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November 1, 2012

Bisgay to Head Knight Operations

By Tom Steinert-Threlkeld

Knight Capital has consolidated its financial, technological and general operations under a single executive and moved its top technologist into a new role.

Executive vice president and chief financial officer Steven Bisgay is now also chief operating officer.

Executive vice president Steven Sadoff, who had been global head of operations and technology, is instead being charged with building Knight's correspondent clearing, prime brokerage and futures businesses.

The moves come in the wake of the Aug. 1 trading debacle, in which a flood of erroneous orders that hit national exchanges were caused by a "large software bug" at Knight. The flood lasted for nearly 45 minutes and cost Knight $457.6 million.

Sadoff led the build-out of Knight's trading floor technology and networking infrastructure.

Knight said it started an "internal and external search" for a chief technology officer who will report to Bisgay. The firm also retained IBM to review the technical systems it has in place.

Managing director Brian Strauss also has been installed as the company's newly created chief risk officer. He will manage the firm's credit, market and operational risks.

Bisgay will oversee the firm's technology, operations, finance, accounting, risk management, business development, staff development and investor relations.

"After careful consideration, we concluded it was best to consolidate responsibility for all financial, operational and technology risk under a single executive," chief executive Tom Joyce said in announcing the changes.

Separately, Knight also named Brendan McCarthy the new head of its Knight Direct algorithmic trading unit. He replaces Joe Wald, who has left the firm.

McCarthy had been business manager and head of relationship management for Knight Direct. He will report to senior managing director David Lehmann, head of electronic execution services.


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