Virtu’s trading income soars as CEO lauds ‘unified firm’

$1.4 billion acquisition of KCG in 2017 results in 50% increasing in trading income for Virtu.

Virtu Financial has reported net trading income of $406 million representing a 191% increase from the same period in 2017.

The market maker finalised its acquisition of KCG in July 2017 and saw an immediate pay-off in Q4 2017 with a 50% rise in trading income.

In Q1 2017 though, Virtu has begun fully reaping the benefits of the deal with total revenues increasing 453% to $815.1 million.

Chief executive officer Doug Cifu described the now combined business as “the ultimate market making firm” in Q4 and has now added further praise on the new market making giant.

“Our continued successful integration enabled this quarter’s outstanding performance in this favorable environment. The first quarter of 2018 saw the return of volume and volatility,” said Cifu.

“Our profitability and margins this quarter demonstrate the earnings power and competitive advantage of having a scaled and unified firm. As our integration progresses we see opportunity for continued superior performance.”

Since it acquired KCG, Virtu has migrated some of the firm’s legacy market making trading strategies onto its platform. Virtu said the move has led to increased efficiency and execution performance which is driving profits for the market making business.

Virtu completed its $1.4 billion acquisition of KCG in July last year, following an unsolicited bid for the firm in March.

At the time of the bid, both firms had seen revenues drop across trading and market making business units due to low volatility and a dip in trading volumes.