Trading With Virtu Financial

Luiggi Trejo
2 min readOct 30, 2023
Photo by Mika Baumeister on Unsplash

Virtu Financial is a prominent global financial services company that specializes in market-making and proprietary trading. Founded in 2008 by Vincent Viola and Doug Cifu, the firm has grown to become a major player in the high-frequency trading (HFT) industry and electronic market making.

Virtu Financial is headquartered in New York City and operates in various financial markets around the world.

The Founders

Vincent Viola — Vincent Viola, a U.S. Army veteran, had an illustrious career in the financial industry before co-founding Virtu Financial. He previously served as Chairman of the New York Mercantile Exchange (NYMEX), where he played a crucial role in modernizing the exchange and making it a global leader in energy and commodity trading.

Doug Cifu — Doug Cifu, a lawyer and finance professional, brought legal and financial expertise to the partnership. He had a background in securities law and investment banking before joining forces with Vincent Viola to establish Virtu.

Key features and aspects of Virtu Financial

High-Frequency Trading (HFT) — Virtu is known for its expertise in high-frequency trading, a strategy that involves executing many trades in a fraction of a second. This requires advanced algorithms, cutting-edge technology, and ultra-fast execution capabilities.

Market-Making — Virtu acts as a market maker in various asset classes, including equities, options, futures, fixed income, and foreign exchange. As a market maker, the company provides liquidity to financial markets by buying and selling securities. This facilitates smoother trading and helps narrow bid-ask spreads for market participants.

Algorithmic Trading — The firm heavily relies on complex trading algorithms to make rapid trading decisions. These algorithms are designed to exploit market inefficiencies, price discrepancies, and arbitrage opportunities.

Global Presence — Virtu Financial operates in financial markets worldwide, making it a globally recognized market maker and trading firm. It has offices in major financial centers across North America, Europe, and Asia.

Technological Innovation — The firm is known for its technological innovation and commitment to staying at the forefront of trading technology. Virtu continually invests in cutting-edge infrastructure and systems to maintain its competitive edge.

Acquisitions — Over the years, Virtu Financial has expanded its operations through strategic acquisitions. One notable acquisition was its purchase of KCG Holdings, another major market-making firm, in 2017, which significantly bolstered Virtu’s presence in the industry.

Profitability: Virtu Financial has consistently been profitable, thanks to its ability to profit from small price differentials in financial markets. The firm’s trading operations generate revenue from these small spreads.

Stay tuned!

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