The Karn Group - Trading and Compliance Solutions

Fixed Income Products

A comprehensive tool set to assess the fair value of Fixed Income Bond transactions pre-trade, intraday post execution and T+1. System includes the pricing of FINRA, Corporate and Agency bonds, MSRB and US Treasurys.

  • Fixed Income Securities Pricing
  • Trade Supervision Compliance (Sentinel System)
  • Pre-Trade Best Execution (Surveyor System)
  • Automated Trading

Equity Products

Innovated technology designed for Broker-Dealers and Market Center’s Best Execution and SEC compliance obligations. Offering modernized data visualization tools and workflow solutions to assist firms in their day-to-day regulatory responsibilities.

  • SEC Rule 605, 606 and 611 Reporting
  • Best Execution Solutions (4th Quarter 2015)
  • NMS Tick Size Pilot Reporting
  • Trade Surveillance Solutions

Meeting Your Technology Needs

Services are provided using high reliability and fast response time Web based applications hosted by TKG. TKG maintains a redundant infrastructure with automatic fail over and intraday data backups and on-demand disaster recovery capabilities.​

In 2015, FINRA will increase its emphasis on reviewing firms' pricing practices, including whether firms have the supervision and controls in place to ensure they are using reasonable diligence and employing their market expertise to achieve best execution for their customers and avoiding excessive mark-ups (and mark-downs).

FINRA 2015 Regulatory and Examination Priorities Letter - January 6, 2015

TKG Delivers:

  • User-Centered Web Interface Design
  • Low Latency High Performance Applications
  • Secured Data Transmission using VPN, SSH and SFTP
  • Public/Private Key Data File Encryption
  • Single Sign On
  • FIX Connections
  • Web Services
  • Highly Reliable and Redundant Infrastructure
  • Automatic System Fail Over
  • Intraday Data Backups
  • On-Demand Disaster Recovery

The Karn Group Inc. (TKG) is the largest provider of Fixed Income Compliance solutions for Broker/Dealers and Clearing Firms. TKG offers a comprehensive Web based tool set to assess the fair value of Fixed Income transactions and keep you prepared for examinations in an increasingly demanding regulatory environment. Product offerings include Fair Value and Commissions analysis, MSRB Rule G-18 and G-14 Oversight, Real-time pricing services of Municipal and Corporate Bonds and Auto Bidding of Bids Wanted, and pricing of Offerings from Inventory for Municipal and Corporate Bonds.

In addition to Fixed Income, TKG offers Equity Compliance, Best Execution and Trade Surveillance solutions for SEC and FINRA regulated Broker-Dealers, Exchanges, Alternative Trading Systems, Crossing Networks, and Market Centers, including SEC 605, 606 and the new Tick Size Pilot reporting.

  • TKG is the largest provider of Fixed Income Trade Surveillance software
  • TKG Fixed Income Services annually price more than 120,000 unique securities and 1.8 million transactions
  • Real time Municipal Bond pricing system based on MSRB trade reports and ATS quote feeds (only commerically available system)
  • Real time Corporate and Agency bond pricing based on FINRA Trace trade reports
  • Fully automated Municipal and Corporate Bond Bidding system responding to Bids Wanted from ATS or OMS systems.
  • Clients include many of the largest US Broker/Dealers, Banks, Correspondent Networks and Investment Advisors

Ted Karn

Ted is the President and Founder of The Karn Group (TKG). Ted is previously best known as the President and Founder of Market Systems Inc. (MSI) where for 12 years he led MSI to become the market leader in providing SEC Best Execution reports. MSI processed in excess of 100 million stock transactions per day which encompassed approximately 75% of US retail stock orders. Provided trade exception reporting, statistics and regulatory reports to compliance officers and trading desk management to enable them to meet their compliance obligations. MSI customers included almost all major US broker dealers and clearing firm. Ted sold MSI to Thomson Reuters in 2006. Prior to launching MSI, Ted traded Fixed Income Bonds and Derivative Securities and Foreign Exchange.

  • President and Founder of The Karn Group (TKG) from inception in 2008 to present.
  • President and Founder of Market Systems Inc. (MSI) from inception in 1994 to sale to Thomson Reuters in 2006
  • Portfolio Manager for Household International Bank and Colonial Mutual Funds
  • Trading Manager for Merrill Lynch, First Boston and First Options

Ted has a BS degree in engineering physics from Cornell University and an MBA in Finance from New York University's Stern School of Business.


Contact Details

117 N. Jefferson, Suite 305
Chicago, Illinois 60661

P: (312) 590-0400

E: info@karngroup.com

H: Monday - Friday: 8:00 AM to 5:00 PM