US investment bank Goldman Sachs is acquiring a minority equity interest in Knight Capital's Direct Edge ECN. Financial terms of the transaction were not disclosed.
Knight Capital bought the ECN in May 2005, when it was called Attain. The electronic trading network was re-launched as the Direct Edge ECN in October 2005.
The Goldman transaction, which is subject to closing conditions and regulatory approval, is expected to complete within 90 days.
Goldman joins Citadel Derivatives as an investor in the Direct Edge ECN. Citadel acquired a minority stake in the trading network last month and now intends to increase its ownership in the network.
Knight says following closing of the transaction with Goldman Sachs and the increased investment by Citadel, its ownership interest in Direct Edge ECN will be reduced to below 50%, furthering the ECN's transition from a subsidiary to an independent entity.
Commenting on the investments, Thomas Joyce, chairman and CEO, Knight Capital, says: "Direct Edge ECN's efforts to further drive liquidity and increase value for all market participants will be enhanced as an independent entity."