@VirtuFinancial Pulls the Trigger on @KCG: Here’s a Bit More…

Here's an update from the initial post on March 15, 2017... The first wave of commentary is in, and the consensus seems to be that the unsolicited bid by Virtu for KCG is all "about the little guy." In other words, this deal is all about the position of a wholesaler relative to retail order flow. Maybe so. There is also some suggestion that these firms are not competitors; that, in fact, they may be complementary. Ok, I guess. But, widen your interpretation of the situation a bit and consider this: According to the 2016 Virtu 10-K, it is disclosed that, "We make markets by providing quotations to buyers and sellers in more than 12,000 securities and other financial instruments on more than 235 unique exchanges, markets and liquidity pools in 36 countries around the world." The notable liquidity venues are as follows, (and notice the part about "major private liquidity pools.") Since #HFT and narratives about highly-automated trading strategies are crowded topics among capital markets punditry, Alphacution has not followed the nuances close enough to know for sure whether the sponsor [...]

By | 2017-04-28T09:57:07+00:00 March 21st, 2017|Alphacution Feed|