Related Parties (Tables)

12 Months Ended

Dec. 31, 2016

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 years ended December 31,
Statements of Operations	2016		2015			2014
Revenues
Commissions and fees	$	31,716	$	15,844		$	14,528
Trading revenues, net	1,839		6,468			3,862
Interest, net	581		914			651
Total revenues from related parties	$	34,136	$	23,226		$	19,041
Expenses
Execution and clearance fees⁽¹⁾	$	12,464	$	(15,472	)	$	(10,261	)
Communications and data processing	18,613		6,351			—
Payment for order flow	5		2,685			585
Collateralized financing interest	237		399			529
Professional fees	—		5,507			—
Other expense	231		2,349			1,719
Total expenses incurred with respect to related parties	$	31,550	$	1,819		$	(7,428	)

⁽¹⁾

Represents net volume based fees paid or received by KCG for taking or providing liquidity to related trading venues. Volume based fees will vary period to period based on usage. The volume with the Company's related party are part of its overall trading strategies, and in 2016, net volume based fees with such party resulted in more taking of liquidity as compared to 2015, when the Company provided more liquidity to such party.



Statements of Financial Condition	December 31, 2016		December 31, 2015
Assets
Securities borrowed	$	5,293	$	10,573
Receivable from brokers, dealers and clearing organizations	2,106		1,987
Other assets	62,906		67,652
Liabilities
Securities loaned	$	2,594	$	3,844
Payable to brokers, dealers and clearing organizations	188		61
Accrued expenses and other liabilities	3,708		4,159

Schedule of Tender Offer

As part of the Company’s "modified Dutch auction" tender offer ("Tender Offer") in 2015, 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, at the time of the Tender Offer):



Name	Relationship/ Title	Number of Shares Purchased	Total Purchase Price
Stephen Schuler and related entities⁽¹⁾	Stockholder/ Former Director	1,708	$	23,918
Daniel Tierney and related entities⁽²⁾	Stockholder/Former Director	1,798	25,176
General Atlantic⁽³⁾	Former Stockholder	8,285	115,989
Jefferies	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 (the "Schuler Family 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. In May 2016, Stephen Schuler resigned from his position as a director of the Company. Serenity and the Schuler Family Trust no longer hold shares of KCG Class A Common Stock.

⁽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. In November, 2015, Daniel Tierney resigned from his position as a director of the Company. The Tierney Trust no longer holds shares of KCG Class A Common Stock.

⁽³⁾

General Atlantic 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. Following the completion of the Swap Transaction, General Atlantic no longer holds shares of KCG Class A Common Stock.