KNIGHT | AR 2002
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View Value-Added Proposition

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Knight uses four main components – Coverage, Capital, Connectivity and Content – to help define and drive its business with the ultimate goal of providing the best products and services in the industry.
 
   
COVERAGE

Knight endeavors to provide the most comprehensive trade execution services and products to its broker-dealer and institutional clients. Knight has solidified its sales and trading teams to better serve institutions from West Coast to East Coast. Meanwhile, Knight’s broker-dealer business is both pursuing improved penetration of regional and New York full-service firms and going after more business from online brokers, program trading desks and options market makers.

CAPITAL

When Knight receives a client order, it taps a deep liquidity pool to execute that order. But when liquidity isn’t available, Knight steps forward and does what ECNs can’t do. Knight takes risk on behalf of the client. Knight can commit its own capital to make sure the trade happens. Knight calls this “enhanced liquidity.” Clients call it “getting on the tape.”

CONNECTIVITY

With links to all exchanges and ECNs, Knight’s access to liquidity is expansive. If a client requires liquidity that’s not readily available, Knight’s expert staff uses sophisticated systems to go out and get it. This ability to access the other side of the trade is a testament to Knight’s scale and the talent of its technology team – who are already at work on the next generation of institutional trading technology.

CONTENT

Knight makes every effort to aggregate resources to help clients make the best decisions when it comes to executing their trades effectively. The cash equity trading floor has been reorganized along industry sectors. Sectorization allows traders to gather and share sector- and stock-specific data in order to guide clients as they move in and out of the market.
The “Four Cs” are applied differently across the company’s product lines, but they are a common bond to connect Knight’s value-added proposition to its clients: institutions and broker-dealers.