(Bloomberg) — The founders of high-frequency trading pioneer Getco took a step toward selling almost 6 million shares of KCG Holdings Inc., the broker-dealer formed when their company saved a struggling brokerage.
Trusts and an investment firm tied to Daniel Tierney and Stephen Schuler set up programs letting the former Getco executives sell 3 million and 2.75 million KCG shares, respectively, during the next year. Both would retain millions of shares even if the plans were executed completely, according to Securities and Exchange Commission filings on Tuesday.
Tierney and Schuler formed Chicago-based Getco in 1999 and turned it into a trading powerhouse, using computers to automatically buy and sell stocks, futures and other assets. The companys profits eventually dwindled. In 2013, Getco bailed out Knight Capital Group Inc. by acquiring it, transforming primarily into a broker-dealer with clients rather than a proprietary trader buying and selling with its own money.
Although both Tierney and Schuler have shifted away from day-to-day responsibilities at the company, they sit on the board of directors at Jersey City, New Jersey-based KCG. Both also sold shares in 2014.
In an SEC filing, KCG said the plans let Tierney and Schuler diversify their investment portfolios and reduce the risk of over concentration in shares of the company.
The 5.75 million shares represent about 5 percent of KCGs total share count. KCG closed Tuesday at $12.41, near the record high of $12.49 set in March 2014.