Tag: Virtu (Page 1 of 2)

Virtu Co-President Has Sold Big 57% Stake in Company

Market News Daily - Virtu Co-President Has Sold Big 57% Stake in Company.
Market News Daily – Virtu Co-President Has Sold Big 57% Stake in Company.

Virtu Financial Inc., (NASDAQ:VIRT) Co-President and Co-COO Brett Fairclough has sold a big 57% stake in the company.

VIRT stock is down more than -18% this year-to-date and more than -15% in the past trading week.

Brett Fairclough netted about $970k selling shares at an average price of $19.39; the stock is currently trading around $16.

In the last twelve months, the biggest single sale by an insider was when the Executive VP of Markets & Global Head of Execution Services, Stephen Cavoli, sold $2.6m worth of shares at a price of $29.52 per share.

“While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price,” says SimplyWallSt.

Analysts are beginning to take caution with Virtu stock as insider selling has dominated purchasing of the stock.

“Our longer term analysis of insider transactions didn’t bring confidence, either.

Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying!”

The latest data shows Virtu Financial insiders sold more than they bought over the last year.

Latest Virtu Financial News

Market maker Virtu is currently facing new enforcement action by the Securities and Exchange Commission (SEC).

(WSJ) The firm disclosed last week that it is facing a potential enforcement lawsuit from the Securities and Exchange Commission.

Virtu disclosed in a quarterly filing after Friday’s closing bell that it had engaged in settlement discussions with the SEC about an investigation related to “information barriers policies and procedures” between January 2018 and April 2019.

The company first disclosed the probe in February. Its updated disclosure suggested that the SEC could be moving forward with a lawsuit.

Virtu said it “currently believes it may receive a Wells notice from the SEC,” referring to a type of letter that the agency’s staffers send to companies or individuals to inform them of a possible enforcement action.

A Virtu spokesman said the investigation was “primarily focused on an access controls weakness in one of our internal back office systems containing post trade information that theoretically could allow certain system users access greater than what was intended by our policies.”

“We have no reason to believe and have found no evidence that anyone ever made any improper use of any client information”, said Virtu.

Market News Published Daily

Market News Today - Virtu Co-President Has Sold Big 57% Stake in Company.
Market News Today – Virtu Co-President Has Sold Big 57% Stake in Company.

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Virtu Faces New Enforcement Action by the SEC

Market News Daily - Virtu Faces New Enforcement Action by the SEC.
Market News Daily – Virtu Faces New Enforcement Action by the SEC.

Market maker Virtu is currently facing new enforcement action by the Securities and Exchange Commission (SEC).

(WSJ) The firm disclosed last week that it is facing a potential enforcement lawsuit from the Securities and Exchange Commission.

Virtu disclosed in a quarterly filing after Friday’s closing bell that it had engaged in settlement discussions with the SEC about an investigation related to “information barriers policies and procedures” between January 2018 and April 2019.

The company first disclosed the probe in February. Its updated disclosure suggested that the SEC could be moving forward with a lawsuit.

Virtu said it “currently believes it may receive a Wells notice from the SEC,” referring to a type of letter that the agency’s staffers send to companies or individuals to inform them of a possible enforcement action.

A Virtu spokesman said the investigation was “primarily focused on an access controls weakness in one of our internal back office systems containing post trade information that theoretically could allow certain system users access greater than what was intended by our policies.”

“We have no reason to believe and have found no evidence that anyone ever made any improper use of any client information”, said Virtu.

SEC Fines Virtu for Abusing Dark Pools

In 2019, the SEC announced that Virtu Americas LLC (f/k/a KCG Americas LLC) agreed to pay $1.5 million to settle charges for failing to comply with Regulation SCI.

According to the SEC’s order, KCG Americas operated an alternative trading system, or ATS, commonly referred to as a “dark pool.”

An ATS that exceeds certain trading volume thresholds is required to comply with Regulation SCI.

The SEC order finds that KCG Americas implemented an automated system that was intended to keep its dark pool’s trading volume below the volume thresholds by discontinuing trading in particular securities before the thresholds were met.

KCG Americas relied on this system for more than a year and half.

However, according to the SEC’s order, the system did not function as intended, causing trading to exceed the thresholds that triggered the need to comply with Regulation SCI.

The SEC’s order finds that Virtu willfully violated the policy and procedure.

Without admitting or denying the SEC’s findings, Virtu consented to the entry of a cease and desist order and agreed to be censured and to pay a penalty $1.5 million.

Market News Published Daily

Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – Virtu Faces New Enforcement Action by the SEC.

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Biotech Company Suing Citadel Over Market Manipulation

Citadel Market Manipulation
Market News: Biotech Company sues Citadel for market manipulation.

Biotech company Northwest Biotherapeutics is suing Citadel and other market makers for allegedly manipulating its stock price.

The company is accusing Citadel Securities LLC, Susquehanna, Virtu, and other Wall Street firms of driving its stock price down through the use of various illicit trading activities.

One being ‘spoofing‘ orders.

The lawsuit was filed on Thursday in Manhattan federal court. 

Northwest Biotherapeutics alleged the market makers had repeatedly engaged in “spoofing,“ where traders place orders with an intent to fool other investors about a stock’s demand and manipulate the price.

Northwest, whose shares trade over the counter, also sued Canaccord Genuity Inc., G1 Execution Services LLC, GTS Securities LLC, Instinet LLC, Lime Trading Corp. and Virtu Americas LLC.

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Citadel’s Market Manipulation History

Citadel market manipulation
Stock Market News: Citadel accused of market manipulation | Citadel lawsuit + more.

The lawsuit comes as no surprise to the retail community as Citadel has a long history of market manipulation.

From getting accounts suspended in China to settling charges of misconduct and abusing their power in the U.S. markets, Citadel has done it all.

Spoofing was outlawed in 2010 so the practice has since been illegal.

In March, the DOJ targeted hedge fund Muddy Waters for flooding the market with fake shares.

In August, a federal jury in Chicago convicted two former JPMorgan traders who had been charged with spoofing in the gold market.

Now Citadel and others are being accused of using spoofing tactics to drive down the price of Northwest Biotherapeutics.

Will these Wall Street giants receive the same consequences as JPMorgan’s former traders?

I’m curious to know what you think.

Leave your thoughts in the comment section down below.

Related: How Bloomberg’s Beloved Citadel Securities Manipulates the Market

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Source: WSJ


Virtu is Suing the SEC Over Records Request

Market News: Virtu sues SEC | Doug Cifu.
Market News: Virtu sues SEC | Doug Cifu.

Virtu Financial Inc is suing the SEC, alleging on Tuesday its primary regulator had not responded to a public records request.

Virtu, a market maker with a large equities business, said it submitted a Freedom of Information Act (FOIA) request in June to determine if the SEC had met legal requirements to evaluate potential investor harm and market risks while considering new rules for the handling and execution of retail stock orders.

The SEC declined to comment.

The FOIA request sought, among other things, communications between SEC Chair Gary Gensler and various stakeholders involved in retail stock trading.

“What we’re doing is exercising our rights as citizens … to understand what this Chair is looking at and who he’s meeting with,” Virtu Chief Executive Doug Cifu told Reuters.

“We think it’s important that there be clarity and transparency — that’s what the SEC requires of us as a listed company, so we’re just taking that same standard and saying, be transparent in how you’re dealing with potentially seismic changes to equity market structure,” he added.

Cifu has said Virtu may sue the SEC over other potential rule changes Gensler outlined in June.

What Does the Market Maker Fear?

Virtu SEC Lawsuit Update.
Virtu SEC Lawsuit Update.

The industry has attacked the SEC as several plans to level the playing field for retail investors have been proposed, one being the ban of PFOF (payment for order flow).

Now it seems market makers such as Virtu want to know ahead of time what the SEC is up to in order to act now.

Virtu suing the SEC speaks volumes since majority of retail investors have doubted the SEC has true power to create any change in the market.

I’m curious to know what you think.

Leave your thoughts in the comment section down below.

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