Doug Cifu says Virtu is “the ultimate market making firm” following a 50% surge in trading income.
Deal creates major force in market making and technology.
The acquisition completes Two Sigma's journey to expand into the US options market, as it looks to reinvigorate Timber Hill business.
Firm said the shutdown of its options market making business is expected to cost $25 million.
Options market making business to be phased out over next few months.
Virtu Financial has seen its buy-side clients increase as a result of the impending MiFID II regulation.
Market making revenues outside of US equities has declined 60% since the first quarter of 2016.
Virtu Financial reported trading sales were down 25% in the third quarter this year.
The Trade speaks to Virtu Financial's chief executive officer, Doug Cifu about the firm's often misunderstood business model, its move into the derivatives swaps market, and European regulation.
A slow up-take in electronic trading of OTC derivatives has hampered Virtu's ambitious market-making plans.