Virtu Financial expands its short-term borrowing capacity

Maria Nikolova

The company has amended its existing syndicated broker-dealer credit facility, increasing borrowing limits for clearing house margin by $150 million through June 30, 2020.

Virtu Financial Inc (NASDAQ:VIRT) today announced its preliminary results for the quarter to date and an expansion of its short-term borrowing capacity.

Douglas A. Cifu, CEO of Virtu Financial, explains:

“Given the sustained levels of extraordinary volatility in the current macro environment and the unique opportunity this affords Virtu to provide valuable liquidity to customers across the global markets and execution services to our clients, we consider it prudent to opportunistically supplement our borrowing capacity.”

The opportunistic borrowing capacity enhancements announced today are the result of the following transactions:

  • Entry into a $300 million 180-day committed credit facility with an affiliate of Virtu’s Founder and Chairman Emeritus, Mr Vincent Viola, together with a warrant agreement for the issuance of up to 10 million warrants to purchase Class A common shares of Virtu at a strike price to be calculated based on the Company’s stock price over a two week period following the publication of the Company’s first quarter results in May. Three million warrants are issuable at closing, with the balance issued following a draw of $100 million or more.

The transaction has secured the unanimous approval by Virtu’s disinterested directors.

  • Amendment of its existing syndicated broker-dealer credit facility, increasing borrowing limits for clearing house margin by $150 million through June 30, 2020.

On a preliminary basis, the company expects its results of operations for the quarter to date through March 19, 2020 to reflect:

  • Trading Income, net between $489 and $497 million;
  • Adjusted Net Trading Income between $509 and $519 million;
  • Average Daily Adjusted Net Trading Income between $9.43 and $9.61 million per day.

Virtu is set to report its results for the first quarter of this year on May 7, 2020.

Read this next

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

<