@kcg.com    investors@kcg.com


KCG HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

  Exhibit 1

 

     For the three months ended  
     December 31, 2016      September 30, 2016     December 31, 2015  
     (In thousands, except per share amounts)  

Revenues

  

Trading revenues, net

   $ 143,355       $ 113,829      $ 145,959   

Commissions and fees

     102,516         87,842        94,315   

Interest, net

     563         677        (429

Investment income and other, net

     334,108         6,184        24,191   
  

 

 

    

 

 

   

 

 

 

Total revenues

     580,542         208,532        264,036   
  

 

 

    

 

 

   

 

 

 

Expenses

       

Employee compensation and benefits

     72,436         49,006        67,823   

Execution and clearance fees

     75,941         71,995        66,613   

Communications and data processing

     39,220         36,733        36,003   

Depreciation and amortization

     22,775         21,876        25,077   

Payments for order flow

     15,175         13,845        14,464   

Collateralized financing interest

     10,958         10,693        8,746   

Occupancy and equipment rentals

     9,781         9,275        7,842   

Debt interest expense

     9,379         9,153        10,025   

Professional fees

     4,330         4,139        5,774   

Business development

     1,252         994        1,751   

Writedown of assets and other real estate related charges

     —           —          16,154   

Other

     9,423         8,797        8,235   
  

 

 

    

 

 

   

 

 

 

Total expenses

     270,670         236,506        268,507   
  

 

 

    

 

 

   

 

 

 

Income (loss) before income taxes

     309,872         (27,974     (4,471

Income tax expense (benefit)

     113,680         (16,760     (1,500
  

 

 

    

 

 

   

 

 

 

Net income (loss)

   $ 196,192       $ (11,214   $ (2,971
  

 

 

    

 

 

   

 

 

 

Basic earnings (loss) per share

   $ 2.51       $ (0.13   $ (0.03
  

 

 

    

 

 

   

 

 

 

Diluted earnings (loss) per share

   $ 2.47       $ (0.13   $ (0.03
  

 

 

    

 

 

   

 

 

 

Shares used in computation of basic earnings (loss) per share

     78,089         85,009        89,184   
  

 

 

    

 

 

   

 

 

 

Shares used in computation of diluted earnings (loss) per share

     79,358         85,009        89,184   
  

 

 

    

 

 

   

 

 

 

 

     For the years ended  
     December 31, 2016      December 31, 2015  
     (In thousands, except per share amounts)  

Revenues

     

Trading revenues, net

   $ 668,003       $ 803,181   

Commissions and fees

     391,419         376,673   

Interest, net

     1,625         (2,128

Investment income and other, net

     393,365         421,384   
  

 

 

    

 

 

 

Total revenues

     1,454,412         1,599,110   
  

 

 

    

 

 

 

Expenses

     

Employee compensation and benefits

     295,120         405,609   

Execution and clearance fees

     295,312         265,186   

Communications and data processing

     147,986         139,263   

Depreciation and amortization

     88,790         90,231   

Payments for order flow

     54,765         61,741   

Collateralized financing interest

     40,423         34,678   

Occupancy and equipment rentals

     37,875         30,128   

Debt interest expense

     37,216         40,291   

Professional fees

     19,827         27,055   

Business development

     5,324         8,479   

Debt extinguishment charges

     —           25,006   

Writedown of assets and other real estate related charges

     —           56,642   

Other

     35,346         34,839   
  

 

 

    

 

 

 

Total expenses

     1,057,984         1,219,148   
  

 

 

    

 

 

 

Income before income taxes

     396,428         379,962   

Income tax expense

     140,731         130,858   
  

 

 

    

 

 

 

Net income

   $ 255,697       $ 249,104   
  

 

 

    

 

 

 

Basic earnings per share

   $ 3.03       $ 2.48   
  

 

 

    

 

 

 

Diluted earnings per share

   $ 2.97       $ 2.42   
  

 

 

    

 

 

 

Shares used in computation of basic earnings per share

     84,405         100,437   
  

 

 

    

 

 

 

Shares used in computation of diluted earnings per share

     86,160         102,922   
  

 

 

    

 

 

 


KCG HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands)

(Unaudited)

     Exhibit 2   

 

     December 31, 2016     December 31, 2015  

ASSETS

    

Cash and cash equivalents

   $ 632,234      $ 581,313   

Cash and cash equivalents segregated under federal and other regulations

     3,000        3,000   

Financial instruments owned, at fair value:

    

Equities

     2,343,033        2,129,208   

Debt securities

     175,502        136,387   

Listed options

     19,100        178,360   

Other financial instruments

     30        445   
  

 

 

   

 

 

 

Total financial instruments owned, at fair value

     2,537,665        2,444,400   

Collateralized agreements:

    

Securities borrowed

     1,688,222        1,636,284   

Receivable from brokers, dealers and clearing organizations

     834,444        681,211   

Fixed assets and leasehold improvements, less accumulated depreciation and amortization

     151,664        94,858   

Investments

     30,979        98,943   

Goodwill and Intangible assets, less accumulated amortization

     100,319        100,471   

Deferred tax asset, net

     109,861        151,225   

Assets of businesses held for sale

     8,194        25,999   

Other assets

     164,168        222,831   
  

 

 

   

 

 

 

Total assets

   $ 6,260,750      $ 6,040,535   
  

 

 

   

 

 

 

LIABILITIES & EQUITY

    

Liabilities

    

Financial instruments sold, not yet purchased, at fair value:

    

Equities

   $ 1,821,957      $ 1,856,171   

Debt securities

     211,222        105,340   

Listed options

     12,961        151,893   
  

 

 

   

 

 

 

Total financial instruments sold, not yet purchased, at fair value

     2,046,140        2,113,404   

Collateralized financings:

    

Securities loaned

     372,631        463,377   

Financial instruments sold under agreements to repurchase

     1,127,775        954,902   
  

 

 

   

 

 

 

Total collateralized financings

     1,500,406        1,418,279   

Payable to brokers, dealers and clearing organizations

     518,363        273,805   

Payable to customers

     23,580        17,387   

Accrued compensation expense

     132,406        154,547   

Accrued expenses and other liabilities

     156,828        134,026   

Income taxes payable

     71,391        —     

Debt

     454,353        484,989   
  

 

 

   

 

 

 

Total liabilities

     4,903,467        4,596,437   
  

 

 

   

 

 

 

Equity

    

Class A Common Stock

     903        1,060   

Additional paid-in capital

     1,439,412        1,436,671   

Retained earnings

     192,064        192,120   

Treasury stock, at cost

     (277,343     (186,103

Accumulated other comprehensive income

     2,247        350   
  

 

 

   

 

 

 

Total equity

     1,357,283        1,444,098   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 6,260,750      $ 6,040,535   
  

 

 

   

 

 

 


KCG HOLDINGS, INC.

PRE-TAX EARNINGS (LOSS) BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

  Exhibit 3

 

     For the three months ended  
     December 31, 2016     September 30, 2016     December 31, 2015  

Market Making

      

Revenues

   $ 168,323      $ 136,107      $ 168,227   

Expenses

     176,814        149,883        173,359   
  

 

 

   

 

 

   

 

 

 

Pre-tax loss

     (8,491     (13,776     (5,132
  

 

 

   

 

 

   

 

 

 

Global Execution Services

      

Revenues

     75,510        63,713        70,221   

Expenses

     71,009        64,152        71,336   
  

 

 

   

 

 

   

 

 

 

Pre-tax earnings (loss)

     4,501        (439     (1,115
  

 

 

   

 

 

   

 

 

 

Corporate and Other

      

Revenues

     336,709        8,712        25,588   

Expenses

     22,847        22,471        23,813   
  

 

 

   

 

 

   

 

 

 

Pre-tax earnings (loss)

     313,862        (13,759     1,775   
  

 

 

   

 

 

   

 

 

 

Consolidated

      

Revenues

     580,542        208,532        264,036   

Expenses

     270,670        236,506        268,507   
  

 

 

   

 

 

   

 

 

 

Pre-tax earnings (loss)

   $ 309,872      $ (27,974   $ (4,471
  

 

 

   

 

 

   

 

 

 

 

     For the years ended  
     December 31, 2016      December 31, 2015  

Market Making

     

Revenues

   $ 775,173       $ 884,858   

Expenses

     681,441         760,829   
  

 

 

    

 

 

 

Pre-tax earnings

     93,732         124,029   
  

 

 

    

 

 

 

Global Execution Services

     

Revenues

     283,756         667,723   

Expenses

     271,748         298,766   
  

 

 

    

 

 

 

Pre-tax earnings

     12,008         368,957   
  

 

 

    

 

 

 

Corporate and Other

     

Revenues

     395,483         46,529   

Expenses

     104,795         159,553   
  

 

 

    

 

 

 

Pre-tax earnings (loss)

     290,688         (113,023
  

 

 

    

 

 

 

Consolidated

     

Revenues

     1,454,412         1,599,110   

Expenses

     1,057,984         1,219,148   
  

 

 

    

 

 

 

Pre-tax earnings

   $ 396,428       $ 379,962   
  

 

 

    

 

 

 


KCG HOLDINGS, INC.

RECONCILIATION OF TOTAL REVENUES TO NET REVENUES    

(In thousands)    

(Unaudited)    

     Exhibit 4   

 

    For the three months ended  
    December 31, 2016     September 30, 2016     December 31, 2015  

Total revenues per Consolidated Statements of Operations

  $ 580,542      $ 208,532      $ 264,036   

Less:

     

Execution and clearance fees

    75,941        71,995        66,613   

Payments for order flow

    15,175        13,845        14,464   

Collaterlaized financing interest

    10,958        10,693        8,746   

Gain from the sale of a portion of the Company’s investment in Bats

    331,007        —          —     

Gain on sale of investments

    —          —          19,751   

Writedown of investments

    —          —          (3,224
 

 

 

   

 

 

   

 

 

 

Net revenues

  $ 147,461      $ 111,999      $ 157,686   
 

 

 

   

 

 

   

 

 

 

 

     For the years ended  
     December 31, 2016      December 31, 2015  

Total revenues per Consolidated Statements of Operations

   $ 1,454,412       $ 1,599,110   

Less:

     

Execution and clearance fees

     295,312         265,186   

Payments for order flow

     54,765         61,741   

Collaterlaized financing interest

     40,423         34,678   

Gain from the sale of a portion of the Company’s investment in Bats

     364,404         —     

Gain on sale of KCG Hotspot

     —           385,026   

Gain on sale of investments

     —           19,751   

Writedown of investments

     —           (3,224
  

 

 

    

 

 

 

Net revenues

   $ 699,508       $ 835,952