Related Parties (Tables)

6 Months Ended

Jun. 30, 2015

Summary of Balances and Transactions with Related Parties or Their Affiliates

As of the date and period indicated below, the Company had the following balances and transactions with its related parties or their affiliates (in thousands):



	For the three months ended June 30,						For the six months ended June 30,
Statements of Operations	2015			2014			2015				2014
Revenues
Commissions and fees	$	2,636		$	2,740		$	6,128			$	7,886
Trading revenues, net	1,804			541			3,905				1,355
Interest, net	131			130			357				318
Total revenues from related parties	$	4,571		$	3,411		$	10,390			$	9,559
Expenses
Execution and clearance fees⁽¹⁾	$	(4,180	)	$	(2,537	)	$	(8,808	)		$	(6,548	)
Communications and data processing	1,299			—			2,409				—
Payment for order flow	1,073			—			2,253				—
Collateralized financing interest	134			120			247				279
Professional fees	—			—			5,507			—	—
Other expense	656			434			1,277				834
Total expenses incurred with respect to related parties	$	(1,018	)	$	(1,983	)	$	2,885			$	(5,435	)

⁽¹⁾ Represents net volume based fees received from providing liquidity to related trading venues.



Statements of Financial Condition	June 30, 2015		December 31, 2014
Assets
Securities borrowed	$	45,466	$	26,110
Receivable from brokers, dealers and clearing organizations	107,946		20,075
Other assets	67,167		—
Liabilities
Securities loaned	$	1,267	$	7,376
Payable to brokers, dealers and clearing organizations	40,128		8,509
Accrued expenses and other liabilities	4,626		5,667

Schedule of Tender Offer

As part of the Company’s Tender Offer, it accepted for purchase validly tendered shares of the KCG Class A Common Stock at $14.00 per share from the following directors and stockholders, or their affiliates, who owned more than 10% of KCG Class A Common Stock (in thousands):



Name	Title/ Relationship	Number of Shares Purchased	Total Purchase Price
Stephen Schuler and related entities⁽¹⁾	Director/Stockholder	1,708	$	23,918
Daniel Tierney and related entities⁽²⁾	Director/Stockholder	1,798	25,176
GA-GTCO Interholdco, LLC⁽³⁾	Stockholder	8,285	115,989
Jefferies LLC	Stockholder	6,533	91,458

⁽¹⁾

Includes (i) Stephen Schuler, (ii) Serenity Investments, LLC, a limited liability company organized under the laws of the state of Alaska (“Serenity”), of which Mr. Schuler and his wife separately hold equity interests that together represent a controlling interest and with respect to which Mr. Schuler may be deemed to share voting and dispositive power and (iii) the Schuler Family GST Trust dated June 6, 2003, a trust that holds securities with respect to which Mr. Schuler may be deemed to share voting and dispositive power. Mr. Schuler disclaims beneficial ownership of the securities held by Serenity except to the extent of his pecuniary interest therein.

⁽²⁾

Includes (i) Daniel Tierney and (ii) the Daniel V. Tierney 2011 Trust (the “Tierney Trust”), a trust of which Daniel Tierney is the settlor and beneficiary. Mr. Tierney does not have or share voting or dispositive power over the securities held by the Tierney Trust, but does have the power to revoke the Tierney Trust and acquire beneficial ownership of such securities within 60 days. Mr. Tierney disclaims beneficial ownership of the securities held by the Tierney Trust.


⁽³⁾	GA-GTCO Interholdco, LLC, an affiliate of General Atlantic, has appointed two directors to the Company’s board of directors (Rene Kern, an employee of General Atlantic and John C. (Hans) Morris, a former employee of General Atlantic). Neither director participated in the Tender Offer with respect to shares they hold directly.