NEW YORK, Feb 21, 2007 (BUSINESS WIRE) — Leading trading and technology firms, Schonfeld Group Holdings, LLC and Lightspeed Holdings, LLC, today announced the two companies have signed a definitive agreement to merge their respective retail trading operations. The merger, which was first announced in the October 2006 letter of intent, creates one of the largest company’s solely dedicated to the active trader and small to mid-size hedge funds.
As a result of the transaction, the combined company, Lightspeed Professional Trading has emerged as the leading player in the active trading industry with approximately 100,000 trades a day and close to approximately $250 million in customer assets. The company trades approximately 2% of Nasdaq share volume. Lightspeed Holdings acquired the active trading business of E*TRADE Professional Trading, LLC and ETP Technologies, LLC from E*TRADE FINANCIAL Corporation in July last year. Steven Schonfeld, CEO of Schonfeld Group, commented, “Schonfeld Group has been the consolidator of the professional trading business, with the Lightspeed merger being our fourth in the last four years. With the combined Lightspeed and Schonfeld & Company management team we look forward to further consolidating the active trading industry and bringing new opportunities to the professional trading community.”
Lightspeed CEO Stephen Ehrlich added, “While working toward the signing of the definitive documentation, we have made significant changes to the Lightspeed system, which are already benefiting our retail customers. Lightspeed is also currently engaged in advanced discussions with small to mid-size hedge funds that recognize the value we can offer their business. We see great opportunity ahead of us.”
Early evidence of the value of the merger has been apparent in the benefits delivered to Lightspeed traders. Since Lightspeed’s January 2007 move to Schonfeld Group’s new data center in Great River, NY, Lightspeed traders have driven a 10 to 15 percent increase in volume and executions per order, as well as comparable increases in fill rates.
The merger is scheduled to close in mid-March. Stephen Ehrlich will remain Chief Executive Officer of Lightspeed Holdings, LLC while Andrew Actman, CEO of Schonfeld & Company, will be joining the Lightspeed management team.
About Schonfeld Group
With roots that date back to 1988 and one of the active trading industry pioneers, New York-based Schonfeld Group Holdings, LLC today includes businesses with leadership positions in proprietary trading, institutional brokerage services and retail trading. The company’s fast-growing asset management business includes a fund-of-funds and a multi-strategy hedge fund. Schonfeld traders routinely trade 2-4% of all the daily volume on the NYSE and Nasdaq stock markets. Stephen Ehrlich will remain Chief Executive Officer of Lightspeed Holdings, LLC while Andrew Actman, CEO of Schonfeld & Company, will be joining the Lightspeed management team.
About Lightspeed Holdings
Headquartered in New York City, Lightspeed Holdings operates through two wholly-owned subsidiaries: Lightspeed Technologies, LLC serves as the Company’s technology development subsidiary. Lightspeed develops and operates the Lightspeed Direct Market Access trading software application, the Lightsource real-time risk management application and the Middle Office Technology suite. Utilizing a number of proprietary technologies, Lightspeed offers real-time market data platforms and direct-access trading systems to broker-dealers, institutional entities and professional traders. Lightspeed Professional Trading, LLC operates as a fully disclosed introducing broker-dealer and NASD and NFA member. Lightspeed offers securities and direct access brokerage, trading and advanced order routing services to its customers utilizing Lightspeed’s software products.
SOURCE: Schonfeld Group Holdings, LLC
Sloane & Co. Darren Brandt, 212-446-1871 dbrandt@sloanepr.com Copyright Business Wire 2007
