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Virtu Financial (VIRT) Adds Features to Its US POSIT ATS

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Virtu Financial, Inc. (VIRT - Free Report) recently announced that its US POSIT alternative trading system (ATS) will change its mode of operations. The upgrade will include new matching rules and the launch of subscriber segmentation.

The new changes will divide subscribers into three tiers, namely, Neutral, Move Towards and Move Away using a markout methodology that employs long-time horizons. Subscribers will now be able to opt out with the Move Towards or Move Away segments on an individual order basis.

Several changes to POSIT ATS has also been made over time. POSIT ATS will also take up a technological rebuild through the rest of 2021 for improving overall system performance for POSIT ATS subscribers.
This leading provider of financial services and products took up initiatives to align with the interests of institutional investors executing long-duration parent orders.

The additions reinforce the company’s commitment to provide better services to its clients. All these initiatives poise it well for growth.
This financial miscellaneous services provider announced that in the first quarter of 2021, its request-for-quote or RFQ-hub surpassed the prior-quarter’s record in single stock options by a whopping 37%.

The bilateral multi-asset and multi-dealer request for quote platform delivered solid national trading numbers for the first quarter, which came in at $29.7 billion. In this regard, asset managers are opting for a RFQ-hub to negotiate derivatives transactions owing to their liquidity, transparency, operational efficacy, audit trail, etc.

The COVID-led market volatility contributed to the company’s overall solid performance, which gains traction from market unpredictability.

This apart, strength in its Execution Services and Market Making segments aided the overall upside. In the last reported quarter, the company’s revenues of $728 million beat the consensus mark by 32.1%, driven by higher trading volumes in its U.S. equities despite lower volatility.

Shares of this company have gained 4% in the past year, underperforming its industry’s growth of 6.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

The company currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the same space are HoulihanLokey, Inc. (HLI - Free Report) , PJT Partners Inc. (PJT - Free Report) and Intercorp Financial Services Inc. (IFS - Free Report) , each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HoulihanLokey, PJT Partners and Intercorp Financial managed to deliver a trailing four-quarter earnings surprise of 41.25%, 59.4% and 257%, respectively, on average.