Virtu Financial seeks billions from listing

Virtu Financial, a US electronic market maker, is poised for a stock marketlisting this month in a move that will test investorsattitude to the controversialpractice of high-frequency trading.
Its success or otherwise will help decide if some asset managers and long-terminvestors who are often cited as the victims of aggressive trading strategies have moved on from last year’s fracas over high-frequency trading and are nowwilling to buy shares in what would be the first listing of a proprietary electronictrading business.

A number of market participants, from traders to exchanges, have been finedby the US Securities and Exchange Commission for breaking trading rules.

Virtu is one of the largest traders in global equities, commodities and foreignexchange, making money on the difference in the spread at which assets aretraded.

It has drawn attention for its disclosure that it has lost money on just one of thelast 1,485 trading days.

Revenues at the company rose 9 per cent to $723m while net income rose 4.3per cent to $190m in 2014.

In the same period, net income rose between 44 per cent and 55 per cent, to$70-$76m. The IPO will help Silver Lake Partners, a US private equity groupand long-time backer of Virtu, sell down part of its 10.7 per cent shareholding.

Related Posts

  • 71
    When hedge funds use bots to buy and sell stocks within milliseconds, they're not improving the market. They're rigging the market.   High-frequency trading (HFT) hedge funds. These funds use computer algorithms—a.k.a.: algobots—to buy and sell stocks at incredible speeds. We're talking milliseconds. The idea is to react to any market news or…
    Tags: market, sell, buy, trading, high-frequency
  • 70
    ( Source : ) The global shipping slowdown hints at a recession around the corner Instability in China and tumbling commodity prices have devastated the world’s freight providers – a strong indicator of trouble to come. This is beginning to have the feel of 2008 all over again. Policy makers…
    Tags: cent, $, trading
  • 70
    Warren Buffett has been incredibly successful, and he's extremely wealthy. Warren Buffett's wealth jumped by around $12.7 billion in 2013 alone. But how much is $12.7 billion anyway? And how good an investor is Warren Buffett really? We've put together some facts that really put him in perspective. Read more:
    Tags: $, will, trading, success
  • 68
    Bonds have never been an attractive type of Investment. People consider them boring, conservative, with the least potentiality and the maximum uncertainty of the risk of losing money. Bill Gross, the co-founder of PIMCO (Pacific Investment Management Co.) managed to win the fear of the Bond market. He took his…
    Tags: market, money, trading, success
  • 65
    Tags: trading