net trading income

Virtu Financial: Master Exploder, Part II

"Empty your mind, be formless, shapeless — like water." - Bruce Lee   In "Master Exploder, Part I," we presented a first pass at Virtu's Q1 2020 earnings release given the impacts of unprecedented volatility in March. If you're tracking closely - or merely fascinated by - this neck of the woods, be sure to check in on that one, and the one on Flow Traders' Q1 earnings that preceded. Both releases presented outstanding, one-of-a-kind results. As noted in the last Virtu post, we were waiting for some additional data to come out before wrapping our thoughts on the Q1 impacts, both specifically and more generally. After some of that additional data has come out, here we are - and the results are oddly surprising (as in, not what was expected). In the chart, below, Alphacution presents the components of net trading income (NTI). This is a rolling, quarterly view of the composition of NTI that we have updated from time to time here on the Feed. You may recognize [...]

By | 2020-05-22T00:25:15+00:00 May 21st, 2020|Alphacution Feed|

Saved By Zero? Virtu’s 30 Quarters of Payments For Order Flow

"The idea of the song is how great it is to get back to zero." - Cy Curnin, The Fixx frontman, in reference to the Buddhist mantra, Śūnyatā Today, Amazon announced that it would be launching cashierless grocery stores in 2020. Immediately, a thought-bubble arose above my head and played a scene from the Illinois Tollway when my E-ZPass battery went dead, and I spent a half hour - the lane I was in all backed up with frustrated travelers - pushing buttons in the vain attempt to cause a person to show up. Just send me a bill for the busted tollgate next time... No, thank you. I don't want to scan and bag my own groceries... I don't want to go fill my own plate at restaurants... And, I don't want to trade in a market that has been sanitized of all intermediaries with a pulse...  Because that's where we're headed; the exact wrong and utterly Simpletonian outline of a "free market," where all levers conspire to deliver [...]

By | 2020-03-02T17:04:02+00:00 November 20th, 2019|Alphacution Feed|

Virtu Financial: Q3 2019 Update #1

“Making mountains out of molehills sells more books than a study of molehills." - Cliff Asness With Virtu's Q3 2019 earnings out this past Monday (Nov 5), but the Q3 2019 13F report coming out next week, we are going to keep most of our powder dry for this one. However, since much of what we are trying to do here is convert new information into new "shapes" - and therefore, take the occasional opportunity to conserve our words - we offer a couple updated pictures. You might draw your own conclusions... One thing's for sure, the concentration of market making and trading related revenue has been notably diluted since the closing of the ITG acquisition in March (2019). More coming over the next couple weeks... Support the Feed! Individual Subscription Options Annual Subscription : $275.00 USD - yearly Monthly Subscription : $25.00 USD - monthly Note: Business credit cards and bank accounts can be used via our PayPal payment portal. Alphacution is in the intelligence business. For those of [...]

By | 2020-03-02T17:08:18+00:00 November 7th, 2019|Alphacution Feed|