October 29, 2012
Virtu Financial has announced its acquisition of the ETF market-making business of Nyenburgh Holdings, the Amsterdam-based trading firm. The terms of the deal were not disclosed.
New York-based Virtu specialises in electronic trading and market making in equities, fixed income, currencies and commodities, and was founded was founded in 2008 by Vincent Viola, former chairman of the New York Mercantile Exchange. Nyenburgh is one of the leading European ETF market makers.
“Nyenburgh is a very well-established company, with a wealth of expertise in the ETF marking making space and the transaction is consistent with our goal of becoming the leading provider of liquidity in the European ETF space,” said Douglas Cifu, President and COO of Virtu.
We are excited about joining the Virtu family,” said Bart Lijnse, Managing Director at Nyenburgh.
“Vincent Viola has been one of the pioneers in electronic trading, and with Virtu, he and his management team have built a company that is a leading provider of liquidity across most major asset-classes traded around the globe.”
Nyenburgh was advised by Barclays in its sale.
Despite falling trading volumes in equities and ETFs, US high-frequency trading firms have recently been making a determined push into the European ETF market-making business.
In April Nyenburgh’s close rival in Amsterdam, Flow Traders, announced that it had appointed Lazard as a financial adviser with a view to a possible sale of the business. Various press reports have suggested that US trading firms are the likely purchasers of Flow Traders. Getco, a leading US high-frequency trading firm, recently hired Aidan Hsu, formerly head of European ETF trading at Credit Suisse.
JOURNAL OF INDEXES EUROPE