(Updates with comment from NYSE Euronext official in fourth paragraph.)
Sept. 4 (Bloomberg) -- Reggie Browne, the head of KCG Holdings Inc.’s exchange-traded funds operation, is leaving the biggest lead market maker for ETFs with at least two senior managers.
KCG, formed after a trading malfunction in August 2012 cost Knight Capital Group Inc. its independence, said in a regulatory filing today that it had ended its employment agreement with managers of its “listed derivatives group.” The managers leaving included Browne, Darren Taube and Eric Lichtenstein, according to Sophie Sohn, a spokeswoman for Jersey City, New Jersey-based KCG.
Browne, Taube and Lichtenstein joined Knight from Newedge Group in June 2009, where they had been co-heads of ETF trading, bringing 10 colleagues with them. The team built Knight’s desk into the biggest contracted market maker for ETFs, acting as so- called lead market maker for a third of all ETFs listed on the New York Stock Exchange as of June 2013, according to Laura Morrison, head of trading and listing services for ETFs at NYSE Euronext.
“Reggie is very supportive of new and innovative products coming to the market,” Morrison said in an interview. “He’s often willing to step up first” to back a proposed ETF, she said.
--Editors: Christian Baumgaertel, Jeff Sutherland