High-frequency trading firm Virtu Financial is now becoming a market maker in Europe.
Virtu, located in New York, is now going to bring its algorithms and electronic trading prowess to the newly formed Global Markets Exchange (GMEX). Virtu said it will be a liquidity provider out the chute and at the launch of the venue.
The speed trading firm will participate on GMEX’s nascent Interest Rate Swap Constant Maturity Future (CMF) contracts. Orders will be matched on the GMEX exchange platform, with trade confirmation and clearing occurring at Eurex.
“This decision to expand liquidity provision to GMEX Exchange is a logical extension of Virtu’s business objective to lower costs for both retail and institutional investors by supplying competitive bids and offers, without seeking to take on risky directional positions.” said Douglas Cifu, Virtu Financial’s chief executive.“The GMEX CMF contract offers an innovative lower margin exchange traded alternative to OTC interest rate swaps for hedging.”
GMEX’s exchange is scheduled to launch in the early part of April 2015 subject to regulatory approval for the trading and clearing of the CMF at Eurex. GMEX received its regulatory approval by the UK Financial Conduct Authority in December 2014.
