Virtu Financial, an electronic market making firm, has established a presence as a floor-based market maker in the US, following the purchase of Cohen Capital Group’s designated market making (DMM) slots at NYSE and NYSE Amex.
The acquisition gives Virtu DMM status for 170 companies and 80 close-end funds on NYSE Amex, making it the largest DMM by number of assignments on the exchange. The firm began is market making obligations on 12 December. The terms of the deal were not disclosed.
“This acquisition is consistent with Virtu’s primary business objective of providing highly efficient, fully obligated, customised liquidity to investors across all markets,” said Vincent Viola, chairman and CEO of Virtu Financial. “We look forward to working with our listed company partners and providing our unique liquidity to their valued investors.
DMMs hold responsibility for maintaining a fair and orderly market for NYSE-listed securities via physical and electronic auctions. Their role is to facilitate price discovery and act as dedicated liquidity providers, with the aim of achieving tighter quoted spreads, deeper markets and greater price stabilisation for the securities they service.
Virtu is also a supplemental liquidity provider on NYSE, a lead market maker on NYSE Arca and a liquidity provider on over 100 exchanges and trading venues around the world.