Virtu Financial invests in Japanese proprietary trading system

Virtu Financial has invested in proprietary trading system firm Japannext, as it expands reach in Asia.

US market maker Virtu Financial has made a small investment in Asia’s SBI Japannext, a proprietary trading system, as part of its push into the region.

SBI Japannext currently has 29 local and global brokerage house members, and claims to be the oldest proprietary trading system in Japan.

Its chief executive officer, Chuck Chon, said the investment means Japannext has gained “a global leader in electronic trading as a partner.”

He added: “As a multi-asset liquidity provider in markets around the world, Virtu brings a breadth of experience and expertise to support Japannext’s growth strategy.”

The terms of Virtu’s investment were not disclosed, but it has been described as a “strategic minority investment.”

Douglas Cifu, chief executive officer at Virtu, explained this is an “opportunity for Virtu to increase its footprint within Asia.”

He said: “Japannext's best-in-class technology and history of innovation have allowed them to become the leading proprietary trading system in Japan, and make them a natural partner for Virtu in the region”

Cifu is to join Japannext’s board of directors as part of the investment.