Cantor Names Head Of Business Targeting Retail Order Flow
March 12 2012 - 10:44AM
Dow Jones News
Cantor Fitzgerald & Co. has snared an executive from Knight
Capital Group (KCG) to help build its retail equity broker-dealer
business.
James P. Smyth joined Cantor as managing director and head of
the business, which Cantor recently launched to attract retail
orders from other broker dealers. Smyth will work closely with
Peter Gallo, Cantor's head of electronic trading, the firm said in
a statement.
Smyth was previously executive vice president at Knight Equity
Markets, where he oversaw the firm's retail and fixed income
broker-dealer business.
Cantor, Goldman Sachs Group Inc. (GS), and Credit Suisse (CS)
have been building this business, also called wholesale
market-making, to attract more order flow from brokerages like TD
Ameritrade Holding Corp. (AMTD) and Charles Schwab Corp.
(SCHW).
Wholesalers reap profits by using automated trading strategies
to quickly turn over the positions for small gains. Payments from
wholesalers to brokerage firms are seen keeping trading commissions
low for retail customers.
It is an area that has been dominated by Knight, UBS AG (UBS),
E*Trade Financial Corp. (ETFC), Citigroup (C) and hedge fund
Citadel LLC.
-By Liz Moyer, Dow Jones Newswires; 212-416-2512;
liz.moyer@dowjones.com
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