Founded by Managing Partner Robert N. Stein in 2001, Astor Asset Management seeks to identify fundamental economic shifts in order to provide retail and institutional investors with capital appreciation while managing risk in diverse market conditions. The firm utilizes proprietary macro-economic models to construct portfolios of exchange-traded funds (ETFs) which are offered through advisors within separately-managed accounts (SMAs) and the Astor Long/Short ETF Mutual Fund. Based in Chicago, Ill., Astor is a registered investment advisor with the SEC. The firm has 13 employees and approximately $560 million in assets under management.

"I'm excited by the growth potential for Astor as a part of Knight, considering the firm's longstanding relationships with the leading wirehouses and broker-dealers," said Stein. "Backed by the resources and infrastructure of Knight, I believe we'll be able to provide an even higher level of client service while adding to the product offering. My colleagues at Astor and I look forward to continued success at Knight."

The terms of the agreement include a four-year employment contract for Mr. Stein. The closing of the acquisition is subject to customary closing conditions and Astor Asset Management advisory client approval. The acquisition is expected to be completed in the fourth quarter of 2010 and accretive to Knight's earnings per share in 2011. Upon the close of the acquisition, Astor Asset Management, LLC will operate as a wholly-owned operating subsidiary of Knight Capital Group.

The advisors to Knight on the transaction are Kirkland & Ellis LLP and K&L Gates LLP. The advisors to Astor Asset Management are Neal, Gerber & Eisenberg LLP and Thompson Hine LLP.