Virtu Financial, Inc. (Nasdaq: VIRT), a global market maker, broker and provider of global financial services technology, announced on Thursday the official formation of RFQ-hub Holdings LLC to support the growth of RFQ-hub, Virtu’s bilateral multi-asset and multi-dealer request for quote platform.
According to the press release, Virtu is joined by liquidity providers Citadel Securities, Flow Traders, Jane Street Capital, asset manager BlackRock and electronic trading platform MarketAxess as founding consortium members. In addition, MarketAxess will take a significant minority stake in the platform.
A focus on equity and fixed income listed and OTC derivatives, structured products and exchange-traded funds (ETFs) is emphasized in the RFQ-hub, which helps asset managers and liquidity providers electronically deliver aggregated and competitive liquidity, streamline workflows and improve pricing. Its objective is to foster the development of a global institutional platform designed specifically for these instruments in order to support RFQ-hub’s next phase of development.
“The founding members of this consortium represent a diverse array of market participants organizing for the common goal of improving access and execution of ETFs and derivatives for institutional investors. Together, we believe we can expand RFQ-hub’s multi-asset offering to clients across the globe,” Joseph Molluso, the Co-President and Co-Chief Operating Officer of Virtu Financial, commented.
Recent Financial Results
According to Virtu Financial Inc.’s first-quarter 2022 financials, the company’s total revenue declined by 30.7%. Total revenue was $701.3 million, which was significantly lower than the $1.01 billion generated in Q1 of last year. Lower trading volume in the US capital markets during the past three months was cited as the reason for the company’s revenue slump. The company’s services have been less popular for several quarters.
In addition, Virtu revealed that its trading income declined by 35.7% to $522.3 million. Commissions and technology services brought in $154.6 million, which is 19.3% less than the previous year.
