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CNBC TRANSCRIPT: STEPHENS INC. CHIEF OPERATING OFFICER CURT BRADBURY ON CNBC’S “FAST MONEY HALFTIME REPORT”

WHEN: Monday, August 6, 2012

WHERE: CNBC’s “Fast Money Halftime Report

Following is the unofficial transcript of a CNBC interview with Stephens Inc. Chief Operating Officer Curt Bradbury on CNBC’s “Fast Money Halftime Report.” All references must be sourced to CNBC.

Knight Investor: Knight Suffered Unique Event, Easily Fixable

SCOTT WAPNER: KNIGHT CAPITAL GROUP GETTING BAILED OUT BY WALL STREET OVER THE WEEKEND WITH A $400 MILLION FINANCING DEAL AND JOINING ME NOW IS ONE OF THE INVESTORS WHO CAME TO THE RESCUE. CURT BRADBURY IS THE COO OF STEPHENS. HIS FIRM JOINED BLACKSTONE, GETCO, STIFEL NICOLAUS AND TD AMERITRADE TO SAVE KNIGHT. SIR, WELCOME TO THE PROGRAM. GOOD TO HAVE YOU HERE IN STUDIO.

CURT BRADBURY: THANK YOU VERY MUCH. NICE TO BE HERE.

WAPNER: WHY KNIGHT? WHY YOU?

BRADBURY: WELL, IT'S A GREAT FIRM. FIRST OF ALL. WE'VE KNOWN TOM JOYCE AS A FIRM FOR A LONG TIME. WE'RE A CUSTOMER OF KNIGHT'S AND HAVE BEEN FOR MANY YEARS. AND WE THOUGHT THIS WAS A LIGHTNING STRIKE. AND THAT HAPPENED TO A GREAT -- OTHERWISE GREAT COMPANY. AND YOU KNOW, SO THAT'S WHY US.

WAPNER: IS THIS THE BEST AND ONLY WAY THAT YOU COULD GET INVOLVED OR GET A PIECE OF KNIGHT? WERE THERE ANY EFFORTS TO TRY AND GET A DIFFERENT PIECE, SO TO SPEAK, OF KNIGHT, WITHOUT DOING THIS DEAL TOGETHER WITH THE OTHER INVESTORS?

BRADBURY: NO, NOT REALLY. I MEAN YOU KNOW, AS A PUBLIC COMPANY I SUPPOSE WE COULD HAVE BOUGHT THE SHARES BEFORE. BUT, CLEARLY THERE WAS GOING TO BE A RECAPITALIZATION NEEDED SO WE REACHED OUT TO TOM JOYCE AND EXPRESSED OUR INTEREST.

WAPNER: WHEN DID THOSE CONVERSATIONS FIRST BEGIN?

BRADBURY: I THINK I FIRST CALLED TOM ON FRIDAY OF LAST WEEK.

WAPNER: A COUPLE OF DAYS AFTER THE GLITCH. WHAT WAS GOING THROUGH YOUR MIND AS YOU'RE SITTING THERE AND WATCH THIS ALL UNFOLD?

BRADBURY: WELL THE FIRST QUESTION THAT GOES THROUGH ANYBODY'S MIND IS WHAT HAPPENED? AND I THINK REALLY, YOU DON'T HAVE TO GET VERY DEEPLY INTO IT TO FIGURE OUT THAT IT WAS BASICALLY A LIGHTNING STRIKE, A UNIQUE EVENT THAT WAS EASILY FIXABLE. AND THAT THEY HAD FIXED IT. BUT THAT BECAUSE OF THE LOSS, AND BECAUSE THEY STOOD IN FRONT OF THE ORDERS AND TOOK THE LOSS THERE WAS GOING TO BE A RECAP NEEDED.

WAPNER: ARE YOU TROUBLED THAT INVESTORS – THAT SHAREHOLDERS DIDN'T HAVE A SAY IN HOW THIS DEAL WAS DONE? PUT YOURSELF ON THE OTHER SIDE FOR A MOMENT IF YOU WILL.

BRADBURY: YEAH, I UNDERSTAND THAT. WHAT I'D SAY IS THAT IF YOU LOOK AT THE SITUATION, AND THERE WILL BE PLENTY OF TIME TO LOOK AT THIS, BUT IT WAS EITHER FOR THE SHAREHOLDERS, THE EXISTING SHAREHOLDERS AS OF LAST WEEK, YOU KNOW, IT WAS EITHER THIS DEAL OR NOTHING, IN EFFECT, THAT THERE WOULD BE – THAT INVESTMENT WOULD GO TO ZERO. SO, IN THIS DEAL, THEY RETAINED 25 OR 30 PERCENT OF THE COMPANY. SO, TO ME THAT LOOKS LIKE A FAIR TRANSACTION.

WAPNER: SO THE INVESTING GROUP GETS 70 TO 75 PERCENT ROUGHLY.

BRADBURY: ROUGHLY.

WAPNER: SHOULD TOM JOYCE CONTINUE TO BE THE CEO OF THIS COMPANY?

BRADBURY: WELL, HE SHOULD IN MY OPINION. I CERTAINLY THINK THAT HE'S DONE A GREAT JOB OVER THE YEARS BUILDING KNIGHT INTO THE TRADING POWERHOUSE THAT IT WAS AND IS. AND I THINK HE SHOULD REMAIN. BUT YOU KNOW, TOM KNOWS HE'S GOT A LOT OF WORK TO DO AND HE'S ALL ABOUT THAT.

WAPNER: IS IT A UNANIMOUS THING RIGHT NOW? DO YOU KNOW BETWEEN THE INVESTING GROUP? HOW EVERYBODY ELSE FEELS?

BRADBURY: IT'S UNANIMOUS WITHIN OUR FIRM. STEPHENS. BUT, I THINK HE'S A GOOD GUY AND I THINK THAT'S -- AND A GOOD MANAGER AND A GOOD CEO AND I THINK THAT'S GENERALLY THE WAY THAT THE GROUP FEELS.

WAPNER: YOU WOULDN'T HAVE GOTTEN INVOLVED, I WOULD THINK, IF YOU DIDN'T THINK THAT CUSTOMERS WERE GOING TO RETURN TO KNIGHT IN LARGE NUMBERS. THAT ITS BUSINESS WAS GOING TO THRIVE IN THE FUTURE.

BRADBURY: ABSOLUTELY. I THINK THE EARLY RETURNS AS OF THE DAY ARE GOOD, IN THAT REGARD. WE CERTAINLY RESUMED OUR ROUTING TO KNIGHT. AND I THINK WHEN THE TRADING WORLD UNDERSTANDS THAT THERE IS LIQUIDITY IN THE FIRM NOW AS A RESULT OF THIS TRANSACTION, AND UNDERSTANDS MORE ABOUT EXACTLY WHAT HAPPENED AND HAS BEEN FIXED I THINK THE ROUTING OF ORDERS WILL GO BACK TO WHERE IT WAS OR BETTER.

WAPNER: WHAT I FIND INTERESTING IS YOU'RE ALSO ON THE BOARD OF SIFMA.

BRADBURY: I AM. THAT’S RIGHT.

WAPNER: YOU GUYS ARE THE CHIEF LOBBYING ORGANIZATION ON BEHALF OF THE EXCHANGES RIGHT?

BRADBURY: ON BEHALF OF ALL THE FIRMS.

WAPNER: RIGHT.

BRADBURY: ON BEHALF OF THE EXCHANGES. ALL THE SECURITIES FIRMS.

WAPNER: SO DOES MORE NEED TO BE DONE? DO INVESTORS NEED TO BE PROTECTED MORE THAN THEY ARE? I MEAN, WHEN YOU SIT BACK, DO YOU WONDER HOW THE HECK A FIRM CAN ALMOST GO BELLY UP, BE BROUGHT TO ITS KNEES BY A TRADING GLITCH?

BRADBURY: YEAH, I THINK I'M NOT A BIG PROPONENT OF MORE REGULATION. I THINK THAT THE RAPIDITY OF TRADING AND THE SPEED IS SOMETHING THAT THE REGULATORS ARE LOOKING AT AND PROBABLY NEED TO. I THINK AS TOM SAID ON TV THIS MORNING THEY NEED TO LOOK AT THE SPECIFIC SITUATION, AND MAKE THEIR OWN DECISIONS ABOUT WHAT NEEDS TO BE DONE. BUT I THINK IF I BACK UP AND LOOK AT THIS FROM WHAT I THINK IS AN IMPORTANT ASPECTS OF IT, FROM THE COUNTRY'S POINT OF VIEW, FROM THE REGULATOR'S POINT OF VIEW, FROM EVERYBODY'S POINT OF VIEW, THIS IS A GOOD DAY FOR AMERICAN CAPITAL MARKETS. THERE WAS NOT A BAILOUT NEEDED BY THE GOVERNMENT. PRIVATE INVESTORS CAME TOGETHER, AND FIXED THIS COMPANY WITH CASH. AND, IN FACT, WHAT HAPPENED IS THE AMERICAN CAPITAL MARKETS WORKED, AS THEY SHOULD WORK, AND THE SITUATION WAS REMEDIED WITHIN THE AMERICAN CAPITAL MARKET STRUCTURE, FREE ENTERPRISE HAD A GOOD DAY.

WAPNER: FINALLY, RESPECTFULLY, HOW COULD YOU BE IN FAVOR OF LESS REGULATION, IF WE’RE COMING OFF EVENTS LIKE THIS, THE FACEBOOK IPO, THE BATS IPO, THE FLASH CRASH AND ALL THESE OTHER EVENTS THAT SEEM TO BE STRIKING A BLOW TO INVESTOR CONFIDENCE. WHAT DO YOU SAY AS A RESPONSE?

BRADBURY: I THINK THERE ARE ISSUES WITHIN THE TECHNOLOGY, ALL OF THIS STUFF, ALL THE DIGITAL REVELATIONS, I THINK THERE ARE ISSUES WITHIN THE TECHNOLOGY THAT SHOULD BE LOOKED AT AND SHOULD BE APPROACHED WITH CAUTION, AND I THINK THE REGULATORS ARE DOING THAT. I THINK THEY RESPONDED TO THE NASDAQ/FACEBOOK THING AND I THINK MARY SCHAPIRO WAS INFORMED AND INVOLVED IN THIS, AND I THINK THE REGULATORS ARE DOING WHAT THEY SHOULD DO. AND I THINK THAT'S, AS TOM EXPRESSED IT THIS MORNING.

WAPNER: CURT, IT IS GOOD TO SEE YOU.

BRADBURY: GOOD TO SEE YOU.

WAPNER: WE APPRECIATE YOUR TIME. CURT BRADBURY IS OF COURSE THE COO OF STEPHENS.

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