Virtu Financial has partnered with the Tokyo Stock Exchange to enhance the efficiency of large-scale ETF transactions. This collaboration aims to improve liquidity and streamline operational processes for institutional investors, reducing transaction costs through better access to real-time market data.
Integration with CONNEQTOR Platform
Virtu Financial has integrated its Triton Valor execution management system (EMS) with the Tokyo Stock Exchange’s CONNEQTOR platform, a tool designed to facilitate seamless ETF trading. The CONNEQTOR platform allows investors to request simultaneous quotes from multiple market makers, providing a more efficient means of executing large transactions. This integration is a response to increasing client demands for improved liquidity and enhanced trading workflows.
Launched in 2021, CONNEQTOR has grown to become a critical platform for ETF trading in Japan, offering solutions for large transactions that may not be easily executed through traditional market mechanisms. By July 2024, the platform reached a record monthly trading value of 295.5 billion JPY, underscoring its growing prominence in the market.
With the new connection to Triton Valor, institutional investors can now access real-time liquidity more effectively, leading to reduced transaction costs and improved operational efficiency. The Tokyo Stock Exchange, a part of the Japan Exchange Group (JPX), continues to experience growth in trading volumes, with an average daily volume exceeding 5 trillion JPY.
Virtu’s Strong Financial Performance
Virtu Financial’s recent second-quarter performance has been impressive, with significant gains across key financial indicators. In Q2 2024, the company reported a 36% increase in revenue, reaching $693 million. Net trading income also surged by 39% to $426.4 million, compared to $306.2 million in the same period last year. Net income for the quarter rose to $128.1 million, a considerable jump from $29.5 million in Q2 2023.
In terms of earnings per share (EPS), Virtu saw a significant rise, with basic and diluted EPS increasing to $0.71 from $0.16 the previous year. On an adjusted basis, EPS reached $0.83, marking a 124% increase year-over-year.
In June, Virtu also announced plans to raise $500 million through debt financing, aiming to restructure its financial obligations. This initiative is part of a broader effort to optimize the company’s financial position and reduce existing debt.
The integration of Triton Valor with CONNEQTOR reflects Virtu Financial’s commitment to improving trading efficiency for institutional investors while continuing to strengthen its financial position.
