E*Trade Financial Corp would be selling market-making arm G1 Execution Services to Susquehanna International Group in a deal worth USD 75 million. As part of the agreement, E*Trade pledged to give 70% of customer equity orders to the unit in five years.
G1 Execution Services was the subject of a regulatory inquiry two months ago. According to E*Trade, the Financial Industry Regulatory Authority was investigating how G1 Execution and its E*Trade Securities division was routing customer orders. In July, investors welcomed the news about E*Trade's plans to look for a buyer. The news, coupled with better-than-expected earnings caused its stock to rise 7.9%. That was its biggest increase in two years.
In a statement, E*Trade Chief Executive Officer Paul Idzik said the sale of G1 Execution would allow them to focus their time and attention on their core business. It would also enable them to focus on providing better services for their customers. E*Trade is engaged in the business of providing online brokerage products and services to retail investors.
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