Virtu Financial

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Virtu Financial
Type Private
Industry Financial services
Founded 2008
Founders Vincent Viola
Headquarters New York City, U.S.
Products Market making, Designated Market Maker, Customized liquidity, High-frequency trading
Employees 151
Subsidiaries Madison Tyler
Website www.virtu.com

Virtu Financial is a market maker and liquidity provider to the financial markets worldwide. Through its technology platform it provides quotations to buyers and sellers in equities, commodities, currencies, options, fixed income, and other securities on various exchanges, markets, and liquidity pools.[1] Virtu uses proprietary high-frequency trading technology-enabled strategies to trade large volumes of securities. On March 10, 2014, Virtu Financial filed for its Initial Public Offering with the U.S. Securities and Exchange Commission.[2]

Company[edit]

Based in New York City, Virtu was founded by Vincent Viola, the former Chairman of the New York Mercantile Exchange and current owner of the Florida Panthers.[3] Virtu was ranked as one of the five largest high frequency traders of equities in Europe in 2011.[4]

The company has been quoted urging strict standards for electronic firms that are market makers. Virtu believes market makers should be obligated to quote at or near the inside of the national best bid and offer throughout the day, quote at various price points in a number of different securities and put real capital at risk.[5]

When filing for its IPO in March 2014, it was disclosed that during five years they made profit 1,277 out of 1,278 days, losing money just one day.[6]

Activities[edit]

Virtu operates on more than 210 unique exchanges, markets and liquidity pools in 30 countries around the world.[7] Some of these exchanges include NYSE Euronext, NASDAQ and the Chicago Mercantile Exchange. The company is a Designated Market Maker on the NYSE and NYSE Amex. Virtu makes markets by providing quotations to buyers and sellers in more than 10,000 securities and other financial instruments.[8]

On August 28, 2014, Virtu Financial, along with London-based GSA Capital, executed the first successful trades on ParFX Prime. ParFX is the wholesale global spot FX electronic trading platform, and all orders are subject to ParFX’s unique matching mechanism that applies a randomized pause to all submissions, amendments and cancellations, ensuring a level playing field for all participants regardless of technological sophistication or financial strength.[9]

Locations[edit]

Virtu has offices in New York (headquarters), Austin, Dublin, and Singapore.[10] It expanded its European headquarters to Dublin in September, 2013.[11] Virtu Financial Ireland Limited is regulated by the Central Bank of Ireland.

Operating Subsidiaries[edit]

In May 2011, Virtu merged with proprietary trading firm, Madison Tyler based in Santa Monica, California[12][13] with the backing of Silver Lake Partners a leading technology focused private equity firm.[14]

Virtu acquired a market-making unit that handles NYSE Amex stocks from Cohen Capital Group LLC in December 2011. The purchase made Virtu the largest overseer of trading in shares listed on Amex, known as the American Stock Exchange before NYSE Euronext bought it for $260 million in 2008. The deal gave Virtu a designated market-maker license for New York Stock Exchange companies. With the acquisition, some of the companies Virtu was able to trade and support included New Gold Inc., Northern Oil & Gas Inc., and the American depositary receipts of British American Tobacco Plc.[15]

In September 2012, Virtu acquired the European ETF Market Maker assets of Nyenburgh Holding B.V. Nyenburgh is recognized as a leading ETF market maker across Europe.[16]

References[edit]

  1. ^ "Company Overview of Business Financial, Inc.". investing.businessweek.com. Business Week. Retrieved 1 July 2014. 
  2. ^ "Virtu Financial, Inc. S-1". www.sec.gov. SEC. 
  3. ^ Man Vs. Machine: Seven Major Players in High-Frequency Trading. CNBC, Sep 13, 2010
  4. ^ Europe’s top 10 high-frequency kingmakers. Dow Jones Financial News, October 3, 2011
  5. ^ McCrank, John (4 June 2014). "Virtu CEO urges strict standards for electronic firms that are market makers". Reuters. Retrieved 1 July 2014. 
  6. ^ Mamudi, Sam (4 June 2014). "Virtu Touting Near-Perfect Record of Profits Backfired, CEO Says". Bloomberg. Retrieved 1 July 2014. 
  7. ^ "Virtu Financial, Inc. S-1". www.sec.gov. SEC. 
  8. ^ "Virtu Financial, Inc. S-1". www.sec.gov. SEC. 
  9. ^ "Leading buy-side firms complete first trades on ParFX as Prime Service Goes Live". www.parfx.com. ParFX. 
  10. ^ "Virtu Financial Acquires Amsterdam ETF Market Maker, Nyenburgh Holding B.V.". PR Newswire. 14 September 2012. Retrieved 1 July 2014. 
  11. ^ "Virtu Financial LLC expands its European HQ in Dublin, with 30 highly skilled jobs". IDA Ireland. 19 September 2013. Retrieved 1 July 2014. 
  12. ^ Two large US proprietary trading firms to merge. Financial Times, May 28, 2011
  13. ^ Alliance Healthcare, Virtu Financial Offer New Deals. Wall Street Journal, June 11, 2011
  14. ^ Silver Lake Backs Virtu/Madison Tyler Merger. Mergers and Acquisitions, June 1, 2011
  15. ^ Mehta, Nina (13 December 2011). "High-Frequency Firm Virtu Buys Cohen Capital’s Amex Unit". Business Week. Retrieved 1 July 2014. 
  16. ^ "Virtu Financial Acquires Amsterdam ETF Market Maker, Nyenburgh Holding B.V.". PR Newswire. 14 September 2012. Retrieved 1 July 2014. 

External links[edit]