Overview
On January 12, 2000, the Company completed its merger with Arbitrade Holdings LLC ("Arbitrade"). Arbitrade is a technologically advanced options market maker and asset manager with operations in the U.S. and in Europe. The transaction, which was accounted for as a pooling of interests, resulted in a newly formed parent holding company that issued shares on a tax-free basis to holders of the Company's common stock and to the owners of Arbitrade.

Following the transaction, the Company and Arbitrade became subsidiaries of the new parent holding company, which assumed the name "Knight/Trimark Group, Inc." and became the publicly traded Nasdaq company under the same ticker symbol (NITE). Arbitrade's options market-making unit subsequently changed its name to "Knight Financial Products LLC."

For additional information on the transaction, see Supplementary Schedule I on page 50.