Virtu Financial IPO

An IPO for High Frequency Trading firm Virtu Financial $314m

The plan has been in play for a long time but the bestseller “The Flash Boys” has meant that this IPO was put on hold for 1 year. Virtu thinks that the negative publicity is long gone and investors are ready to take up the IPO given financial results.

Virtu is seeking a valuation of around $2.5b and around 17-19 a share. The company was able to deliver a solid 9% growth YoY with revenue north of $700m.

Virtu is compliant with all SEC requirements including its membership of FINRA and is the world largest market maker in over 220 markets is all classes including fixed income, currencies, equities, futures and commodities.

The Leadership team at Virtu is impressive with Executive Chairman Vincent Viola who was the former chairman at the New York Mercantile Exchange. CEO Douglas Cifu is a former partner at Paul Weiss. CFO Joseph Molluso was previously a Managing Director in Investment Banking at J.P. Morgan just to name a few.

We recommend a long play on this stock as the IPO will be worth every penny. High Frequency trading systems has ensured that Virtu has had 99.9% profitable trading days and will continue to do so unless we see an additional scrutiny or regulation to level the playing field for other traders.

In the meanwhile a solid ROI is expected here with decent dividends. Buy all you can.

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