Reggie Browne and at least two senior managers would be leaving KCG Holdings Inc. Browne is a known gatekeeper to the exchange-traded funds (ETF) market. In a listing filed with regulators today, KCG said that managers of its "listed derivatives group" would be parting ways with the company as KCG has ended its employment agreement with the latter. The filing also said that Browne, Eric Lichtenstein and Darren Taube were to receive a USD15 million severance package in the third quarter. KCG spokesperson Sophie Sohn confirmed that Browne, Lichtenstein and Taube would be leaving the New Jersey-based KCG.
KCG was formed after Knight Capital Group Inc. was taken over by Getco LLC. Browne, Lichtenstein and Taube, after their stint co-heading ETF trading with Newedge Group, joined Knight along with ten of their colleagues in June 2009. Browne and team had built Knight's desk into the biggest contracted ETF market maker. According to New York Stock Exchange Euronext head of trading and listing services Laura Morrison, Knight's desk acted as lead market maker for one-third of all New York bourse-listed ETFs as of June this year.
Two sources told Bloomberg that the reason for Browne and his team leaving KCG was because of a disagreement with the terms of the renegotiated contract. Bloomberg was unable to receive a response from Browne for comment.
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