Knight Trading Group is to cut six per cent of its US equities staff and implement a cost-cutting programme in response to the sustained downturn in the domestic securities markets.
News of the job losses coincides with the resignation of John Hewitt, Knight Securities president and co-head of global equities, and David Shpilberg, EVP, chief operating officer and chief technology officer of Knight Trading. Both men have left the company to "pursue other interests", says Knight in a brief statement.
Hewitt is being replaced by his deputy at global equities Athony Sanfilippo. A replacement for David Shpilberg has yet to be announced.
The company says the restructuring is being instituted in light of changing market conditions in the US equity business. Knight says it is currently "evaluating its cost structure and projects that facilitate equity trading", but refused to give further details.
"The recent implementation of the one-cent minimum price variation requires a period of adjustment for all market participants in the short term," says Kenneth Pasternak, chairman, CEO, and president of Knight Trading Group.