And these new exchanges have obscure names like Getco, Bats Global Markets and Direct Edge.
Getco and PwC did not provide a response to my requests for comments before press time.
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
Knight CEO Tom Joyce is said to be considering offers outside of Virtu and Getco as well.
FORBES: Bids For Knight Capital Heat Up As Virtu Makes An All-Cash Offer
Getco was doing this already as a supplemental liquidity provider at NYSE, another distinction created two years ago.
Many reports brazenly admit Getco did a reverse merger, like those Chinese deals that are causing so much fraud trouble.
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
The difference now is that Getco, which is based in Chicago, will have representatives located on the floor of the Big Board.
And by being the point-firm for GM stock, Getco has symbolically arrived.
Rising above the price of the Getco offer is a likely signal investors anticipate at least one more bid over the top.
FORBES: Getco Bids $3.50 Per Share For Knight Capital As Other Buyers Circle
The day also represented an important coming out of sorts for Getco, the high-frequency trading shop that handled the opening of GM trading.
Getco says its proposal will leave no individual shareholder with more than a 20% stake and no major institutional holder with more than 10%.
FORBES: Getco Bids $3.50 Per Share For Knight Capital As Other Buyers Circle
The exchange anointed Getco a designed market maker earlier this year.
It looks like Getco, not long ago an outsider, is part of the establishment and a pillar of the American economy, or something of the sort.
Getco sought to combine with Knight using its existing structure as a public company, giving Getco and its private-equity backer General Atlantic LLC, immediate access to shareholders.
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
Getco already owns 23.8% of Knight shares which it bought this summer as part of a group effort to save the brokerage firm after a costly trading error.
FORBES: Bids For Knight Capital Heat Up As Virtu Makes An All-Cash Offer
In reality, the markets (in part driven by privately held firms like Getco) have been evolving to a structure that caters to electronic trading, high frequency or otherwise.
Getco, as this super-special market maker, has some obligations.
Smaller Getco takes over larger Knight Capital because Knight already has a New York Stock Exchange listing, saving Getco the trouble of going through the IPO process and SEC S-1 review and approval scrutiny.
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
The company, which has raised an unspecified seed financing from Spark Capital and market maker GETCO, provides browser-based tools for anyone with basic programming knowledge to create algorithms and simulate actual trading with them.
Getco is getting the business by way of buying it from Barclays, which had to shed some of its assigned stocks after acquiring the designated market maker business of LaBranche, one of the old-guard specialist firms.
Getco already casts a tall shadow over daily trading, by some estimates roughly 20% of stock market volume, so for it the move is symbolic of changes it has been trying to lead over the last decade.
Getco fired the first public salvo Wednesday.
FORBES: Getco Bids $3.50 Per Share For Knight Capital As Other Buyers Circle
FORBES: Getco Gets NYSE Listing Via Reverse Merger With Knight Capital
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