ITG and Jefferies

ITG began in 1986 with a simple, far-reaching idea, developed by some innovators at Jefferies, that technology could empower institutional investors. Originally developed as a means of facilitating block trading, "its value turned out to be much bigger than we had anticipated," commented Frank Baxter, Jefferies CEO at the time. In 1990, Jefferies bought Quantex and by 1994, this computer-based trading market was the largest intra-day matching system in the world. By the late 90s, the group was such a success, that it made sense to make ITG its own separate company.

In April of 1999, Jefferies Group, Inc. (NYSE: JEF) and Investment Technology Group, Inc. (NYSE: ITG) completed the planned spin-off of Jefferies & Company, Inc. and other subsidiaries, and the merger of ITG with the former Jefferies Group, now Investment Technology Group, Inc.

Through its wholly owned broker-dealer subsidiary, ITG Inc., ITG is the leading provider of technology-based equity trading services and transaction research to institutional investors and brokers. ITG services help clients to access liquidity, execute trades more efficiently, and make better trading decisions.

Letter to Shareholders about Tax Basis Allocation for Spinoff from ITG (April 28, 1999)