VIRT - Earnings call 4 2023 | Virtu Financial, Inc.

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Operator

Hello, and welcome to the Virtu Financial 2023 Fourth Quarter Results. My name is Alex, and I will be coordinating the call today. [Operator Instructions]. I'll now hand it over to your host, Andrew Smith of Investor Relations. Please go ahead.

Andrew Smith

good and Alex, you, morning, everyone. Thank for you joining us. Thank

Cifu, released and us Joseph are Our Mr. on fourth and on Molluso, Officer. morning Cindy were results Douglas have Co-Chief we With quarter our available Co-President Officer; Operating Financial this our Lee, morning's our call, Chief Chief and our Executive this Officer; Mr. today Ms. website. Deputy

questions. with prepared remarks your begin take will We then and

belief regarding note based a uncertainties, forward-looking reminder. current which call represent call we new subject what include therefore, may or materially which on outside available. the and any statements, events this few information that company's on note do made forward-looking future update revise is to the statements and in results important control. from forward-looking may First, any not Today's forward-looking indicated financial statements actual company be are assumptions these available differ are, statements. currently and as Please to It to Virtu's and becomes undertake to risks, our conditions information that is may

We review description and risk refer release contained our in Form factors report our filings. the in annual other of you encourage public you XX-K disclaimers and to to press

a as these adjusted direct addition and in of of equivalent information GAAP. referred information uses to to EBITDA website, where adjusted as certain non-GAAP and our non-GAAP measures this as in margin. in as find of meaningful seen to net well measures earnings lines. importance we non-GAAP GAAP we've portion with the to measures, terms supplemental well call the Investor materials an why supplemental additional the call, as of today's EBITDA to may financial be consult These management to During on should how this listeners reconciliation including explanation income as not net you'll trading measures, GAAP refer We considered be and reported to as income, superior measures to adjusted

that, like call the to Doug. with And I'd turn over to

Douglas Cifu

morning, In I Thank XXXX for Virtu's initiatives. good you, performance morning. fourth everyone. you remarks us today, and business and this strategic joining Thank and financial Andrew, will focus quarter on my

provide Following our my on will Cindy Joe details results. additional and remarks,

and trading XXXX. Looking our the and and results, fourth of EPS income for XXXX adjusted the year Slide the XXXX of respectively. year supplemental for full the generated million of full quarter million summarized XXXX, fourth $X.XX material, which per quarter day quarter and We reported of at X are we net adjusted $X.XX the $X.X $X.XX year of for fourth full normalized on

highlights that X net an Execution Services our $X.X per increase the X% an Slide the adjusted trading business million earned segment in of per million quarter, of while income Market over of prior per day $X.X day quarter. day, our average delivered Making

the year. quarter's performance addressable X-month driven by business the Making reduction end compared opportunity, reduced to and evidenced reflects of quarter, to our stretch in of Market prior the especially volatility a This combination significant customer as by of weak particularly the spreads volumes for

capabilities past, from ever in episodic volumes an environment. softer recently in quarter better have the we any and the seen perspective trading We volatility positioned expense, periods and in XXXX structure of capital and than of opportunity fourth to are today, convert most

operating building results disciplined any environment. to uniquely before, said our to have focus expense ready leverage remains we we deliver Virtu on As management and

in opportunities so have While in far Market in we January, we market I remain in crypto remarks. XXXX very improvement products, overall as my around particularly later Making the in will early conditions address seen

within we historic to Market the performance, market business as gain share Making market of while note wholesale previously, that alone As in limited share a we've remains is our would like ranges. said

efforts environment. spread scale our We in enhance our any capture [ are benefits diversity ], through and confident greater rate global yield our to that internalization to will initiatives, with our combined thanks growth

which Our the business, liquidity asset noncustomer well in Market quarter opportunity. the Making across performed provides classes relative to globally,

growth Market expansion well, of ] Making fourth growth to which we to initiatives, all expand $XXX,XXX opposite every per these about and very remain heights reach we in In represents initiatives, perform opportunities for our new to of including the and organic XX% continue progress NT quarter. quarter, generated [ period. making XXXX. initiatives excited Our organic across growth the in the day are optimistic We our meaningful

per Execution which third Services the the about quarter, day by adjusted X% up On our fourth side, from income million was in $X.X the averaged trading net quarter.

incremental We softening for results the VES. continue the impressive and opportunity despite in general see to market

institutional remains for activity opportunity to Despite addition line and compression, as sustained environment. higher as VES general full XXXX. performed wallet challenges, the the investors adjusted in its these quarter-over-quarter well reacted slow In to as year with rate

training we as our multiyear incremental from our Asia. remit XXXX, enhancements to a tail the plans global have a authors world-class clients execution and of largest the the be in or positive the We to across States, key income fixed investments technology of To asset EMS manager one deploying work transition well Triton which in in of and execution managers towards management United expanding as a accomplish growth leveraged integration VES Valor footprint. are of winning long end, including resources materializing Virtu's this analytics, successfully outside growth equity asset system, Europe milestones,

segment grown productivity the the overall important and profitability and the monetization began within rebuild and since has technology VES we business. streamlining significantly Most

our step growth aligned we expand despite VES. And recent We in back suite products. about results. softness excited we as the market areas asset of classes adding addressable offerings are and strategic to of for long-term at by very look in for focus believe the success a opportunities and our our more growth XXXX XXXX our Taking

in focus volatility in change elections. positions tension increase spikes continued economic significant and of policy success monetary us businesses accompany the well global growth and environment, that and our enhancing core macro any typically volumes on uncertainty, Our including our for and in initiatives

We continue business. hire investments in and to make our

that exceeded was worth opportunity term. to traders, prior XXXX. expect we is in throughout our general. which XX% us opportunities and noting This to year to our briefly at to for EBITDA as you made developers current expand quant, remain the new as capacity which And as were around impressive to the In Virtu disciplined employees in and us and for declining despite team Touching multiyear to near ever as we them its capability expect, bear the means we medium XXXX, in another It options our costs address significant continue continue growth that have investment adjusted set of enabled a fruit only margins. of would year, globally. realize on XXXX the XX% to initiatives expectations increase capabilities we occupancy

third Market Market I in crypto start States. is our the a the mentioned in our call, our as the elevated a saw to into business quarter. XXXX end result which As bitcoin on surprise interest the approved to the Making in last United record of new crypto spot Making ETF of uptick no It's fourth off meaningful the at related that persisted recently we in opportunities quarter, a probably

January [ trading trades at first in trading the they proudly the ETF for participants issuers. on know, XX/X bitcoin well maker, products A.M. began a global the Virtu day. was and as all for these when XX and first the XX, X ] you market sure I'm SEC authorized on As We approved spot among live acted

opportunities. While Making ETFs it's only been have Market bitcoin spot a since approved, were [ presented the significant the few weeks ] ETFs

that noting worth the these crypto be EPS that It's [ approved. just initial ] bitcoin to yet XX market the are expects wave of first

So well spot bitcoin crypto-related as be many the the ETFs. we ETF expect as coming. will filed Issuers with have number of there application to SEC ] more list [ already novel

and Additionally, NMS opportunities options listed us optum existing of bitcoin transact I ETF on growth we retail We're ETF uptick the seeing new all ETFs full of several await may are we're bring ETF. investors, once coinciding approach significant securities, clients across opportunities suggests how benefit curious. ETF, ETF circle, launch raising retail the our what highlight the not crypto spot to about which trading optimistic organic block [ that our with ] for it general are also are all To business investors activity an bitcoin Market-making that initiatives. in interest and in

number helpful and crypto Our financing well respectable who in the well, ] raise additional Cindy, of year ETF cover activity key especially will we Capital the our expand Markets block trading mentioned, last, Joe? ETFs, to to make business corporate Virtu is [ we but increased rates as I'll our our our as as it market quarter income and use the where credit. to fixed capital. a over least, ETF, return not more about service as fourth now And including offer to to continue and to just quarter. recently, at had details Joe as business began activity a hires certainly and turn which issuers to more continue primary provide action I in products saw

Joseph Molluso

Thank you, Doug.

think to capital this of investments that's year. grow the environment On performance was X.X% and $XXX to a this are and expenses. expenses, Just with ahead million, the business. ended We year the and briefly turning last cash we in expense making we operating is given solid

manage that headcount is range. compensation of at Consistent Virtu's compensation have and profitability at recruiting expenses, ratio end XXXX. we cash levels flat. outcome will overall headcount retaining on achieved Our with historical on discretionary in relatively are compensation believe and prudently for This by and talent. world-class history, particularly We is while best-in-class, keeping maintaining drive to while XX% this the hiring our compensation aggressive we being upper

up with were slightly line expectations. expenses non-compensation our in Other

going market were price building communications infrastructure increases in in for businesses up data. and processing, to X% data on and in XXXX So investment out new we

fees. adjustments expenses were of due bit a year in prior in other little bit a favorable increase the professional FX Our XXXX to and up

from see On as appear. billion long-term to possess as from very this side, supplement on a Meaning, remain resources can opportunities upside adequate remained debt trade increased in well from the and Slide billion management revenue to as when the $X.X and of standpoint. XX, necessary capital we that year. within and you trading our on capital capitalized liquidity range We $X they volatility has for well a a capitalize volumes capital standpoint

crypto liquidity. in material a XX ETF enter public were believe despite the our anticipate not do that changes the results dividend long years which quite We term. past able to quo, because base X market including sustainable we been long has we efficiency the now and the early maintain fact, and steadily term capital as our to increase operational over our without XXXX we our annual buyback variable the of for paid overall dividend, it to overall our We for have years, over In is program. X continued status available

In for X.X addition, we repurchased quarter million approximately $XX in fourth the shares million.

And to Our period-end down X-plus we shares. of is net count of XX.X% program. repurchased XXX.X share the our at our have point, in this new company now beginning issuances, years million

review will to we to briefly up And Cindy it with questions. the to that, financial your turn details call I over the before open

Cindy Lee

Joe. performance. our quarterly materials, you, everyone. On Thank X a our we Slide supplemental of of Good combine morning, summary

million For trading adjusted adjusted quarter income our million Market expenses, was our adjusted day. trading net Making per net direct $X.X totaled XXXX, or $XX of net day. or trading day million million per Execution $XXX net the million per $XXX which was trend Services gain or million $X.X income $X.X income ENT, fourth or of trading represents

EBITDA for EBITDA XXXX of the $XX XXXX fourth adjusted margin fourth and Our Adjusted was was normalized quarter adjusted was $X.XX. EPS our quarter XX%. million

provide our summary we of X, a operating expenses Slide On results.

recorded million we expenses. operating adjusted the For XXXX, $XXX quarter of fourth

committed to us the continue structure expense We so has to efficient per combined We environment. to an demonstrates to our return with control $X.XX operating maintain continued share dividend which inflationary expenses and quarter our repurchase program shareholders. remain supply our helped our to and our commitment and cost publishment during capital

operator like for the the over the would call Q&A. Now turn to to I

Operator

today Our first Worthington question JPMorgan. of Instructions] from for Ken [Operator comes

Kenneth Worthington

the off the with kick more cryptocurrency questions guess around call I to I wanted opportunity.

ETFs. rebounded the market time, in first, XQ a significantly, has role has at So with rebounded, at Bitcoin the the expanded more XQ the AP cryptocurrency same bit on

do market maker market market in being with Bitcoin how change you're economics the number a of Virtu and as a well miners. the started and spot activities for expands? companies and in AP same ETFs And crypto you So the on crypto as the So maker both now ETS. in like the crypto as participate maker

bigger So near punch does one today the block And initiatives is crypto in term. growth and the how for in make more Virtu income versus other fixed ultimate options, guess ETF line your is in like position the area broadly? other much I here opportunity crypto profitable. the areas revenue

Douglas Cifu

the form meaningful you. have because about Virtu give being seen you, Thank to is first forced a of answer X thanks type kind asking it this It's for daily And a these moment States. been a of question. in mean the Yes. crypto nail the class, too if of has a for this Virtu class to product great I a for -- the market. perfect message asset I I changes of credit, P&L United storm, of in combines regard around we've a a the multi-asset large transformational class. of don't want skills lot you for but really great asset you've where will, results in from bit hit regardless And dramatic, in the head. certainly. asset be think of and on and class to regulatory become this X-figure some really years, multi-geographic It a already we're I'll of And our generating quarter perfect you you the with

by the been, and have you are somebody all of to mean with volume great from deploying the you the ETFs noted, price as other of creating products, we and transformation, all the making that over scale that spot et know, means but risk I and maker historically, cetera, -- in in what and will, if that So ETF transfer. transactions take bitcoin, that to regard XX is and throwing market you moving to needs people future the

And an the creation we of regard us. cash so the maker, a because significant ETF, for redemption that with are spot opportunity bitcoin as Market AP only acting provides act know, pulling directly in Making as market we But can are obligations provide a trust. not you and to dealer, but their if issuers as also one point satisfy affiliates our you need through a can they we the have of will, to the to extent the Singapore where in to their we to

kinds a at be So have have authorized in Ken, be, very our the here I we're you are. negative we're the have of in we on is to products, And think clients there's I'm excited, marketplace because as means. and kind one really out going participant, and large clients name we're acting to institutions going asset there's well, a early saying the long be gearing names, clients there's prepared allow an and it. they be forefront going manifestations to people's [indiscernible] the to then of There's who you're right? also as of other remarks, of my around and We're confusion different are leveraged like for other short figure interest know ETFs. that what mentioned this in other in you securities. we very going to all who CEO innings not actually marketplace because of you and class of but going you And you where the things. some saying, And going to hand, all there's to have trade other then as the then our can work where But not kinds to

I the a need what United think circle, is full To it regulatory framework coherent in bring we really States.

have to global happens, system that have to been spot. SEC that provide you We their have get a the because we able will regularized not legislative where platforms act access that current together. have had Once and this body not

go like and going that custody, deploying lot around one [ others. look an whatnot. international Schwab, to you'll Fidelity and of then you'll analytics, the started hidden that Citadel ], clearing world, and recently world And road exchange, you'll it's you'll feel brokers, have has and platforms have and prime futures have with will awful have and like announced it great have the You'll a you and which EEX we ETFs now the basis

into And of very, across multi-asset regularized large model you class class, firm. will, so if a asset order well you'll being have very market-making our fits that this and

institutionalized very, very in we'll about opportunity to grow we ago for and of we're in prepared are scope where the you asset to and the see in very more just continue terms institutional the time. excited flow it. more regularized addressable into think I'm market, more years excited moment we this So money made the couple of And that class very, we again, I of a investments did as be the becomes

been firm. couple your very first I the exciting of have that the So hope weeks but answers question, within

Operator

Our of Sandler. Piper Patrick next Moley question comes from

Patrick Moley

this between we that think the fourth in show a was results. and reports, in what I looked at the think the lowest that showed if disconnect quarter, volatility the quarter, in there at been a was So it had I in quarter the least metrics fourth volume obviously the But while. industry your XXX opportunity did

comments we the is, opportunity your tracking guess guess So you opportunity. as question analysts here better But do my crypto how the can I quarter-to-quarter? think and of investors I on just appreciate overall do I job a today, sit

Douglas Cifu

various have metrics. XXX a great and continued years, it's a for XXX obviously, the It's and and business. look X best reports you to I way to mean the to Yes. challenge is it the to really last parts try all to investors really of frustrate explain And the do our the question. we at

the footnote, request. forefront actually As we a of been submitted on we a have for, asking

granular what review for was this it update ] equities and ago permit like reports reporting XXX look track modernize granular what period. [ the will, of years to if SEC think during was of to understanding and X the type But I market. exactly the exactly our within quoted and if we of at you spread you see the U.S. to segment, XXX

was that in meaningful see You'll contraction there spread. COVID

will, that to you the the opportunity to COVID spread can orders you Virtu for it Financial. we if by XXX wholesalers. it have collect And were look effectively look and broker, is can at you that by come maximum theoretical, offer through at

there So during the meaningful was contraction. quarter,

to the quarter's as business overall by be expectation. really line volumes not are this my our Making Market and Services, I business clear remarks, business. Execution made tends Making and certainly customer noncustomer with volatility. very your performance certainly during virtual attributable The less in and it predictable So of and with quarter. Market results, to the always yin correlated metrics It outperformed is performed That the that in and yang that marketplace

was a those mid The to that distort other in lot over on on to anecdotally. opportunities. I see look comment for XX% soft-dollar increase X market marketplace within TCV, tend more toxic be volumes. at they're trading is stock quarter, in tends just that I roughly particular a that December, a and sub did a name The stocks level dramatically the quarter, it was traded ] less And spread think That you to was it this billion tend will more smaller be they [ overall a granular is dollar make if the significant you day, example. the way in shares, Clearly, there about trained. in

a SEC about companies, talked the those footnote, and lot to public FINRA of in We've view, our shouldn't be it. a listed companies. As

companies a better should companies job of some be be trading listed TC. could those and Nasdaq I shouldn't policing of think public frankly, do in Frankly, that

to what the on. So down when our in it time but words. COVID does excuses distorts as trying the business, using receive back the those that a as expressed really to I come opportunity we little would granularity, spread marketplace moment at not some that do that, of more XXX think within provide I'm

way you And guys slice so and kind a good that's it. of probably for dice to

perform I is should what January SEC in think XXX of plus. thus spread it the over the will that get for going up it's out better happens, and comes first XX% be XXX when the far from which worth proposal the

and that, I is of some as in the of some remarks, And mentioned I the bitcoin to, excitement ETFs. enthusiasm think, prepared around correlated my

give I you clarity look all So enough in wrangling answer, I around at the you future. what hope

Operator

for Our today Citi. Chris question from next Allen comes of

Christopher Allen

sequentially. better think to surprised you XQ stronger decline wanted growth organic index options, on I A dig was after in capital in Crypto decent XQ see little a markets sequential as to in And was initiatives. the noted much activity quarter. the had fourth activities XQ you the I a to a activity little relative bit up well.

us moving give terms allow capital of seeing some crypto and you're So seeing maybe different markets options obviously, in maybe you -- tails could for where in activity just I the here? parts just from mean, you're and color

Douglas Cifu

with fourth major with Very which as are track the quarter. the think Yes. we XX contributed, the regard in the with the was The Market internal And Yes. in of ETF certainly The that answer declined options explosion I in obviously, crypto, haven't particularly fourth opportunity January and during significantly spread like our regard, launch ETF which I metrics the options to of block, the is in per quarter. Making [indiscernible] components terms and mentioned, but bitcoin the obviously, it Without initiative. to which contract quarter, this of short as fair major of growth we and question. were were seen, the seen we've was

the really we of all [ decline. the in these of of in terms explains ETF performance metrics. as quarter. the And Internally, were remarks, the lot you're very, that block very a I so seeing option happy the ] what And prepared and desk with my of said we track sequential during

markets, Indian One we there. of grow we to Asia, and an market was highlights opportunity Japanese there's profitable into and both our options the in where only actively now and the are the maker of as an think expansion year the

the continues index will. what value, get in to same addressable market around our But around forces, and roll continue to dollar contracts volatility growth I quoting our of organic much those as grow again, to business, options of which more it and products the your asset just, share volumes, terms regard with if in if initiatives market other be we share the all spread are It's to classes. effectively for frustration, you So absolute importantly, the subject the options competitive. you was

Operator

next for at Fannon of comes from today Jefferies. question Our Dan

Daniel Fannon

of leverage model. the My question and kind expenses in is on

dollar about I as year. comp were think, Joe, down. managing out the you've then to for if the the and dollar starting year, amount with the the ratio? progressed, talked I comp year full at modestly when And revenues up ratio is a to to then amount full a look And

And so I just cash want to outlook understand, the a better. but I for of get think this broadly. kind kind going We any year can about forward for in floor we floor and see an more think environment, as is expenses is this just don't revenues just of compensation next also if

Joseph Molluso

Yes. are of Sure, say, people when call here back it's XX% our talent, Joe. go of employee like don't in Doug's it of based the remarks not we I who around for, I the kind if the ITG. terms know terms overhaul I'd today acquired here of something of Dan, to I upgrading were in

the in don't outcome. significant XXX XX% happy overall from in ] We So we've that the on at of asked a I always going investment. I this think comp been are you we're upgrading and investing in what mean if for terms And [ about growth worry of initiatives. upgrade you basis. is cash year with XXX look in, being talent, a our investing XXXX like to we're and a ratio with

in over I are long that out -- religion think high talent years. a recruiting than few term, than there's to the higher it past of the months what means it in came hired. too that. the that's So too will to much available get environment wouldn't It's over we it much it year about better past around been but X where has be expect the happy terms a no I

Daniel Fannon

other thinking Prospectively, about just the expenses?

Joseph Molluso

data But some media, had do. we've on expense communications we've other and had sure. processing, that again, build-outs the to Yes,

on increases decreases expense data market there. price we're low up. to guided cost right and think I I've experienced fixed have infrastructure We ended always mid-single-digit

Again, when -- data think market processing, we again, actively you to ] with So [ global in realized manage really subject make. and are about deploy the that I we're the and investments communications We we on that data outcome. pleased we and think to. infrastructure need this plant the increases price we

foreign data, we operations favorable prune was terms low especially non-U.S. think exchange adjustments terms in terms we and we administrative stuff, So I where in have pound sure manage of we make actively the in because euro market And to of in can. sterling then expenses our XXXX of subsidiary. some

think I us in ] run reverted XXXX. going that to and [ kind for rate number that forward would process of I expect So the be on But admin.

Operator

Alex from Goldman comes question of next Our Blostein Sachs.

Alexander Blostein

to I quarter wanted bit had dig continues I I swap. with looks debt costs the just have a for similar But a this question up creep like guess, structure to quarter, on into think. little the bit, it also capital and debt-to-EBITDA the to the a last new and it's little you I function, obviously, challenges increased some the EBITDA But front. the

higher and you P&L a, down that. I the thoughts and the buybacks? impact forward, think going uses what is confirm of just as But flow, interest maybe So about versus paying deleveraging kind that are from through of on cash guess, expense talk the about if debt also

Joseph Molluso

was enormous some it benefit out those take right? to pull was very attractive That we did was ago. put in swap unwind going a Virtu, an not forward that order, built-in the to All the years did in accretive, swap on few kind a standpoint, will to put gain instrument just will new several that had of GAAP months. and that of P&L in a from we be Dan, do was accretive. So that that Yes. be P&L a we from standpoint, we

little by À interest close then outstanding we is bit is reduce able forward. is underlying and that were the cap rate we the use did the kind and a have right? deal, also loan of cash debt So kind going expense go was we do we what to and So an that anyway, that debt to just of to . our pulled accretive interest reduce going expense instrument so instrument to up -- The run forward

a with the the we years. in environment, to that easing expect on back, reduce couple We coming of have market next we will loan expect that over opportunity and Fed cost

We spread really to a being in price take way we're anticipate we that. some with So happy as and this Fed anticipate that easing we the well. able

able run a So to debt. monetize little to we were like bit able We're going tribute be it looks higher anyway. happen reduce going yes, rate the and that swap it's the kind was to of to to

], we XX.XX we're very the comfortable So deal and happy did. [ with we're with the

Alexander Blostein

you. Got

paydown the in change loan the trajectory? terms kind of versus of no same of So buybacks

Joseph Molluso

that's right. monetization different felt trade income, should it flow of We with of as almost we've was No, do net every right. levels expect that that trading you That's here bit the terms here so we appropriate. quarter, little got to we cash of generate a sharp We in at that But continue. swap. the

Operator

of Michael comes Our from question next Stanley. Morgan Cyprys

Michael Cyprys

was versus, and initiatives. maybe become of ETFs. about Maybe taking today? you the much hoping would that presence your today? Making of markets you're Maybe say, and could fixed for in credit meaningful corporate us over talk size you more sort that income time elaborate that in some I participation you income fixed could to Market steps your on treasuries How fixed income update how contributing

Douglas Cifu

is make similar great be options. would experienced The to what hope, is Yes, analogy in I I question. trajectory, the we going to

order distribution around with categories. to developed Trumid. market Vendors, the an done of cetera, et as said the access, Bloomberg, lot various us on sales [indiscernible] have and I rent we've it integration We've call ongoing prior quote just loosely, traded we efforts you a extensively, and technology to So in calls, ability have flat give groundwork internal

priorities spent a process hire developing of where see year an and in growth in index the add way where we on able able and of folks big to We to thing or we I'll technology. the infrastructure an options I internal value went think where We're option like as X use be people. of to the that kind Virtu did the doing outside. in family. the being we see the We and same terms I

treasuries, regard looks can rates, with feels cetera. and to and clearing ] cross okay, what we The and and the online come myself, done add particularly what which I has in more the already is and SEC see If margining centralized at we treasury what futures like interest Virtu look significant is do. between say going with enter to [ the I marketplace, et obvious value, of XXXX, in to where

so like electronification of a general. further And fixed that Virtu income plus will look more and business, in the style CUSIPs certainly, the

and we'll we So on emphasis actively that think more mostly products continue creation very credit same and debt. at and nicely we're focused to need into rates investment-grade quoting do the tie we we going our custom while have to redemptions whatnot that I desk to are the fixed on on where income business, initially, categories time, to that put ETF our

we've of contribution, very stage So that the point. always see terms de this the enthused to leverage in particularly seen lot that access. provides am, that about early a minimis develop centralized structure with as and origin of and market business very, off. being we'll I or of issues at I'm firms same to willing way, clearing awareness prime the in of regard But again considerations more in with deal take rates optimistic, brokers some

more to become by the that's nontraditional marketplace a the if you and and [ the much think significant going the providers traders the big just Citadels like domination, I market ] dealers, we'll where hopefully and can garner James share. treats to So flow us weigh will, competitive continue liquidity

contribution de a and we're meaningful investment focused So that very certainly not given the growth firm, really be the but an for the the size the it Michael. mix of XXXX is it's of competitive will market on, of meaningful, of rest in minimis in initiative again, it's kind probably XXXX, us

for question. thank you So the

Operator

Siegenthaler of We question Craig another have of Bank from America.

Douglas Cifu

Operator, maybe he dropped off.

Operator

[Operator apologies. Instructions] My

Douglas Cifu

day. Well, speaking Okay. a we follow have great after in you want with for forward some questions. no and the it today, with you, up you or sounds thank to do have point me, a Joe Have mid-April. Obviously, if Andrew like call. everybody. Craig, to we you I in everybody us Thank joining look question further

Operator

you joining for call. Thank today's

your now may You disconnect lines.

Virtu Financial (VIRT) 25 Jan 242023 Q4 Earnings call transcript