Related Parties

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Parties

Related Parties

As a result of the August 2012 Recapitalization, three investors held more than 10% of the outstanding Knight Common Stock as of June 30, 2013 and therefore are considered related parties.

The Company interacts with each of these three investors, or their affiliates, as part of its normal day-to-day operations. It earns revenues, incurs expenses and maintains balances with these related parties or their affiliates. As of the date and period indicated below, the Company had the following balances and transactions with the related parties or their affiliates as follows (in thousands):

Statement of Operations	For the three months ended June 30, 2013		For the six months ended June 30, 2013
Revenues
Commissions and fees	$	587	$	773
Interest, net	86		86
Total revenues from related parties	$	673	$	859
Expenses
Execution and clearance fees	$	2,514	$	2,525
Interest expense	222		222
Other expense	27		27
Total expenses incurred with respect to related parties	$	2,763	$	2,774

Statements of Financial Condition	June 30, 2013		December 31, 2012
Assets
Securities borrowed	$	21,540	$	42,196
Receivable from brokers, dealers and clearing organizations	184		728
Other assets	1,535		1,608
Liabilities
Securities loaned	$	4,199	$	3,754
Payable to brokers, dealers and clearing organizations	84		57
Accrued expenses and other liabilities	2,180		359

In the ordinary course of business, the Company enters into foreign exchange contracts with related parties.