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Breakingviews: Patience of Virtu

Wednesday, April 02, 2014 - 02:56

April 2 - The renewed kerfuffle over high-frequency trading may have squelched Virtu's IPO plans. Breakingviews editors wonder why it was going public in the first place.

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The issue of high frequency trading has exploded back into the news with the new book by Michael Lewis. Called flash boys. And they're already at least one potential casualty from it. The company called virtue. Which was going to go public sounds like it may not be now Richard what exactly and cuts. It's like it's at least this is the chief financial it's sort of a high frequency trading it. Sort of I think it's sort of distinguishes itself a little bit the point of lewis' book is to say high frequency traders who operate at some of the micro second level. Of rigging the equity markets in the US. By trading. So quickly that it they can be they can -- -- in front of trading get in front of a trail it's making its way -- optical fibers from one of them now many trading. Venues. To another right and so the people is virtue certificate to the -- rights a lot of high frequency trading. Seems to be about. The following lamented in the -- -- you see in order to maybe even if before trade as the ladies in order coming -- this sudden price yoga says that's moving the markets -- you. You trade you you put it at different office somewhat errant and you make seemingly on the direction of the market -- but she says it doesn't do that that it instead it looks at. Is with somebody offering to buy recently is with some effort to sell something and that their overcharges on that gap. Irrespective of whether markets -- But they're too close they would also say they don't put out office will. -- to to file so that they've been withdrawn that that's another criticism opponent that we -- at the higher frequency trading in the paint these things down then withdraw them. But these distinctions there might be able to find for the market -- -- -- -- -- for the markets that what you what you have with the chief financial is that a proprietary trading threats of a ton of cash. Actually paid out nearly 700 million dollars to. There investors in the past three is. There's there's no need for capital unit that was also this question I guess that they've -- for almost a perfect trading record which is right there sales sales one today in the -- War for ideas -- you raise the question what article published in the -- got right up Michael lewis' side Pryor these were these guys -- right and that is why don't. That much of the casualty right that it really need to give public they do have a private equity investments overly. I think that's part of integration to get silver lake and exits or at least politics but I also. You go to very generous like you look at recently at least until we have this link to this but these guys might have been valued like exchange exchange is doing very well in the US right now to write times and earnings. Threw up billion dollars that she that would have been pretty good now. If if -- on sell off the full -- attention this week is that the theory issues. 1015 so right at that that nearly every ticket everywhere maybe that would have to leave it while. And completely tool or or even noble art we'll be back more breaking news tomorrow.

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Breakingviews: Patience of Virtu

Wednesday, April 02, 2014 - 02:56

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