Virtu Financial Offloads BondPoint to Intercontinental Exchange

Virtu Financial (NASDAQ:VIRT) has continued making moves that will shake up the institutional space. After acquiring KCG Holdings (NYSE:KCG) in a landmark deal earlier this year, the group has undergone an agreement to offload fixed income trading venue BondPoint to Intercontinental Exchange.

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BondPoint is a provider of electronic fixed income trading solutions, delivering access to centralized Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and automated, cost-efficient trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term services. The deal will net Virtu Financial upwards of $400 million for the fixed income trading venue. By extension, Intercontinental Exchange (ICE) will strengthen its own operations with the group, which caters to both buy-side and sell-side traders.

Douglas A. Cifu, Chief Executive Officer of Virtu, commented on the sale: "After a thorough analysis, we concluded that BondPoint is a unique asset better suited to operate outside of Virtu’s core operations. Following a competitive process, ICE distinguished itself as a strong and stable global organization that could provide the best home for BondPoint, its customers, and its employees.”

The deal is important for both parties and a game changer in the fixed income space for ICE. BondPoint represents an electronic marketplace linking more than 500 financial services firms. The move should help ICE bolster its own fixed income operations in its latest M&A activity of 2017.

Despite the announcement, the sale of BondPoint is expected to be completed in by Q1 2018, pending the requisite regulatory reviews and approvals. For its part, Virtu Financial will provide additional details during its Q3 earnings call early next month on November 7, 2017. The $400 million that Virtu Financial will net is likely to be used to repay a portion of its outstanding term loan.

“The management team of BondPoint has done an extraordinary job over the years creating a leading franchise in credit trading,” added Mr. Cifu.