VIRT - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Virtu Financial 2024 Fourth Quarter Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the call over to Andrew. Please go ahead.

Difficulty] [Technical

Andrew Smith

you. Thank

Officer; results and on quarter questions. morning's this and prepared Joseph then Chief morning we Financial and our Our and remarks Operating Officer; website. were Officer. We'll With available Mr. Executive our Cifu, our Mr. our this your Cindy us are Lee, have Chief Co-President fourth Molluso, Douglas released Ms. Co-Chief today take call, with on begin

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

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

EBITDA reported today's supplemental adjusted financial in to as measures, and refer to not considered adjusted including non-GAAP as During call, margin. should adjusted GAAP and GAAP. non-GAAP be income, addition EBITDA accordance may to as adjusted income, measures certain in measures, we net net measures to trading with superior These

this as reconciliation with the to how terms information additional be these as the to management as call website, consult of where uses deem We this non-GAAP meaningful information an why of in find a portion measures well measures. on to to our we of material direct listeners as referred well explanation earnings supplemental the Investor equivalent you'll

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

Douglas Cifu

the morning, Apologies Good Thank you, everyone. for delay. Andrew.

on not but and you performance sure this XXXX service, my joining the us In with in fourth check morning. and for focus Thank financial what will We Virtu's we'll quarter happened. initiatives. today, strategic business remarks

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

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

making quarter, and to in the both in strong we We mixed Virtu to to opportunity quarter. further still the technology capabilities customer these and delivered performance improvements making noncustomer enhancements performance In a our in fourth Execution our business the committed there another our market and make, businesses Service remain our improve investments and significant on and are environment, every further touch we'll moment. in in against

day, increases respectively, operating we Slide net per and that X per XXXX, innovative to benefits and offerings. operations unique new continually needs our global in to with saw In quarter. the increase allow multi-asset that firsthand of us our further scaled invest our clients' and the platform meet per leverage quarter Services an of of our adjusted million Market XX% in day of while average delivered $X.X day, Execution the segment earned trading over Making $X.X income highlights million XX%

market increased On the consecutive revenue quarter best deep VES day of seen product first resulted NT integration the see quarter's This clients' the for segment. This since was leading with quarter our improved you've algo in represents $X.X very of product adopt per to institutions the set, Services broad million first of VES' consistency has achieving fifth the side, competitive trading 'XX since results We and to XXXX. our past quarter quarter. with Execution continue best of this VES's quarter despite workflows. a

technology and and team growth earnings incremental length VES both call. leveraged from clients. to solutions have expands as are new at with within asset long-term equity remits key for this growth clients Europe VES asset our [ beginning deployed outside execution materialize Triton analytics, These the ] which successfully plans business end, efforts our on Asia. for our enhancements income We and management existing investments and a XXXX, To system last manager Virtu managers in footprint of execution [ our for we X of adoption United discussed to new EMS, generate States, Triton algos our by largest Valor the include and accomplish milestones trading POSIT global Valor Alert winning world-class fixed our in ] in

and in our expansion we Most we our has compounding business importantly, business. the operating growth since productivity segment profitability streamlining and grown leverage opportunities, within very about VES to say, of remain XXXX. modernization overall technology rebuild the of began and benefits increasing VES Needless significantly excited and that

Now on the to and customer noncustomer that in strong opportunity But there's improve. in Making relative the businesses even well Both performed quarter to Making. Market set. a this, like room Market to know our quarter we

results board. lower so has better November but every same result conditions October, Market far Making an XX% quarter, up were since. opportunity the opportunity improved in across Our or impressive and considering markedly The realized fourth was in the been volatility month almost down in the the was

per Further, the of show XXX XX%, increase quoted versus and reports the respectively, quarter an spread and quarter. XX% executed fourth third for our shares

continuous internalization market well outperform factors, including enhancements function initiatives Our to many and ability the of of development is a iteration. and as success growth strategy metrics as our

Market saw models exist XXXX. redesigned our For results in and to meaningful we in that contributions Making new not did from XXXX, example,

combined with efforts confident smarter increased our through environment. that spread enhance will growth any initiatives, are rates in our benefits We capture to yield internalization

from the day growth meaningful our We initiatives, since XX% NT into to and highest Making organic X initiatives have year on throughout XXXX, full year. and organic block organic growth $XXX,XXX per and our expansion firm-wide fourth income progress any we NT. in Touching or quarter for expand per the Market this reporting continue for years ETF growth well began fixed represented XXXX, options NT crypto, and including X In the generated ago. year to day perform made the from

crypto quarter, despite the they delivering well strong growth in spot when Our performed volumes fourth XX% ETFs the to results initiatives launched. almost compared in market quarter very down of crypto were first being first

we and liquidity our year. improving tapered in market our the capabilities strong driven our the market enhanced this second results and by quarters became ETFs were efficiency. expanding third investments off Our crypto made efficient, around operational After excitement crypto we more by the distribution access and and

and set invest crypto enabling quarter. pay us in scaled the to to our capture second building opportunity that third dividends really returns generate decision significant Our sizable in and muted the by capabilities, us quarters a up was to presented fourth relatively in

expanding crypto demand. growing meet our global done to institutional footprint aren't We

early our markets the build risk XX/X and are crypto-native to making market management building capital-efficient continue and framework in We capabilities. of to connectivity to enhance offering days our and reputable out our

capital Importantly, our despite growing to remain and committed crypto risk efficiency. footprint, we management

expand market products are to the which market addressable We kick assets in a and of our will core further in digital new and regulatory XXXX for that of will new crypto We plays and the our making the off which strengths. opportunity tailwinds believe execution more wave broadly. excited growing services,

despite recent activity full broadening liquidity to at so results look ETF our This delivered across come. work the the year greater XXXX results, offering continue existing block onboarding clients. our by our client clients we as strong step Taking addition, and more new to distribution. In fourth believe I disciplined is we in more grow quarter saw and a both and there back, I performance, much sizable

we addressable and greater by to and more market focus growth of areas our asset offerings us Our as success suite expand for our strategic execution market-making service and classes even solutions. of adding capabilities align long-term

initiatives and enhancing for elections. significant the that the Our reduced us well success continued whether global environment, positions growth it in focus accompany increasing changes volatility monetary on tensions in of volatility uncertainty, typically in volumes be or our policy businesses economic macro or any our spikes and core

in and make to business. We continue our hire investments

it significant in continue that that employees. great is only our were current prior investments at of quants Virtu of new example, make other traders, developers, For we employees, to them means This and worth to multiyear noting XX% XXXX.

since Notably, XX% support of were we hires from expect ever to disciplined our come our margin you've enabled XXXX. as about a around which new in to Virtu, the as XXXX to And year, organic XX% adjusted EBITDA realize throughout growth remain initiatives. costs us

the turn over Cindy our will call Lee, Now CFO. Ms. to I Cindy?

Cindy Lee

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

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

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

our expense results. On Slide X, operating a provided we summary of

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

which Financing interest to fourth helped our structure inflationary of us an disciplined during the continue quarter environment. expense control million management to expense XXXX. $XX maintain operating and has efficient expenses We cost the for was

for contracts that our the refinance rate blended rate in With our approximately swap X.X% in of interest years, our long-term aggregate. debt the recent was benefit and interest we prior entered

ranges a XX In an was of date, price used total repurchase initiated on flow total $X.X Since million fit target issuance. shares the of net XXX.X our almost share a cash fully new have shares shares buybacks of diluted for count repurchase million. XX.X% we our for million share program, of per X.X per at of publicly. share to a our outstanding, at have billion. we $XX.X average we we shares have an set $XX.XX repurchased price within after repurchased million To average QX, bringing portion over the we of share free to of $XX.XX Quarter-end Virtu forth

year-to-date guidelines Our published. is we the have within share program repurchase

per dividend. our continued shareholders. our to commitment program to capital our We to $X.XX remain committed repurchase our combined with quarter And demonstrates return share

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

Operator

And our Instructions] [Operator Sandler. from of come first Patrick will Patrick. Piper Moley question

Patrick Moley

Good.

the but the environment. don't a coming regulatory new Head on Doug, on know is My of just question the quarter. congrats SEC heard, have Obviously, So if in. you we I

then talk of And So can mean like means presented market your that and that those the overall business? means addressable that there . total for opportunities what opportunities? are you're what could about in, the for the that areas maybe it just just what for you

Douglas Cifu

Year's name [ of One to mention not Gary resolutions my again. Gantes ] New was

the Patrick, changing and -- had will Look, effectively the last about having X a I'll politically be it you, to So had may mean, that polite I the the bear I entire years, head And that trading industry say right the be a with a him. in of me markets motivated you share we're time mean, obviously, away. really was a anything and for thank it violate was guard was burden last thrilled that that I Washington. of in puppet. a for say

were that markets not so proposals And make [indiscernible] were to the better. they getting intended

beating recognize better so or that worse, do. a in and going to a I of lot behind think, of a lot I for industry back, took that this people of harm And were we lot successfully, within give to and the they a leading very credit the rallied role

has person. [ [ payment order Obviously, ] structure and Atkins an The [ thoughtful Mary that experienced, market is are men his views news contrary band ] for flow. that good he of ] Paul I to around and think is Gansler wholesaling unbelievably

items of So off table. the those be will all

person terms digital whether come And and banks -- there's been in tailwinds around head accounting staff the has than enforcement. was that regulations in a the predict exactly authority it I than favorable appointed mentioned which the of the digital and around have already the chair going overturned assets. very will happen Hester know having bulletin I sensible obviously you regulation a think thing ] to the assets. it [indiscernible] what's I a it's smart Perth ] the she's SEC, [ of the difficult will is Gansler around But CFTC crypto more where had solution pushed the on [ exciting custodying by SEC mean of and through very subcommittee SEC. that's bipartisan to script rather most interim of XXX, to that going be out

And So very, Atkins particular, we're that. wanting about at Reg water very protection to has history a excited NMS, look rule. of the in

sensible equity market that, be stocks that dollar that made and sense there'd of obviously, industry. be And real comprehensive review around suggested think will that And sub things I So marketplace. I in -- involve think that lot structure. makes we've there'll XXXX, be like he in of we don't proposals a the a will think like the

so that with we'll we're presented frankly, solutions. folks have ever the Washington And the That's that excited and political prior willing We're are we're data-driven when of their we to to because in sensible regime, asked solutions. of for. going industry And all the ignored engage that look data just are motivations. it data-driven that at

So it's about Washington. in new excited a day very, very We're it.

I the get and -- proponent new of Chair ] know I clarity crypto. of think Congressman Hill [ he's clarity is Financial we'll the French Committee. Services a around bipartisan around clarity House

so excited assets ] about that the important asset leader a class. well United Tim growing bipartisan [ senetor Scott of States and be all around again very, innovation very Senor can as the solution ] and [ digital think a very Lumis I in are

Patrick Moley

That's and we help going could it's you great by stability you you've those some are If overlapping think and just color. level earnings several XXXX, be this look that maintain of then as we But in about Could were addressed comments, that stable. stable back it's the And maybe to you volumes what we calls. drove your whether Great. can follow-up. talk as what last things maybe just driven a as into your could a you talk had remain years, it that understand been? surprisingly over XXXX, stability but it of volatility, lot head

Douglas Cifu

Yes, question. that's a great

an I really firm, making businesses. a obviously, both order making internalizing diverse single noncustomer And prided value and we significant provide market ourselves customer in to Execution scaled also We've can our very firm, we've within that's the a think, that market Services indeed, retail clients. we act organization. say cohesive people. being added flow, investments our but word And internalization look, the can't in business, I made so our I as mean enough.

initiatives and to We've I what consistency think and have brought we're the and doing. use helps. -- ETF really that growth stability block. more So added, obviously, your word around more options

fourth had I as nice crypto really quarter. And mentioned, a

be side, offer So try classes again, services on great it's to many was scale Virtu the as geographies possibly try can, the to agnostic value be asset you proposition, in be and which the to efficient best the to market and markets, that and the the multiple making scaled, products bid best value and understand clients products execution in multi-asset the provide really proposition. as

you And XX.X% this that helps have X going And to company. have so to we our with of Hopefully, started more and we years in regulatory we're ebbing. ago, we're have EPS. of tailwind, our administration than part more obviously, change bought was And and program, something? buyback in flows. back about Washington we to obviously, add ebbs, which that Joe, slowing we're confident. this obviously, our going grow And want

Joseph Molluso

proving here think to prove to And but fourth think I think execution I there. that think volatile case -- -- outstanding even say Making to to has it quarter, consistent a you volatile, an original services case. going is I getting segment. hopefully, to going us to the execution permanently, I be that's Market just years year hesitate having -- but and was bar that's raised of been was the it several the while touched later, I'm less are thesis having the into more services be I going No, think on we will forward. say I it, the slightly than be And

Operator

Citi. Our Allen next Chris of coming will be question from

Christopher Allen

opportunity by you was And wanted strong driven was you the over on course earlier in the noted but think environment Making us Market maybe help the about segment. internalization on versus if the in quarter. in bit just quarter. think little a the nice of could dig Very mixed quarter. the What I environment? performance a an fourth there call, improving set, to the

in trying retail seem of positive kind XXXX, when the assessment? the terms signals be all we would and agree of start as trading volatility, to you all with So that in the then activity between to pointing direction delineate realized X

Douglas Cifu

it's think -- I great look, a question. Yes,

of and maker. this, spread. volumes like the when opportunity think think Those market the the then of are I Virtu, always bid market you like measurement best always offer said for what's we've

that there. can certainly, in Some of positive a mentioned you and quoted trend XXX look it the in in reports Chris, I seen around the and script, we've spread,

Think We that's crypto, in retail taking a internalization. it's or the ETF had business that's terrific area quarter big through a crypto, really quarter RFQ we nice business. where positions, transition large from -- it's benefits had quite an plan, whether And So we our your block in desk a a very pension just or RIA well. about that our right? did really highlighted standard a down regime from

provide attractive pricing that's able your really without effectively internalization hedge really marketplace world is. the broadcasting and competitive exposure hinges The what ability that greater to on in to to highly being a

proud people to enable liquidity the that So and very, set and a able commodities better set, around in us, in provide product functionally frankly, fixed area Europe. the We're I'm very lot of that worked really have in to equities, United offer a now wider States and a very both hard to of income. firm product much

the as or choice and have car we Rolls-Royce way, one we that they down now. of and tires whatever it your those of change Mercedes We BMW, I'll Cavoli the put thing of proud And is, our bought have what couple a bucks, then don't crew the highlight and the Execution there. on Steve [ Services last of ] sleep is, let's Really were highway driving business. done

that's more is in proof of efficient. We the the global have pudding. heck a a business lot And got a great scaled

we prime. better IPO have but grow have And don't performance. don't also to Triton competitive that we have don't perform industry analytics. it's standard. products we our market And able As I research, We suite, is advantage we've that's clear Algo why people in and or tell our calendar, it because the share, only than particularly at have very been

very are lot all every XXXX. because that in add I quarter seen of time a or business but bite up XXXX. to to kind talk me your I you current the those led thesis, if hard So we've those the not and Chris, trading of things, quarter it nice trends back tried come so to plan, in And it that's of a about been argue in to do days with the is it's right, XX continuing hard

Christopher Allen

And just crypto. a follow-up on

that your noted some middle investments made you've early you're building but the of out are framework. in days in You still XX/X crypto year the 'XX, in

So some good of give if be investments that could crypto to maybe you you intent us the prepared be build what forward? on any to environment do for can and maybe need made a moving color kind framework for what color fully you to

Douglas Cifu

I in think business, think question. ETF now Yes. a got it's and you of mean you got it's right some ways, futures, a that's wheelhouse, I mean right? right? of got great commodities. of kind FX, in it's ways, Virtu-style You've And traditional many spot, different. But

You say that. and nice I'll have venues. be nontraditional

Some of questionable. them are regulatorily

capital not got So efficiencies to avoid there. those. you The are

clearing. You have don't centralized

reputational Gensler largely for ] Bulletin [ Zar to didn't have you traditional don't help, cash creation and You of also Staff in-kind redemptions. So and wouldn't in creation redemption, prime allow because ETF then world, XXX the had Accounting -- right? brokerage do issues

a operationally, cash that in efficient more it market hassle be to meant lot ETF a the products. was of that So Bitcoin maker an

XX/X that. staff at So time, to our right? money and a lot of CME X:XX up Schwab for maker open a Saturdays We XX/X that's demands it's off, we with for that's what changed, first and and demands we piece out in Pantera, execution. great right, best pricing, So industry Sundays machines we're venue marketplace a it. our lot the they demand at and in our there and provider, us, typically, the time started spent Eastern a and of the but and and own of big Sequoia market And was the EDX Obviously, whenever p.m. at right? So now Fidelity the would investing we're solution because addition, friends Citadel a and on XX/X and

scale meaningful took you to do believe. on and the to of to that that wealth the these products, all lot we latter, of be will, We institutional build going on, we to believe what continue products, a institutions, up work distribution. to migrated time, adoption divisions so it's they're if and they've these significant go firmly there'll And continue of a

other pricing our to capabilities, it's like need attractive able a provide be institutions. multitude of block coins insight or in to to So ETF whether FX, X-sided distribution we

And VFX, just like so you'll income, et see VF fixed a got VF we've have crypto, cetera. we

where directly So we be institutional end offering an it to will stream prices users.

Virtu, complexities more frankly, lot and Virtu managed complexity lot regulatory and classic people, just because institutional a but uncertainties. a but operations legacy by hassle, the again, run operational So long-term more lot with and traders a of of some of

Operator

coming Ken next Worthington question be JPMorgan. of Our from will

Kenneth Worthington

betting one interested currently is today. First, is -- bit here? see need but the of be to betting for on bedding via to that the would sorry, was contracts you And And Virtu I financial established Virtu for is to listed be Virtu really than potential markets? market. different the know participate a takeaways big markets viable from listed in a how that or election in do they

Douglas Cifu

enough a make makes are a there's to market a get Ken, every hurricanes. be NHL, what in. example, of lost the our with opportunity. to have terms -- NHL Carolina our in for that careful know our it's mean, lose win would last something that that I against look ranges of putting whether night, or I I venues the going maker and at We are the point, and here's we involvement. to say right? Look, obviously. where competitors involved say. because products Like They are. market great little this to I not we Yes. sense that's But there a -- I Obviously, involvement aside, index some there for are volume your of think little like at look look the we of in involved Then it competitors already what credible difficult

at. is had you If We're broader markets. excited new look indices, about always we something would it definitely

If what asked if right? on market focus BLT, we I there. like years about have just X in to significant needs you where do. from underlying we'll be pricing, viable ago the is Like a it's don't But it a enough widget wouldn't or with products. Bitcoin, that a noted had me I not know X-sided people volume somebody trade

people doing futures so like like DCMs that, kind in And having we what are wheelhouse. terms that's of coming and right things up our and of like in with products

It's even some to something of are to that's can evolve will pronounce like point, trying [ these I I had think, to of Calcin ] the that mildly and us. to that certainly entities. didn't attractive like, retail put I in So other because market meaningful DCM names. the venues that it much that's forgot products, interest. it Nadex very, something to I has these manner some launch it's very and your

Kenneth Worthington

had clearly, of gauge the then on the quarter? Historically, this you election a the of to big around Can disproportional great impact the profit And us help And the quarter. you Perfect. magnitude days election? generated events. around sort the results you were opportunity how Virtu had has

Douglas Cifu

been XXX I or to this I said November, mean, released and December was in It's spread reports quoted than And Yes. going I'll in a has obviously, I be the script, released. quoted the question. in it spread way. is October and it meaningfully the answer think great smaller

November, And dissipated. wasn't this it's so it hasn't a like really whatever on day figure since X right? X, it crazy like election And we been outside, But was buildup day. have whatever then,

it's I pretty So question that? sustainable sustainable. is how is, think

in -- age again more think going thing. not quote the the But keen putten and the I or confidence there's I'm golden that interest do exuberance in sites, there's to that I other market. new the think this, I think a market of

I participation enthusiasm -- Congress control a the I maybe just and in here while. States again, see a the going the a having both that days couple Republicans to mean, $XX in something had frankly, things houses in there's in notional in markets get United I that growing that and done. And Europe. billion Asia, was are and which seen hadn't of think means of we then Europe we

do more think that be innovation, lot new to And a going products. I there's of

crypto are a new can't lost coins these and swing issuers hitting like a around and dead are days of products crypto frankly new how that. I cat leverage putting many out track products new product, without You a ETF. things

So a all market-making -- is interest if cornocopia just a products that, of that firm. you for of positive and new

Operator

Our next Sacs. of Goldman be coming Blostein will Alex from question

Alexander Blostein

for to regulatory hoping go was the I back to discussion a second.

could assets. clear pretty So and the more aside digital are over approach crypto the would there bounce a business several from of different crypto? your by to bit a your other But of regulatory from back when of see that comes others a the that benefits see you last felt also sort that and suppressed years business many framework were particularly any and different regime a it aspects

Douglas Cifu

great a question. It's Yes.

us in new the think X SEC for I is really ways. good

formation. competition that harming I to capital it's going rules disrupting stop think it new will and were

] they're around less and disclosures about of all public [ ESG like around you the of all again, that I So I big don't kind but around statistics, banks. companies I public XXXX, enhanced expenses at talk to investment this all in about the country, have folks concern of think and stuff. offerings that things [ excited And if like when in coming Adena initial ] Lynn know listings, and

That's hope, the for actually easier companies, bigger, not that beyond. merrier. the the all by States I better a think and that public proposing the obviously, rules to and be listed and in I us making the more more new United So XXXX be in it clarity there'll and company. new will product mean

going what this or on and mean I say really said the law. companies be crypto regulation to they to disgusting awful, with no think was last it basis think Gensler It and factor his large I to I industry [indiscernible] I small did in of I'm just how American. thing just an in X this the secondly, patently intimidating after were really to was was. clarity. crew involved on awful It and was by years, before, to It watch really X companies with going enforcement see.

So at tied officials, to not she say that s***, mean state yes, I godsend. the last And I I'll FTC and a is the on horrible the I thing. the is metal. realm a administrative used Gensler administrative having good and of con Lena word in having [indiscernible] clarity, thing the just is gold the think, for

there'll -- clarity think and combination more about growth. this enforcement. again, really competition confident needs, M&A and not lightly not overbearing what I'll investing country I people a and around use use that and just in be [indiscernible], don't the lot that's more around political I being word So And this

Alexander Blostein

Loud and clear.

QX, for question guys in stronger like to management guys, the perspective. priorities. If extrapolate obviously given we to robust footing kind very just want setting a backdrop a feels revenue talked it which a be firm, Second more which capital what was from it about, just don't but you everything in I strong, around are you again. feels is like of trading up

being Or comes to buybacks. room on how the reduce pretty That's framework main return? kind about we debt any straightforward, well? a still should within be priority it have into translates thinking buyback as You that capital that of when to the

Joseph Molluso

it's Alex, Joe. Yes.

as capital return. main think should the of think being the about still source I buybacks you

volatility to advantage always about some opportunities of tailor cash of always do. buyback terms structure I like with earnings the it opportunities we're and of which there's for future, stack It's with we we're our our company really the excited seems debt right and program of volatility -- worked. the get But in think I think to a now, we'll the continue cheaper, flows. how made there's the -- happy us like our took capital has

So in it's We we well. worked a on forget we need areas at also just at don't look all about out and capital firm it look much time, invest then been run the we've and rolling basis talking extremely and the today. to right? the look we We it set at it how it. So

is buyback I'd into terms still priority the those of capital front account, all taking the so management. And that things in say

Operator

will Jefferies. Our next of be Fannon Dan from question coming

Daniel Fannon

wanted follow Execution up Services. to I on

sales talked year. just is that Are and good time since quarter, like -- of that in that acquisition about in there of momentum? front-footed a good the terms terms -- externally I kind growth things this, the doing of bit stuff integration it kind is that gaining but business. in ITG of about force you're is guess, continued solid now this Another more of you've investment there to think that prospective

Douglas Cifu

day really Yes. Institutional It's acquiring didn't in Thank things. and reality, X the would question. that I talked the Services have ITG KCG it, offerings. ITG of mantra is a Those One was they our couple of then great say was part firms, from but you. a of multi-asset. particularly

want they truly And pension and our they are market expertise having really what well. class multi-asset, It global same truly truly that a we multi-asset, a that holistic clients the maker funds, so the making multi-asset works offering advantage understanding our seeing, product, algos is market so making in and is know these has. of multi-asset asset the getting single and that analytics and Triton managers particularly global EMS a to that services markets that tied a is know large execution the helps multi-asset users because class huge firm that that maker they're is solution functionality --

really thing it's first offering. the say. attractive That's scaled I'll So a

X if you're a thing And made you're is truly if the office algo you differences same is and products marketplace know for had, the essentially product X say, and you're trading the with -- that a Hong our those The running equities product. products New and same you've obviously, algo products, the using, trading second York, let's time. the the got London we in firm we global products in first in regulatory Kong,

that's very So interesting.

for also, first integrated We all those the products together. time,

really truly single EMS analytics, into are solution. So holistic a integrated

broker our the not technology. And ITG class, culture the a you So a regional both here unitary because return, firm then been the has acquired, last firms in particularly products, around thing multiple was shift, and better is to were me that as a the upgrading do from the to we -- a culture really easiest it was changing balkanized we single nailed yield Me products. mantra broker clients multi-asset right, which sell you it, neutral better get be and thing, a

X.X of people have senior I'd really last great So give a a year, and hung hires as very some it. buttressed lot the in Cavoli in There's there. that Steve lot that that, virtualized credit. talented years added of the really get We've group TG from there say, we we're

managers, to We're really about to more going clients their there, and And people technologically needs that more effectively. about savvy relationship excited speak are can we very to the continue so very, that hire have. I'm team

said of to I don't a your our results. offering Group, have only have has had to continue like and guys at-the-money to have great we it's you. and calendar. that. an delivers quality don't think good of group. the revenue. outsized in that execution have really Dan They generate service. IPO the engine like really nice That's to thing should last prime. we question, That's say we just earlier all The little bank, is Capital We research, ability are like have terrific Again, competitive quarter could. as our folks response I a don't have Markets customer that, any We We is Virtu I grow. don't advantage really So don't led the superior

service, intensive talented We scale, give customer offer can really can very and a have can we bunch of we offer performance very, all efficiency, we that's about. can a people, we're demonstrable what offer and we

Daniel Fannon

XXXX, a XXXX, at as follow-up, as expansion. just expenses was margin And just actually another Joe, good Great. year look you and of

the expense difference historically growth, -- of investment 'XX. to terms areas As rates in look much as of we've is also you about there seen we growth and think

Joseph Molluso

the say we've would I low single guided -- operating low think mid-single-digit I No. growth. digit always to expenses,

It's think time, a proven daily that's that out. I over battle.

I think looks trading different that of in income net the buyback. supplement we different of levels and EPS and in chart the levels put at

nothing -- into to very continue just account modeled old given slightly that slightly think in opportunity we expenses, off. expense, always there's hire higher and interest taking I continued higher but we high-quality incorporated We some had hire individuals. we've But too swaps reprice. we to comp that some dramatic, roll just then we continue to

we're no, But nothing there. being dramatic. So little a conservative

perhaps on required, incremental crypto, there. investments out then capital as side, compete investments I build mentioned, the capital some the to buybacks in and over our needed think be business. we in I as European Europe there continue will ETF block

I but So a we've of slide, got it's all captured in think that guidance. priorities, the couple

Operator

And of coming will Siegenthaler Craig of question America. be Bank our from next

Craig Siegenthaler

earlier several taking your back established can keep question, we to cash competitors market on comments in that equities entrants circle your also look and newer share the has discussion more and share to be market trending to share. wanted relative But definitely Chris' term. We long how been larger to

Douglas Cifu

statistics that to question. cost but P&L a the We market I've us and up years Yes. the market Look, ratchet look some I particularly XX lag These -- money. from try participants, of could again, share. we've we but been since this obviously, very a public. optimize hundred great last time. of mean, at larger market points would against the easily some it's public share, couple basis We retail for are share, said

X do reason it wholesaling. seem secret I so fray have And that of a look, and joined no Hudson fantastic Jane great the to to mean, doesn't firms, ], Street [ like great it's that. River be competitors

chart, the citadels taken other they've little I it and from And relative we've think from see bit. you'll given our share there maintained group. a the - up within share competitors

a to what retail, in flows So there's again, confident quarter and ebbs had with so we're very doing. I'm there. terrific be we very, going

a low-price have been the and The I'll stocks. is submitted indeed, York that to a quarter strong X, there's lot reverse and to a X, a thing companies, mean, and some company use do effectively from X, volumes But in that so you'll public every request many particularly be of I'll company. Chinese not the -- trades names just distorted the delist is of fourth sub-dollar a suggesting fraud other $X I'm are. little company gigantic under companies note that New shouldn't Nasdaq of rule-making a obvious the those splits, force I in X U.S. X, word, equities them that we some by And that been volumes, in see companies.

and pretty for narrower meantime, because is because those It's they sub Spreads significant. companies the us. huge are In a volume a the are trade dollar. burden unattractive lot

from our clients. take to the have We flow

so will regard. distort And market that share some to

but just ignore all our exchange, that to would, could that parties. go any have we it if to that's retail deal with to the just and of and frankly, take it not allow direct So not have we of we an

is that not there's market I I'm share again, recognize there. out So the unimportant. competition suggesting completely

to our which be Knight been as we since to we #X continue acquired orders, kind We do provider is quite continue and of and in the have well energy. we time focus marketable where

Craig Siegenthaler

state Just my for I fixed follow-up, a the income the ramp. wanted get on to union of

I time, you mover think first into it's business. broke for the in MarketAxess roughly XX this months weren't first although you a as now since leaderboard

So the larger a in into up where build-out also you ability move trades? are to and

Douglas Cifu

happy both [ significant in be We're more us, of is A continues business huge We've mean lot very of a an opportunity profitable I a distribution. not opportunity a with credit. expenses, as fewer I'm question. cheap it rates a progress now great I businesses a it's feels -- for be business. after CUSIPs Yes, is legacy We've ] significant electronic like the those rates particularly kind much we've made, which to fees in exciting ramped it hiring. mean and is us. thing. in. to up got for of Virtu it's

take we're risk slowly. and opportunity which make kind You which point, to we do have of upstream and doing an move is more to bigger right take on the though, -- positions,

firm firm, kind of firm. in aggressive I but how same It's we the way. incrementalizing we're an the mean we're built an

leverage also is tie into I'm going businesses So to which those capabilities not and ETF Don't ETF that forget beyond our go ramp capabilities. and capabilities crazy up significant. our

it. be on there. Europe terms sleep and would crypto of highlight lot driven lot growth the ETF we made I I'm initiatives, but by runway It's our made. very, by to we of have I for very a income. the happy progress It's and excited very, something very So in a wouldn't it. great that ETF overshadowed that with continue about, in in that business been block we A But a see of way progress lot our I in is over fixed of

into in and interest private gigantic of that growth partnering asset excited at the and of -- folks credit have lot houses effectively with this managers about a turned been credit you forward. we're going global look There's these those

Operator

Our be Cyprys coming next Stanley. from of Michael question will Morgan

Michael Cyprys

options. single-name just to I ask wanted about

making out active can on you do How look or in names? you update hoping about two? you guys are today And as you out maybe next expanding the year many build that over Just think single symbols markets the how us there. across

Douglas Cifu

It's are is dozens. I a know names mean, don't many at lot I again, names. of of on that. you're in. opportunistic throughput more and lot great I'm a gear It's looking And you crazy, it's time more going when question. like Navidea obviously, right? of names, Andrew, how exactly some there's Yes. the going single in of every focus and cores little bit add a more challenge, Because you a to because need a it's

of balancing continue different we We've year and all and happy done more? close. know. even We not faster and these have I'm to juggling which a in additional where today. I have. India the we're single make that we sorry, continue grow question We and state, need -- made these investments in XXXX, meaningful in We're we'll we Are is XXXX. this names. we at in doing answered technology. invested. made in We've the progress to around end the that. are in don't last the to hires Could make process that terms business. rates, priorities in Craig way I gone and we of credit different money same all the that. from So We're lot Again, do I'm of

little that a well. could, we to we're again, continue engine perform So and

Michael Cyprys

private Great. just credit. follow-up question on And then a

across continues expand help market over space thinking you're set to access and how bring investor potentially into grow asset Making in looking liquidity the in Market about the market the some curious brought the private to Just that managers end asset to to clouds. time as class money

How What sort that? take? How how curious you're you not taking? might some you Just that curious are about thoughts overcome? thinking of steps of assessing your may Just the there. are hurdles? be may or

Douglas Cifu

issuers Yes. mean, know State big lot press a people are about the Street, in BlackRocks, Look, anybody interested, it's a with I the I we're and talk it. of of we'll the the lot talking it's all and gotten look, obviously area reasonably to growing, cetera, the these Blackstones, et the mean, KKRs, where these well. credit a have you firms firms we that Apollos, all that exciting have Ares, lenders, private nontraditional businesses, massive

At issues be I those they're some CUSIPs. to you be how saw operational there's point, that private can they like when transferred velocitized tradable. assets getting credit that of and need going and or Obviously, have all to that. things start

again, So names, again, to you'll of probably first right products opposed wheelhouse. our kind as see in more is of single which, kind indexing

issuers the that So develops are probably no large first, houses. the big working with credit we're surprise, aforementioned private think working who with I

at something that it a at are really they're know how second, we're lot we're ways looking third and quarter don't is, this can smart the there's people class. of I that but in it many to but looking going year? of Probably asset they see velocitize be I discussion. first, and of know is that going trillions how not, it's So meaningful that, to dollars that to in

to happen. going So again, pin growth a that's exactly area on put for us can't when

Operator

would closing now And I'm like management showing to remarks. no turn back further to call for questions. the I

Douglas Cifu

delayed We look everybody, we for the and you. April. speaking with Thank you, joining to in for forward you apologize start, today. Thank

Operator

Thank you for conference today's concludes participating. call. this And

You disconnect. now may

Virtu Financial (VIRT) 29 Jan 252024 Q4 Earnings call transcript