Virtu Financial buys Nyse Amex designated market maker

Source: Nyse Euronext

Virtu Financial ("Virtu") today announced the acquisition of the Designated Market Maker ("DMM") business from Cohen Capital Group's Nyse Amex DMM Unit and Virtu's entrance as a registered floor-based market maker at the New York Stock Exchange ("Nyse") and Nyse Amex, wholly owned subsidiaries of Nyse Euronext (NYX).

The acquisition was completed today and terms of the deal were not disclosed.

"This acquisition is consistent with Virtu's primary business objective of providing highly efficient, fully obligated, customized liquidity to investors across all markets. We are excited about playing an important part of the NYSE and NYSE Amex marketplace. We look forward to working with our listed company partners and providing our unique liquidity to their valued investors," said Vincent Viola, Chairman and CEO of Virtu Financial, LLC.

As a result of the close of the acquisition, Virtu will act as the DMM for approximately 170 companies and 80 closed-end funds, for a total of about 250 listed securities at the NYSE Amex. This acquisition makes Virtu the largest DMM by number of DMM assignments on the NYSE Amex. Virtu will assume responsibilities for its new DMM assignments beginning today, December 12, 2011.

"Virtu is an innovator whose addition to the NYSE and NYSE Amex DMM community will prove beneficial to issuers, investors and our market model," said Joe Mecane, Executive Vice President, NYSE Euronext. "We welcome Virtu to the NYSE and NYSE Amex, and we are fully confident in the firm's ability to serve our customers and to fulfill the important obligations of DMMs."

Designated Market Makers are accountable for maintaining a fair and orderly market for NYSE listed securities via physical and electronic auctions. DMMs facilitate price discovery and act as dedicated liquidity providers, which results in tighter quoted spreads, deeper markets and greater price stabilization for the securities they service. DMMs are required to meet stringent NYSE depth and continuity standards.

Virtu is currently a Supplemental Liquidity Provider ("SLP") on the NYSE, a Lead Market Maker on the NYSE Arca and a liquidity provider on over 100 exchanges and trading venues around the world. 

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