UPDATE 1-KCG to sell forex trading platform Hotspot to BATS Global

miércoles 28 de enero de 2015 10:12 GYT

(Adds details, background)

Jan 28 (Reuters) - KCG Holdings Inc said it will sell its foreign exchange trading platform, KCG Hotspot, to BATS Global Markets for $365 million in cash.

Shares of KCG, which trades equities, fixed income, currencies and commodities through both voice and automated execution, were up about 3.1 percent at $12.35 premarket.

Hotspot caters to a broad group of trading participants, including institutions, dealers and retail broker clients.

Reuters exclusively reported earlier this month that BATS was in discussions to buy Hotspot.

BATS, the No. 2 U.S. stock market operator by volume, runs four U.S. stock exchanges, an options exchange and the biggest pan-European stock market.

KCG, which owns a 16.5 percent stake in privately held BATS, said in October it was exploring strategic options for Hotspot amid heightened regulatory pressures in the foreign exchange market.

Regulators in Britain are probing the $5 trillion-a-day foreign exchange market following allegations that bank traders used advance knowledge of client orders to try to manipulate foreign exchange benchmarks.

Forex markets have been volatile this month, following the Swiss National Bank's decision to remove a three-year-old cap on the value of the Swiss franc against the euro.   Continuación...