Knight Launches Oasis Small- and Mid-Cap Algorithm

JERSEY CITY, N.J., June 24  /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (NASDAQ:NITE) today announced the introduction of Oasis, a smart order execution algorithm that is tailored specifically to source small- and mid-cap liquidity. Oasis is Knight's newest addition to its EdgeTrade Algorithmic Suite.

Using innovative liquidity sourcing logic, Oasis is designed to optimally handle the trading obstacles typically associated with thin and difficult-to-trade names. Knight has an unparalleled depth in small-and mid-cap securities with market share of 38.9% in stocks that trade less than 2 million shares per day.* Knight is a leading source of off-exchange liquidity and is #1 in share volume for all Listed and NASDAQ securities.**

"Our clients have expressed that effectively executing small- and mid-cap stocks is an important source of alpha for them. They need a specialized strategy to handle the complexities of navigating through intricate trade scenarios rather than a one-size-fits-all approach. We created Oasis as a next generation algorithmic strategy in recognition of the fact that there are increased overall costs and risks associated with trading small- and mid-cap stocks, such as higher volatility, less liquidity and wider spreads," said Joe Wald, Managing Director at Knight. "Oasis leverages Knight's trading expertise and premiere liquidity position in this particular equities category."

Oasis and all of the algorithms in the EdgeTrade Algorithmic Suite are powered by FAN(TM), Knight's smart order execution algorithm. Smart order execution leverages real-time and historical data to help clients execute orders by seeking out available liquidity among fragmented displayed and non-displayed markets.

  These solutions include:
  --  FAN - Sweeps/posts an order simultaneously to public liquidity and
      dark pools, dynamically allocating the order to destinations where
      liquidity is located
  --  Covert(TM) - Posts and fills orders in dark pools exclusively
  --  Sumo(TM) - An aggressive strategy for quickly filling an order
      designed to reduce information leakage and minimize market impact



FAN also is incorporated into various benchmark and participation algorithms:

  --  Arrival Price
  --  VWAP
  --  TWAP
  --  Smart VTrack
  --  Target Close



Clients can access Oasis and the entire EdgeTrade Algorithmic Suite through Knight Direct(R), Knight's multi-asset class execution management system, as well as through a number of third party execution and order management systems. The EdgeTrade Algorithmic Suite and Knight Direct EMS are offered through Knight Direct, LLC, a subsidiary of Knight Capital Group and member SIPC.

Interested clients should contact Joe Wald to learn more about Knight's algorithmic offering at 201.479.2335 or .

  * Source: Bloomberg May 2009
  ** Source: AutEx YTD May 2009

  About Knight


Knight Capital Group, Inc. (NASDAQ:NITE) is a leading financial services firm that provides electronic and voice access to the global capital markets across multiple asset classes for buy-side, sell-side and corporate clients. In Global Markets, we provide market access and trade execution services in nearly every U.S. equity security and a large number of global equities and fixed income, foreign exchange, futures and options. Our approach to trading combines deep liquidity with robust trading technology and capital facilitation, when necessary, to deliver high quality trade executions consistent with client defined measures. Our Corporate segment invests in strategic, financial services-oriented opportunities, allocates, deploys and monitors all capital and maintains all corporate overhead expenses. Our Asset Management segment is reported as a discontinued operation as of March 31, 2009. More information about Knight can be found at http://www.knight.com/.

Certain statements contained herein may constitute "forward-looking statements" within the meaning of 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 the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. 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 costs, integration, performance and operation of businesses recently acquired, or that may be acquired in the future, by the Company, and (ii) the closing of the sale of substantially all of the assets of the Asset Management business and costs and expenses associated with the Company's exit from the Asset Management business. Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company 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 the Company's reports with the U.S. Securities and Exchange Commission (SEC), including, without limitation, those detailed under the headings "Certain Factors Affecting Results of Operations" and "Risk Factors" in the Company's Annual Report on Form 10-K for the year-ended December 31, 2008, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. This information should also be read in conjunction with the Company's Consolidated Financial Statements and the Notes thereto contained in the Company's Annual Report on Form 10-K for the year-ended December 31, 2008, and in other reports or documents the Company files with, or furnishes to, the SEC from time to time. 

DATASOURCE: Knight Capital Group, Inc.



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