KNIGHT TRADING GROUP TO ACQUIRE STAKE IN
TRACK DATA CORPORATION
Knight and Track Also Sign Letter of Intent To Develop
Institutional Trading Platform
JERSEY CITY, New Jersey and NEW YORK, New York
(December 4, 2000) - Knight Trading Group, Inc. (Nasdaq: NITE)
and Track Data Corporation (Nasdaq: TRAC) today announced that
Knight has agreed to acquire one million shares of Track
common stock for $1.25 million and has received a three-year
option to acquire an additional two million shares of Track
stock for $3.5 million. The companies also announced today
that they have signed a non-binding letter of intent to
operate a joint venture that will cater to the trading needs
of institutional investors.
"We believe that the order management needs of institutional
investors are underserved by the order management systems
currently available in the securities marketplace," said
Kenneth D. Pasternak, Chairman, Chief Executive Officer and
President of Knight Trading Group. "Knight's joint venture
with Track, once finalized, will provide a front-end order
management system that will meet institutions' securities
order handling and routing needs. Knight will provide
liquidity and content to the new operation, while Track will
add functionality and control for the system's institutional
subscribers."
"We are very pleased that a well-recognized company such as
Knight believes in the value of our company and has decided to
make this investment," said Barry Hertz, Chairman and Chief
Executive Officer of Track Data. "Knight has been one of the
market makers to which we route myTrack traders' listed and
over-the-counter securities orders. We believe that the joint
venture will provide us with a great opportunity to expand our
online trading and market data system for institutions."
Knight is the liquidity center that offers superior execution
services to its broker-dealer and institutional clients in
over-the-counter (OTC) and listed equity securities, and in
equity options. In so doing, Knight helps its clients meet
their fiduciary obligation of obtaining best execution for the
securities orders that they place on behalf of their customers.
Knight also maintains an asset management business for
institutional investors and high net worth individuals through
Deephaven Capital Management.
Knight has the power to commit capital for market orders, and
also maintains one of the largest limit order books in the OTC
market. It is one of the largest destinations for stock orders
placed via the Internet. Knight traded 87 billion shares in the
first nine months of 2000, a volume behind only those posted by
Nasdaq and the New York Stock Exchange (NYSE). It is a charter
member of Fortune magazine's "e-50 Stock Index," an elite
collection of companies shaping the Internet-based economy.
Knight also is ranked by Forbes magazine as one of the 500 most
profitable public companies in the U.S. Ultimately, Knight
plans to enable the global trading village to trade all types of
equity securities and options at anytime, from anywhere in the
world. More information about Knight can be obtained at
www.knighttradinggroup.com.
Track Data Corporation is a New York-based financial services
company that provides real-time financial market data, news, and
research to institutional and individual investors through
dedicated telecommunication lines and the Internet. It also
disseminates news and third party database information from more
than 100 sources worldwide. Track has been a supplier of
electronically delivered financial information since 1981.
In addition to its market data products, Track offers myTrack, a
fully integrated, Internet-based online trading and market data
system. myTrack offers its users market access through PCs,
browser phones, and PDAs. More information about myTrack can be
obtained at mytrack.com or by calling 1-800-myTrack.
Track maintains more than a dozen offices worldwide with executive
offices located at 56 Pine Street, New York, New York 10005 and
at 95 Rockwell Place, Brooklyn, New York 11217.
TRACK DATA
Rafi Reguer
Director, Corporate Communications
718-260-4232, or rafi_reguer@tdc.com
KNIGHT
Margaret Wyrwas
Senior Vice President, Corp. Comm. & Investor Relations
201-557-6954, or mwyrwas@knight-sec.com
Chuck Dohrenwend
Manager, Corporate Communications
201-356-1753, or chuck_dohrenwend@knight-sec.com |
