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BREAKING NEWS ON CNBC'S "THE STRATEGY SESSION": SCHONFELD GROUP FIRED APPROX 50 TRADERS LAST FRIDAY

WHEN: TODAY, TUESDAY, JULY 6TH AT 12PM ET

WHERE: CNBC’S“THE STRATEGY SESSION”

Also available at strategysession.cnbc.com

Following is the unofficial transcript. All references must be sourced to CNBC.

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FABER: THIS IS "THE STRATEGY SESSION." IM DAVID FABER ALONG WITH MY CO-HOST GARY KAMINSKY. STOCKS SURGING AS INVESTORS BET ON A GLOBAL RECOVERY, BUT WE'RE GOING TO START WITH BREAKING NEWS MUCH CLOSER TO HOME. THE SCHONFELD GROUP IS ONE OF THE LARGER PRIVATE TRADING SHOPS ON WALL STREET HAS TERMINATED 50 PROPRIETARY TRADERS FROM ITS FORCE OF 350. IT'S DOWN TO 300. ABOUT A 15% CUT IN ITS WORK FORCE.THE REASON PERHAPS THE MOST INTERESTING PART OF THE STORY THE RISE OF ELECTRONIC TRADING. IN AN E-MAIL SENT ON FRIDAY AND OBTAINED BY CNBC, THE CEO STEVEN SCHONFELD SAYS "BULL AND BEAR MARKETS COME AND GO. GOOD TRADING MARKETS COME AND GO. BUT, UNFORTUNATELY, OUR VISION OF THE FUTURE OF TRADING HAS CHANGED. IT IS GETTING MUCH TOUGHER FOR TRADERS TO MAKE A LIVING OR GET BY. DIRECT COMPETITION FROM BLACK BOXES, STAT ARB, AND HIGH FREQUENCY TRADING WHICH CONTINUES TO GROW AT EXPONENTIAL RATES IS HERE TO STAY, AND HAS CAUSED UNDER THE CIRCUMSTANCES TO CHANGE OUR OUTLOOK FOR LESSER SKILLED TRADERS." HE CONCLUDES THE E-MAIL, AGAIN, SENT ON FRIDAY BY SAYING IT'S TIME FOR ME TO LEAVE. HAPPY 4th.NOT PARTICULARLY HAPPY 4th, GARY, FOR THOSE TRADERS WHO WERE LET GO.THE REASONS HERE THOUGH VERY INTERESTING AND SOMETHING WE'VE CITED ON THIS SHOW ANY NUMBER OF TIMES.

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