Virtu IPO SEC filing #s
http://www.bloomberg.com/news/2014-03-11/virtu-filing-shines-light-on-b…
https://www.sec.gov/Archives/edgar/data/1592386/000104746914002070/a221…
Averaging $1.6mm per trading day globally, trading revenues of $414mm for 2013 after exchange fees. One losing day in 5 years of trading which isn't really surprising for a market maker.
Looks like net trading revenues less non-fee and non-comp costs were about $211mm, and comp was $78mm, so paying out about 37% of (P&L - costs) to employees.
Only 150 people so $2.8mm in P&L per employee and average comp of $520k. I imagine this is skewed so there are clearly some people in prop trading that are still crushing it.
I think these are really strong numbers considering market conditions are still relatively slow. Is there a better pure market making firm out there? KCG may be close or better but has tons of employees. The Dutch options guys may put up better revenue numbers but the options business is less automated and they have far more mouths to feed.
With competitors dropping out left and right what are these guys doing differently to stay in the game?
As pointed out here http://www.bloombergview.com/articles/2014-03-11/high-speed-trader-isn-… all these numbers come out with this bizarre proviso:
"we and our independent registered public accounting firm identified a material weakness in our internal controls over financial reporting... This material weakness related to our inability to prepare accurate financial statements, resulting from a lack of reconciliations, a lack of detailed review and insufficient resources and level of technical accounting expertise within the accounting function,"
In light of the above, I am just not sure I should believe anything they say...
I'm not looking at it from an investor's perspective, just thought it was interesting to get a rare look at prop trading financials. In any case, I'd like to assume good faith on their part. At such a small company with the vast majority of the employees either trading, doing research or writing software, it's unlikely that they'll run their accounting department at a public company level.
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