Mark Shooter — Research Vault

Kyte Group

6 min read

Notes

The Kyte Group is a UK-based financial services and investment group founded in 1985 by derivatives trader David Kyte (born June 1960). The group has undergone multiple corporate iterations and ownership changes.

Corporate History

Original Kyte Group Limited (1984-2015, Company 01810354)

The principal trading entity was originally incorporated on 19 April 1984 as M.D. Futures Limited, renamed Kyte Futures Limited in September 1986, and then The Kyte Group Limited in April 1993. David Kyte was a director from before August 1991 until 27 June 2011.

The group was established in London in 1985 when David Kyte, then 24-25 years old, set up as an independent “local” (own-account trader) on LIFFE with just GBP 25,000. It rapidly expanded into a clearing, brokerage, settlement, and back-office services provider for proprietary traders, brokers, market makers, and hedge funds. The group was headquartered at the Business Design Centre, 52 Upper Street, London, N1 0QH.

Financial performance (FY ending 31 March 2009): Revenues of GBP 115.4 million, gross profit of GBP 22.5 million, and pre-tax profit of GBP 11.7 million.

Regulatory status: Originally regulated by the SFA (Securities and Futures Authority) from 29 April 1988, then by the FSA, and later the FCA.

Market position: One of the largest derivatives clearing agents in Europe, consistently in the top 10 by volume on Liffe and ICE Futures Europe, and top 20 on Eurex. Member/participant on NYSE Euronext, NYSE LIFFE, and Eurex exchanges. Multiple co-location facilities in London and Frankfurt.

Key personnel:

  • David Kyte — Founder and Director (resigned June 2011)
  • Peter Laurence Green (born April 1964) — Chief Executive (director from before August 1991 to January 2026)
  • Ron Sandler CBE — Non-Executive Chairman (the prominent British businessman known for rescuing Lloyd’s of London and chairing Northern Rock during nationalisation)

Acquisition by GFI Group (2010): On 21 June 2010, GFI Group Inc. (NASDAQ: GFIG) announced the acquisition of The Kyte Group Limited and Kyte Capital Management Limited for GBP 38.3 million (70% equity), structured as GBP 22.4 million in cash and GBP 15.9 million in GFI common stock, with additional cash for the remaining 30% based on performance through June 2013. The FSA approved the transaction.

Acquisition by R.J. O’Brien (2015): In March 2015, R.J. O’Brien Europe Limited acquired The Kyte Group Limited from GFI Group. After closing on 17 March 2015, the company was renamed R.J. O’Brien Limited. FCA-approved. Peter Green continued as consultant and non-executive director. Thomas Texier, a longtime Kyte executive, was appointed to lead operations.

Sources: Companies House - R.J. O’Brien Limited (formerly The Kyte Group); GFI Group acquisition announcement, 21 June 2010; R.J. O’Brien acquisition announcement; PR Newswire

Kyte Broking Limited (Company 02781314, est. 1993)

Incorporated 20 January 1993 as Kyte Clearing Limited, renamed Kyte Broking Limited in May 1995. Established as an independent Non-Clearing Member (NCM) of LIFFE in 1994, providing niche execution services in UK and European fixed income futures and options. With the demise of open-outcry dealing at LIFFE in 2000, KBL migrated staff from floor to screen trading. By 2005, KBL supported 50+ brokers executing exchange-traded derivatives for 200+ institutional clients. Authorised and regulated by the FCA (FRN 174863).

In 2009, Market Securities (“MS”) was demerged from Kyte, becoming an independent brokerage firm and an Appointed Representative of KBL. In 2010, KBL was acquired by GFI Group as part of the whole Kyte Group acquisition. In May 2015, the Market Securities management team acquired KBL back from GFI Group. Peter Green (CEO) stepped down after the sale. KBL continues to operate under Market Securities, now with 120+ brokers and 600+ institutional clients, from 55 Baker Street, London.

Sources: Companies House - Kyte Broking Limited; FCA Register - Kyte Broking Limited; Kyte Broking history

Kyte Capital Management Limited (Company 05107427, est. 2004)

Originally KGL Capital Management Limited (incorporated 20 April 2004), renamed Kyte Capital Management Limited in May 2006. An investment vehicle that provided seed capital to start-up trading groups, small hedge funds, market-makers, individual sole traders, and developers of algorithmic trading systems. Acquired by GFI alongside the main Kyte Group in 2010. Still active, registered at 5 Churchill Place, Canary Wharf.

Source: Companies House - Kyte Capital Management Limited

The Kyte Group Limited (Company 11113554, est. 2017) — Current

Incorporated 15 December 2017 as a new family holding company. Registered at 35 Ballards Lane, London, N3 1XW (also uses The Old Police Station, 1069 Finchley Road, London, NW11 0PU). Directors: David Mark Kyte, James Leigh Kyte (born August 1986), Max Daniel Kyte (born July 1992), and Ilana Janine Murray (born February 1988). The reconstituted Kyte Group serves as an umbrella for Kyte Property, Hamilton Court FX/Capital, and other family investments.

Source: Companies House - The Kyte Group Limited

FSA Regulatory Action (2006)

In August 2006, the FSA issued a Final Notice imposing a GBP 250,000 financial penalty on The Kyte Group Limited for failings between 2001 and 2003:

  • Failed to properly reconcile client money balances
  • Failed to segregate correct amounts of client money
  • Failed to maintain adequate accounting records
  • Balance sheet out by approximately GBP 7.2 million for the year ended April 2003
  • Failed to perform Client Money Balances Reconciliations from N2 until September 2003
  • Failed to evidence dates of Client Bank Account Reconciliations

The FSA noted similar concerns had been raised by SFA/FSA in successive years. Management acknowledged finance department failings but called the fine “disproportionate,” stating no customers were harmed.

Sources: FCA Final Notice (PDF); Money Marketing - Sandler firm Kyte fined 250k by FSA

Relationship with Mark Shooter

Mark Shooter operated a large managed account within the Kyte Group from approximately 1997 to 2004, building a track record in bond and equity options using relative value techniques. David Kyte described in the Fimat/SocGen press release as a “respected derivatives trader,” collaborated with Shooter to found Shooter Fund Management in November 2004, with Kyte making personal capital commitments to the Shooter Multi-Strategy Master Fund.

Both Kyte Broking Limited and The Kyte Group Limited were members of Intermatch Brokers LLP (OC320157), registered at the Kyte Group’s address, alongside Shooter, Shooter Fund Management, and Karajan Ltd from June 2006. The Kyte entities resigned in December 2010.

Sources: Fimat/SocGen Press Release, 1 November 2004; Companies House - Intermatch Brokers LLP

Edges

David Kyte

Founded the Kyte Group in 1985. Director until June 2011. Later re-established a new Kyte Group Limited (11113554) in December 2017 as a family holding company.

Mark Shooter

Shooter operated a large managed account within the Kyte Group from approximately 1997 to 2004, building a track record in bond and equity options. Kyte collaborated with Shooter to found Shooter Fund Management.

Shooter Fund Management

The Kyte Group co-founded the Shooter Multi-Strategy Fund in November 2004, with David Kyte making personal capital commitments.

Intermatch Brokers LLP

Both Kyte Broking Limited and The Kyte Group Limited were members of Intermatch Brokers LLP (OC320157). The entity was registered at the Kyte Group’s address at 52 Upper Street. Kyte entities resigned December 2010.

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