Stifel Acquires Knight's Fixed Income and Trading Business

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Stifel Financial Corp announced it is acquiring Knight Capital Group. The St Louis based brokerage firm would be acquiring the fixed income sales and trading team of Knight, comprising one hundred individual employees. No terms were disclosed.

The US institutional fixed income sales and trading firm focuses on high yield and investment grade corporate bonds, both assets and mortgage based securities as well as research facilities for emerging markets and fixed income maters.

According to Stifel CEO Ron Kruszewski, the firm has shifted to consolidate the brokerage industry as a way to gain market share. Since Kruszewski's assumption to office, the company has undertaken a US$1.7 billion acquisition spree according to Bloomberg collated data.

He added, "Expanding our fixed-income business has been an initiative of ours." This ends the plight of Knight Capital after a flood of glitches and errant orders resulted in a US$450 million loss. This resulted in a bailout plan that included Getco and Stifel last August.

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