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Virtu Financial's (VIRT) FI ACE to Offer Liquidity Management

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Virtu Financial, Inc. (VIRT - Free Report) recently expanded its multi-asset transaction cost model offering with the introduction of Fixed Income Agency Cost Estimator (FI ACE).

Notably, FI ACE is equipped with a pre-trade analytics tool that contains effective liquidity and risk management capabilities. The new tool will not only help clients in taking informed decisions about constructing their portfolios but also provide an insight into the transaction costs in the fixed income markets.

Moreover, the cost estimates calculated by FI ACE is given after accessing the collective proprietary trade information contained in Virtu Financial’s Global Peer database for Fixed Income (GPFI). Notably, this information has been provided by the company’s fixed income TCA (Transaction Cost Analytics) clients itself.

Apart from liquidity and risk management capabilities, the new tool can even be utilized for assigning liquidity score for individual bonds, which paves the way for building up a cost-effective portfolio.

The timing of FI ACE launch seems to be an opportune one as there has been an increased demand for liquidity of corporate and sovereign bonds in the fixed income markets. The move also bodes well particularly for algorithm and program traders, and regulators globally, who are keen on managing liquidity and risk aspects of their portfolio.

Worthy of mentioning, FI ACE has an established presence in the fixed income market evident by its coverage of approximately 37,500 North American and 25,000 international corporate and agency bonds, 4,000 European sovereign bonds and about 450 US Treasury instruments, as of October 2020.

Shares of this Zacks Rank #5 (Strong Sell) company have surged 41.1% in a year against the industry’s decline of 20.3%.

The company has been launching several products in a bid to benefit its TCA investors. This September, it expanded its suite of execution services with the introduction of Prism Frontier. In August, the company launched a TCA product for FX algo execution. These initiatives have clearly reinforced the company’s primary goal of supplying liquidity in the global markets and devising transparent trading solutions for its clients.

Stocks to Consider

Some better-ranked stocks in the same space include Equitable Holdings, Inc. (EQH - Free Report) , Moody's Corporation (MCO - Free Report) and Columbia Financial, Inc. (CLBK - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Equitable Holdings, Moody’s and Columbia Financial have a trailing four-quarter earnings surprise of 7.97%, 17.51% and 2.89%, on average, respectively.

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