By Duncan Wood
Published July 24, 2014 Risk
High-frequency-trading firm Virtu Financial has been executing test interest rate swap trades on a broker-run central limit order book (Clob) – one of only two non-banks known to have done so. The company, best known as an equities trader, is preparing to take on incumbent dealers by launching an over-the-counter derivatives market-making business, says president and chief operating officer, Chris Concannon.
"We definitely see this as an opportunity. We view ourselves as a market-maker in a lot of asset classes globally, including rates and fixed income. Just look at interest rate swaps – the two-year swap is fairly liquid, there is a lot of interest in it and it is traded in various major currencies, so it has a lot of the attributes we find attractive," he says.
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