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Is This The Top? HFT Firm Files For IPO

Tyler Durden's picture




 

Having sold his 7-bedroom NY mansion, the CEO of Virtu Financial (the high-frequency-trading firm that accounts for 5% of US equity trading volume) appears to believe investors are ripe for him to IPO his firm. As The FT reports, New York-based Virtu is aiming to raise between $250-$350m from a listing that would make it the first electronic trading business that trades with its own funds to launch an IPO. The question, of course, is, will Virtu be the top-ticking, greater-fool-finding IPO of this bubble that Blackstone was for the last one?

 

Via The FT,

Virtu, a global proprietary electronic trading company that employs high frequency strategies, is aiming to raise around $300m from a listing that would value it at around $3bn, as it too seeks a market debut around that time, some of these people and others added.

 

...filed confidentially under a provision of a recent US securities reform act which allows companies with revenues of less than $1bn to keep the process confidential until nearer the time of an IPO.

 

...

 

New York-based Virtu is aiming to raise between $250-$350m from a listing that would make it the first electronic trading business that trades with its own funds to launch an IPO.

 

Goldman Sachs is leading the listing along with JPMorgan Chase and Sandler O’Neill. The banks and Virtu, which is part-owned by Silver Lake Partners, declined to comment.

 

Virtu’s prospectus will provide a rare glimpse into the world of a secretive high-speed trading firm. The company, which employs about 150 people, had earnings of about $275m before interest, taxes, depreciation and amortisation last year, up from about $240m a year before, one person added.

 

Its listing will be a milestone for Vinny Viola, an Army sergeant and former chairman of the New York Mercantile Exchange, who founded the business in 2002. Virtu’s board includes General John Abizaid, the former commander of the US Central Command, this person added.

 

Mr Viola, presently chief executive, will assume the role of executive chairman upon the listing and Douglas Cifu will take on the chief executive role, one person said. Chris Concannon, a former Nasdaq executive who joined the company in 2009, will become chief operating officer.

 

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Mon, 02/24/2014 - 16:07 | 4472060 G.O.O.D
G.O.O.D's picture

The shit here has gone full retard

Mon, 02/24/2014 - 16:25 | 4472113 camaro68ss
camaro68ss's picture

sounds like a great buy for suckyburg

Tue, 02/25/2014 - 00:49 | 4474128 Oh regional Indian
Oh regional Indian's picture

And VIOLA, it's gone!

 

Vinny Viola-ter

Vinny Vidi Vichy

You have V, we have V2 , Make that V3

Vinny Viola's Virtu-al Milking Scheme

 

On and on.

 

Why do these actors have such strange names?

ori

 

Mon, 02/24/2014 - 16:38 | 4472135 hobopants
hobopants's picture

Previous video link was a hoax sorry about that, guy made up the subtitles apparently lol.

Mon, 02/24/2014 - 16:07 | 4472063 PontifexMaximus
PontifexMaximus's picture

Yes! Who will be the bookrunner?

Mon, 02/24/2014 - 16:07 | 4472064 SilverIsKing
SilverIsKing's picture

They should hire Jan Koum to help negotiate a sale of the company to Farcebook.

Mon, 02/24/2014 - 16:14 | 4472065 skwid vacuous
skwid vacuous's picture

Mkt will top when I-con croaks, IMO.. or maybe Alan Greedscam,  

Mon, 02/24/2014 - 16:18 | 4472094 Pure Evil
Pure Evil's picture

Could you throw in a Soros and Buffet with that?

Mon, 02/24/2014 - 16:32 | 4472141 Levadiakos
Levadiakos's picture

Tossed with some ssodium enriched Jamie 

Mon, 02/24/2014 - 16:08 | 4472069 ItsDanger
ItsDanger's picture

Good, I always like to see more potential short candidates.

Mon, 02/24/2014 - 16:08 | 4472071 fonzannoon
fonzannoon's picture

It's not the top.

Mon, 02/24/2014 - 16:19 | 4472101 new game
new game's picture

this is exactly what happened before wheelbarrows replaced wallets and purses in germany...

Mon, 02/24/2014 - 16:22 | 4472108 fonzannoon
fonzannoon's picture

Yes I'll never forget when that Weimar HFT firm got sold and all hell broke loose :)

Mon, 02/24/2014 - 16:26 | 4472116 Pure Evil
Pure Evil's picture

Wheelbarrows are so '90's.

Once Yellen gets done you'll be needing this to haul your Zimbabwean paper around.

Mon, 02/24/2014 - 16:34 | 4472146 Levadiakos
Levadiakos's picture

Yeah, like 9 years before

Mon, 02/24/2014 - 17:03 | 4472244 Cacete de Ouro
Cacete de Ouro's picture

When VRTU (or whatever it's ticker turns out to be) IPOs on Nasdaq (and it would have to be Nasdaq given the ex Nasdaq exec becoming COO), then look out below for the curse of the HFT IPO, BATS Global Markets style... and with a nod to Knight Capital style..

Mon, 02/24/2014 - 17:19 | 4472324 astoriajoe
astoriajoe's picture

I imagine Coach could do a nice leather-trimmed wheelbarrow that people would want.

Mon, 02/24/2014 - 16:09 | 4472072 More_sellers_th...
More_sellers_than_buyers's picture

so its a prop firm, what the hell would a shareholder want to own that for?

Mon, 02/24/2014 - 16:10 | 4472077 nanex
nanex's picture

I sure hope their math and logic skills have improved since September 2013

 

--nanex

Mon, 02/24/2014 - 16:12 | 4472078 i_call_you_my_base
i_call_you_my_base's picture

Now you can quote stuff your own shares.

Mon, 02/24/2014 - 16:13 | 4472079 2500saturdays
2500saturdays's picture

1/6 the 'value' of whaaaaaattttts aaaaaaappppppp .

pikers.

Mon, 02/24/2014 - 16:13 | 4472080 john milton
john milton's picture

http://www.bundesbank.de/Redaktion/EN/Interviews/2014_02_19_thiele_hande...

Bubba explains why US only gave Germany back 5 tonnes of gold
Mon, 02/24/2014 - 16:13 | 4472081 Sudden Debt
Sudden Debt's picture

THEY'RE SO SUCCESFULL THAT THEY ONLY NEED 300 MILLION! what a deal...

Mon, 02/24/2014 - 16:15 | 4472084 Sudden Debt
Sudden Debt's picture

Actaully...

A HF trading company....

that manipulates quotes on stocks....

inside info isn't a unknown factor in that biz...

now... has it's own stock... with 100% inside info....

and they can run their own stock through their computers...

nice...

Mon, 02/24/2014 - 16:19 | 4472100 LawsofPhysics
LawsofPhysics's picture

correct, no ponzi market ever comes to an end by going to zero, it's the paper that the "market" is priced in that goes to fucking zero...

Same as it ever was.

Mon, 02/24/2014 - 16:30 | 4472134 disabledvet
disabledvet's picture

really? is that how it works? "markets sour and the currency drops to zero"? cuz...that ain't how it worked in the 90's and that ain't how it's working now.

Capital is FLOODING into the USA right now...credit is readily available "no matter how stupid the idea"...these guys are certainly doing the right thing if they're "top calling."

That would be your top not their's.

Still...can someone explain Facebook again?
They're talking VoiP for free...and I'm really curious how this helps the telecoms.

Maybe Facebook could buy them I guess...but then they'd have to fire everybody "but ten people" before they'd agree to the deal.

No wonder Wall Street is celebrating Operation Barbarossa.

Mon, 02/24/2014 - 16:46 | 4472189 LawsofPhysics
LawsofPhysics's picture

Short term, sure, the dollar looks like the cleanest dirty shirt.  Short term.

Mon, 02/24/2014 - 16:22 | 4472109 Pure Evil
Pure Evil's picture

But, the question remains.

Can you get channel stuffed by some other algo while trying to channel stuff your own stock.

Me thinks Vinny's gonna get whacked.

Mon, 02/24/2014 - 16:17 | 4472091 Kaiser Sousa
Kaiser Sousa's picture

fucking maroons...

what a shitshow this country has become, is, always been....

hope ya'll still stackin...

with a quickness that is.........

Mon, 02/24/2014 - 16:18 | 4472092 LawsofPhysics
LawsofPhysics's picture

Please, 65 billion out of thin fucking air says it isn't...

Mon, 02/24/2014 - 16:20 | 4472102 10mm
10mm's picture

Look at the former military hacks involved. 

Mon, 02/24/2014 - 16:26 | 4472118 Levadiakos
Levadiakos's picture

It;s unclear to me why this would mark a market top. I don't believe HFT trading is predicated on market levels any more than the  next biotech or the next social media concern that files to list

Mon, 02/24/2014 - 16:26 | 4472119 Levadiakos
Levadiakos's picture

It;s unclear to me why this would mark a market top. I don't believe HFT trading is predicated on market levels any more than the  next biotech or the next social media concern that files to list

Mon, 02/24/2014 - 16:23 | 4472107 SillySalesmanQu...
SillySalesmanQuestion's picture

High Frequency Fucking meets Initial Public Orifice...

Mon, 02/24/2014 - 16:25 | 4472114 Dr. Engali
Dr. Engali's picture

The top won't happen until every last person with paper assets moves back into the market chasing returns. Probably around Dow 20,000. Once they are back in Wallstreet can rip them a new asshole.

Mon, 02/24/2014 - 16:36 | 4472157 disabledvet
disabledvet's picture

the whole world is buying into this thing.
strong dollar is fueling an even greater inflow.

if you're short the dollar here you're gonna get crushed (again.)
"all eyes on Moscow."

Mon, 02/24/2014 - 17:10 | 4472194 LawsofPhysics
LawsofPhysics's picture

How's that going to work out again for servicing existing debt and all those unfunded liabilities? 

Uncle sam needs a loan bitch, get your checkbook out.

Mon, 02/24/2014 - 17:11 | 4472288 yogibear
yogibear's picture

Soon enough it will reverse. I wouldn't short until the Fed un-tapers. 

It's predictable the Fed will reverse tapering because there is no debt ceiling now. They have no limit in adding debt/borrowing.

Mon, 02/24/2014 - 17:06 | 4472267 Sudden Debt
Sudden Debt's picture

well, America has IPO's of weed plantations... good for gdp... yes...
I wonder how a proud American that lived in the 80's would look at America now if he stepped out of a timemachine...

America has changed into McDonalds the clown...

Mon, 02/24/2014 - 17:07 | 4472272 yogibear
yogibear's picture

No top until the Fed triggers a US dollar crash with all of it's printing. Tapper will not last too much longer.

No debt ceiling so more debt and printing can occur,

Mon, 02/24/2014 - 17:31 | 4472352 Godisanhftbot
Godisanhftbot's picture

 only interested in HFT trading bitcons.

Mon, 02/24/2014 - 18:04 | 4472486 ZaphodBeeblebrox
ZaphodBeeblebrox's picture

Perhaps Virtu is one of the firms whose Buffet newsfeed was cut. Putting future sure things into question for them. http://www.theglobeandmail.com/report-on-business/international-business...

Mon, 02/24/2014 - 18:16 | 4472509 combatsnoopy
combatsnoopy's picture

HFT that makes up 5% of the trading volume has obvious revolving doors with the US government and Goldie Sachs.  And it's going to IPO.  I only wish I had Korean/Dutch supersonic gaming bandwidth with enough leverage to torture this little beast with naked puts.

"...the CEO of Virtu Financial (the high-frequency-trading firm that accounts for 5% of US equity trading volume) ......Government Sachs is leading the listing along with JPMorgan Chase and Sandler O’Neill. The banks and Virtu, which is part-owned by Silver Lake Partners, declined to comment.
 

Virtu’s prospectus will provide a rare glimpse into the world of a secretive high-speed trading firm. The company, which employs about 150 people, had earnings of about $275m before interest, taxes, depreciation and amortisation last year, up from about $240m a year before, one person added.

Its listing will be a milestone for Vinny Viola, an ARMY SERGENT" and FORMER CHAIRMAN OF THE NY MERCANTILE EXCHANGE, who founded the business in 2002. Virtu’s board includes GENERAL John Abizaid, the former commander of the US CENTRAL COMMAND, this person added.

 Mr Viola, presently chief executive, will assume the role of executive chairman upon the listing and Douglas Cifu will take on the chief executive role, one person said. Chris Concannon, a FORMER NASDAQ EXECUTIVE who joined the company in 2009, will become chief operating officer."

Because the Army has the sharpest tools in the shed.  The Air Force developed the net.  I wonder if all of these "rocket scientists" even know what they're doing. 
Well being that these jerks are financing their stepped on cocaine addiction with tax dollars because they're not pretty enough to get into rehab.  Why would our Army leaders condone this? 
http://www.businessinsider.com/what-its-like-to-earn-10m-on-wall-street-and-blow-it-all-2014-2?pundits_only=0&comments_page=1#comment-530ac281eab8ea2214e23233|
(the answer is obvious). 

Gees, why would Americans look fondly at a "radical" libertarian party? 

Mon, 02/24/2014 - 19:30 | 4472833 Carl Popper
Carl Popper's picture

When a business wants  to exchange its stock for cash on the public markets,  that simply means they consider cash more valuable than stock at the selling price. 

 

The real value was squeezed out a long time ago. IPO's are a flipper's game.  It is for speculators not investors. 

 

If you want to gamble then Texas hold-em is more fair.  Stick to index funds for the stock allocation of your portfolio.  Then spend your free time in more interesting pursuits. Alpha does not exist.  If it does certainly you don't have it and neither do I.

 

 

Mon, 02/24/2014 - 22:29 | 4473537 Dead Canary
Dead Canary's picture

So is this a case of rats leaving a sinking ship. Squeeze out a little extra profit before the coming big crash?

(Your thoughts pleeze. I'm not the sharpest apple in the barrel)

Tue, 02/25/2014 - 01:40 | 4474240 naughtius maximus
naughtius maximus's picture

Now they can front run their own stock hahaha!

Tue, 02/25/2014 - 02:09 | 4474245 JuliaS
JuliaS's picture

N'dizgon!

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