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美国
证券交易委员会
华盛顿特区20549
 
表格 10-Q 
（标记一）
 
☒ 根据1934年证券交易法第13或15（d）条季度报告
截至季度结束日期的财务报告2024年9月30日
或者
☐根据1934年证券交易所法案第13或15(d)条规定提交的过渡报告
过渡期从     到     
委员会档案编号：001-37352
维积金融公司。
(根据其章程规定的注册人准确名称)
特拉华州32-0420206
（设立或组织的其他管辖区域）（纳税人识别号码）
10019
1633 Broadway
纽约 纽约
，（主要行政办公地址）(邮政编码)
 
(212) 418-0100
(注册人电话号码，包括区号) 
在法案第12(b)条的规定下注册的证券：
每一类的名称交易标的在其上注册的交易所的名称
A类普通股，每股面值$0.00001VIRT纳斯达克证券交易所 LLC
请勾选以下内容说明注册人(1)在过去的12个月内(或其需要提交此类报告的较短期间)是否已提交1934年证券交易法第13或15(d)篇要求提交的所有报告，以及(2)在过去90天内是否已受到此类提交要求。 是 ☒ 否 ☐
请在以下勾选方框表示注册人是否已在Regulation S-T Rule 405规定的前12个月(或在注册人需要提交此类文件的较短期间内)提交了每个互动数据文件。是 ☒ 没有 ☐
请勾选标记以说明注册人是大型快速申报人、加速申报人、非加速申报人、较小的报告公司还是新兴成长型公司。请查看《交易所法》第120亿.2条中“大型快速申报人”、“加速申报人”、“较小的报告公司”和“新兴成长型公司”的定义。
大型加速报告人
☒
加速文件提交人☐非加速文件提交人☐小型报表公司 ☐
  新兴成长公司 ☐
 
如果是新兴增长企业，请在选择方框中标明是否选择不使用根据证券法第13(a)条规定提供的任何新的或修订的财务会计准则的延长过渡期来符合规定。 ☐
请勾选以下选项以指示注册人是否为外壳公司(根据交易所法规则12b-2定义)。是☐ 否 ☒
股票类别
2024年10月21日的普通股总股数
A类普通股，每股面值$0.0000185,953,825
C类普通股，每股面值$0.000018,575,052
D类普通股，每股面值$0.0000160,091,740
 
1
目录




维尔图金融公司及其子公司
10-Q表的指数
2024年9月30日结束的季度
      页码
编号
    
第一部分 -
  
    
  
    
  
  
  
  
  
    
 
    
 
    
 
    
  
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
  


1
目录
第一部分

项目1.基本报表
2024年6月30日（未经审计）和2023年9月30日的简明综合资产负债表。
 
 页码
编号
 
  
  
  
  
2
目录
Virtu Financial, Inc.及其附属公司
未经审计的基本财务状况综述
（以千为单位,股份数据除外）2020年9月30日
2024		12月31日
2023
资产
现金及现金等价物 $701,405 $820,436 
依法规定和其他限制或隔离的现金36,823 35,024 
证券借入2,301,690 1,722,440 
通过回购协议购买的证券708,773 1,512,114 
经纪商和结算组织应收款项（$41,837 和 $— 截至2024年9月30日和2023年12月31日的公允价值
1,194,193 737,724 
交易资产，按公允价值计量：
拥有的金融工具5,195,334 6,127,752 
拥有并质押的金融工具1,990,693 1,230,859 
应收客户款169,565 106,245 
房地产、设备和资本化软件（减去累计折旧$369,697 和 $367,779 截至2024年9月30日和2023年12月31日，分别)
93,899 100,365 
经营租赁权使用资产190,261 229,499 
商誉1,148,926 1,148,926 
无形资产（减去累计摊销$416,677 和 $381,973 截至2024年9月30日和2023年12月31日，分别)
214,971 257,520 
递延所得税资产122,399 133,760 
持有待售业务的资产4,637 — 
其他资产 ($105,162 和 $84,521，按公允价值计量，分别截至2024年9月30日和2023年12月31日
327,137 303,720 
总资产$14,400,706 $14,466,384 
负债和权益
负债
短期借款$128,761 $— 
证券借贷2,109,164 1,329,446 
协议回购出售的证券1,045,811 1,795,994 
经纪商和清算组织的应付款（$88,318 和 $7,661，截至2024年9月30日和2023年12月31日的公允价值）
619,640 1,167,712 
应付客户款项97,774 23,229 
按公允价值计量的交易负债：
已售出的金融工具，尚未购买6,335,171 6,071,352 
应税款协议义务196,254 216,480 
应付账款、应计费用及其他负债469,796 451,293 
经营租赁负债236,253 278,317 
长期借款1,741,543 1,727,205 
待售业务负债1,184 — 
负债合计12,981,351 13,061,028 
承诺和 contingencies（注 15）
Virtu Financial Inc.股东权益
每股面值$0.00001）, 授权 - 1,000,000,000和页面。1,000,000,000 股份，已发行 - 137,223,462和页面。134,901,037 股份，流通股 - 86,392,168和页面。89,092,686 2024年9月30日和2023年12月31日的股份，分别
1 1 
B级普通股（面值$0.00001), Authorized — 175,000,000和页面。175,000,000 shares, Issued and Outstanding — 0和页面。0 2024年9月30日和2023年12月31日的股份，分别
— — 
Class C common stock (par value $0.00001), Authorized — 90,000,000和页面。90,000,000 股份，已发行和待发行 — 8,575,052和页面。8,607,998 2024年9月30日和2023年12月31日的股份，分别
— — 
D类普通股（面值 $0.00001）, 已授权 — 175,000,000和页面。175,000,000 股份，已发行和待发行 — 60,091,740和页面。60,091,740 2024年9月30日和2023年12月31日的股份，分别
1 1 
截至2024年3月31日和2023年12月31日，公司的库藏股票分别有2,279,784股和2,693,653股。50,831,294和页面。45,808,351 2024年9月30日和2023年12月31日的股份，分别
(1,282,210)(1,166,299)
额外实收资本1,415,956 1,351,574 
1,102.01,097,693 1,000,403 
3
目录
Virtu Financial, Inc.及其附属公司
基本报表的控件汇总财务状况（未经审计）
（以千为单位,股份数据除外）九月30日,
2024		12月31日,
2023
累计其他综合收益(亏损)964 17,047 
Virtu Financial Inc.的股東權益合計1,232,405 1,202,727 
非控股权益186,950 202,629 
股东权益总计1,419,355 1,405,356 
负债和所有者权益总额$14,400,706 $14,466,384 
请查看附注的未经审计的简明合并基本报表。
4
目录
Virtu Financial, Inc.及其附属公司
未经审计的简化合并综合收益表
 截至9月30日的三个月截至9月30日的九个月
(以千为单位，除每股数据外)2024202320242023
营收：
交易收入净额$443,997 $316,085 $1,278,487 $1,034,764 
利息和分红收入125,229 127,693 338,287 307,916 
佣金净额和科技服务131,621 110,276 376,333 341,223 
其他，净额5,993 76,110 49,557 73,493 
总收入706,840 630,164 2,042,664 1,757,396 
营业费用：
券商、交易所、清算费用和订单支付净额176,745 123,245 467,331 391,238 
通信和数据处理59,601 57,066 177,110 170,837 
员工薪酬和工资税107,646 97,221 314,185 296,214 
利息和分红支出136,070 132,802 385,791 342,896 
运营和行政24,939 22,416 69,346 72,204 
折旧和摊销16,486 15,815 48,640 47,076 
购买无形资产和购买资本化软件的摊销11,848 15,967 38,688 48,007 
终止办公租赁合同17 364 50 314 
与债务再融资、提前偿还和承诺费用相关的债务发行成本1,767 1,796 27,740 5,744 
交易咨询费用和支出69 6 264 30 
长期借款的融资利息支出24,492 25,361 71,154 74,499 
营业费用总计559,680 492,059 1,600,299 1,449,059 
所得税前收益和非控股权益147,160 138,105 442,365 308,337 
所得税费用28,137 20,512 83,917 51,117 
净利润119,023 117,593 358,448 257,220 
非控股权益(59,071)(55,678)(176,093)(120,722)
普通股股东可用净利润$59,952 $61,915 $182,355 $136,498 
每股收益
Basic$0.65 $0.63 $1.95 $1.36 
Diluted$0.64 $0.63 $1.95 $1.36 
加权平均流通股份
Basic87,152,658 93,408,537 88,093,082 95,376,590 
Diluted87,536,847 93,408,537 88,340,592 95,376,590 
净利润$119,023 $117,593 $358,448 $257,220 
其他综合收益
汇率期货翻译调整，净税后6,835 (4,005)3,745 170 
未实现现金流量套期交易收益（损失）净变动，净税后(19,568)(7,646)(30,931)(12,612)
综合收益106,290 105,942 331,262 244,778 
少数股东应占综合收益(54,083)(50,832)(164,990)(115,557)
归属于普通股股东的综合收益$52,207 $55,110 $166,272 $129,221 
 
请查看附注的未经审计的简明合并基本报表。
5
目录
Virtu Financial, Inc.及其附属公司
经过核对的综合权益变动表（未经审核）
2024年和2023年截至9月30日的三个和九个月
A级普通股C类普通股D类普通股库藏股资本公积金保留收益（累积赤字）累积其他综合收益（损失）virtu financial inc股东权益总额非控股权益股东权益总额
(以千为单位，除分红派息和股份及利息资料外)
股份金额股份金额股份金额股份金额金额
2023年12月31日余额134,901,037 $1 8,607,998 $— 60,091,740 $1 (45,808,351)$(1,166,299)$1,351,574 $1,000,403 $17,047 $1,202,727 $202,629 $1,405,356 
股份报酬2,596,226 — — — — — — — 28,883 — — 28,883 — 28,883 
库藏股购买(946,267)— — — — — (1,959,076)(35,889)— (16,013)— (51,902)— (51,902)
净利润— — — — — — — — — 55,817 — 55,817 55,491 111,308 
汇率期货调整— — — — — — — — — — (2,037)(2,037)(1,489)(3,526)
现金流动价差对冲收益的净变动— — — — — — — — — — 894 894 653 1,547 
分红派息 ($0.24 virtu金融向非控股权益支付给予每股A类普通股和参与限制股份单位和限制股份奖励的分红派息
— — — — — — — — — (22,660)— (22,660)(44,929)(67,589)
2024年3月31日止结余136,550,996 $1 8,607,998 $— 60,091,740 $1 (47,767,427)$(1,202,188)$1,380,457 $1,017,547 $15,904 $1,211,722 $212,355 $1,424,077 
股份报酬20,000 — — — — — — — 13,076 — — 13,076 — 13,076 
库藏股购买(8,665)— — — — — (1,384,593)(31,244)— (191)— (31,435)— (31,435)
股票期权已行使29,375 — — — — — — — 558 — 558 — 558 
净利润— — — — — — — — — 66,586 — 66,586 61,531 128,117 
汇率期货翻译调整— — — — — — — — — — 221 221 215 436 
未实现现金流避险收益的净变化— — — — — — — — — — (7,416)(7,416)(5,494)(12,910)
分红派息 ($0.24 virtu金融向非控制权益支付Class A和Class B普通股、参与限制性股票单位和限制性股票奖酬的每股分红和分配
— — — — — — — — — (22,368)— (22,368)(70,727)(93,095)
2024年6月30日余额136,591,706 $1 8,607,998 $— 60,091,740 $1 (49,152,020)$(1,233,432)$1,394,091 $1,061,574 $8,709 $1,230,944 $197,880 $1,428,824 
股份报酬204,193 — — — — — — — 13,297 $— — 13,297 — 13,297 
回购C类普通股— (1,849)— — — — — (52)$— — (52)— (52)
库藏股购买(57,204)— — — — — (1,679,274)(48,778)— (1,641)— (50,419)— (50,419)
股票期权已行使453,670 — — — — — — — 8,620 — — 8,620 — 8,620 
净利润— — — — — — — — — 59,952 — 59,952 59,071 119,023 
汇率期货翻译调整— — — — — — — — — — 3,455 3,455 3,380 6,835 
未实现现金流对冲收益的净变动— — — — — — — — — — (11,200)(11,200)(8,368)(19,568)
分红派息 ($0.24 virtu financial inc给非控制权益的普通股A类和B类及参与限制股票单元和限制股票奖金股息及派息
— — — — — — — — — (22,192)— (22,192)(65,013)(87,205)
在员工交换中发行普通股31,097 — — — — — — — — — — — — — 
重新购买virtu金融单位，并相应地以C类普通股进行员工交换— — (31,097)— — — — — — — — — — — 
2024年9月30日结余137,223,462 $1 8,575,052 $— 60,091,740 $1 (50,831,294)$(1,282,210)$1,415,956 $1,097,693 $964 $1,232,405 $186,950 $1,419,355 
6
目录
Virtu Financial, Inc.及其附属公司
经过核对的综合权益变动表（未经审核）
2024年和2023年截至9月30日的三个和九个月
A级普通股C类普通股D类普通股库藏股资本公积金保留收益（累积赤字）累积其他综合收益（损失）virtu金融公司股东权益合计非控股权益股东权益总额
(以千元计算，除了每股分红派息和利息资料)
股份金额股份金额股份金额股份金额金额
2022年12月31日结余133,071,754 $1 9,030,066 $— 60,091,740 $1 (34,522,290)$(954,637)$1,292,613 $972,317 $31,604 $1,341,899 $309,528 $1,651,427 
股份报酬2,393,550 — — — — — — — 31,030 — — 31,030 — 31,030 
Class C普通股的回购— (21,498)— — — — — (424)— — (424)— (424)
库藏股购买(902,947)— — — — — (3,932,499)(75,568)— (17,650)— (93,218)— (93,218)
净利润— — — — — — — — — 57,881 — 57,881 52,202 110,083 
汇率期货调整— — — — — — — — — — 980 980 668 1,648 
现金流量避险收益的未实现变动— — — — — — — — — — (7,834)(7,834)(5,334)(13,168)
分红派息 ($0.24 每股A类普通股和参与式限制股单位和限制股奖的分红派息，以及virtu金融向非控股权益支付的分红派息
— — — — — — — — — (24,696)— (24,696)(27,308)(52,004)
与员工交换相关的普通股发行152,037 — — — — — — — — — — — — — 
购回virtu金融单位及相应数量的C类普通股，以及与员工交换相关的普通股回购— — (152,037)— — — — — — — — — — — 
2023年3月31日结束余额134,714,394 $1 8,856,531 $— 60,091,740 $1 (38,454,789)$(1,030,205)$1,323,219 $987,852 $24,750 $1,305,618 $329,756 $1,635,374 
股份报酬20,000 — — — — — — — 12,050 — — 12,050 — 12,050 
库藏股购买(9,147)— — — — — (2,265,811)(41,579)— (165)— (41,744)— (41,744)
净利润— — — — — — — — — 16,702 — 16,702 12,842 29,544 
汇率期货翻译调整— — — — — — — — — — 1,503 1,503 1,024 2,527 
未实现现金流避险收益的净变化— — — — — — — — — — 4,879 4,879 3,323 8,202 
分红派息 ($0.24 virtu金融向非控股利益支付A类和B类普通股、参与限制性股票单位和限制性股票奖励的股息和分配
— — — — — — — — — (23,908)— (23,908)(69,744)(93,652)
2023年6月30日结余134,725,247 $1 8,856,531 $— 60,091,740 $1 (40,720,600)$(1,071,784)$1,335,269 $980,481 $31,132 $1,275,100 $277,201 $1,552,301 
股份报酬144,783 — — — — — — — 11,634 — — 11,634 — 11,634 
回购C类普通股— — (214,176)— — — — — (3,596)— — (3,596)— (3,596)
库藏股购买(38,409)— — — — — (2,689,932)(48,717)— (703)— (49,420)— (49,420)
净利润— — — — — — — — — 61,915 — 61,915 55,678 117,593 
汇率期货翻译调整— — — — — — — — — — (2,339)(2,339)(1,666)(4,005)
未实现现金流量避险收益的净变动— — — — — — — — — — (4,466)(4,466)(3,180)(7,646)
分红派息 ($0.24 virtu金融向非控制股权支付的A类和B类普通股以及参与式限制股单位和限制股奖项的分红和分派
— — — — — — — — — (23,492)— (23,492)(82,719)(106,211)
购回virtu金融单位及相应数目的C类普通股，以回应员工交换34,357 — — — — — — — — — — — — — 
发行与员工交换相关的税务应收协议— — (34,357)— — — — — — — — — — — 
截至2023年9月30日的结余134,865,978 $1 8,607,998 $— 60,091,740 $1 (43,410,532)$(1,120,501)$1,343,307 $1,018,201 $24,327 $1,265,336 $245,314 $1,510,650 
请参阅附注未经审核的简明综合财务报表。
7
目录
Virtu Financial, Inc.及其附属公司
综合现金流量表（未经核数）
 截至9月30日的九个月
（以千为单位）20242023
来自经营活动的现金流量
净利润$358,448 $257,220 
调整，以将净利润调整为经营活动产生的净现金流量：
折旧与摊提48,640 47,076 
已购入无形资产及购置资本化软体摊提38,688 48,007 
与债务再融资及预偿相关的债务发行成本22,563 306 
债务发行成本及递延融资费用摊销5,203 5,260 
办公室租赁终止合同50 314 
基于股份的报酬50,941 47,108 
递延税款16,590 16,566 
其他(41,574)1,794 
营运资产和负债的变化：
借出证券(579,250)(336,503)
担保再购买的证券803,341 (2,790,073)
经销商和清算机构应收款项(456,607)(596,916)
交易资产，以公允价值衡量172,584 (3,656,973)
客户应收账款(63,320)(67,615)
营运租赁权使用资产39,238 25,631 
其他资产(12,968)13,795 
借出证券779,718 399,548 
根据回购协议出售的证券(750,183)2,749,399 
经销商和清算机构应付款项(547,821)266,621 
应付款项给客户74,545 27,849 
交易负债，按公允价值计量263,819 3,744,498 
营业租赁负债(42,064)(27,953)
应付帐款、应计费用及其他负债26,928 (31,268)
经营活动产生的净现金流量207,509 143,691 
投资活动产生的现金流量
开发已资本化软体(34,507)(31,961)
资产及设备的收购(12,608)(24,292)
其他投资活动(8,544)(14,210)
投资活动中使用的净现金(55,659)(70,463)
财务活动中的现金流量
分红派息给股东和virtu金融分配给非控制权益(247,889)(251,867)
买回库藏股(132,942)(184,382)
股票期权已行使9,178 — 
短期借款净额129,574 96,056 
长期借款所得1,741,888 — 
长期借款还款(1,727,000)(18,000)
利率互换交易收入1,955 — 
支付税收协议债务(20,226)(23,275)
债务发行成本(27,365)(3,817)
筹集资金的净现金流量(272,827)(385,285)
汇率变动对现金及现金等价物的影响3,745 170 
现金及现金等价物净减少额(117,232)(311,887)
现金、现金等价物及限制性或隔离现金，期初855,460 1,038,242 
期末现金、现金等价物、受限或隔离现金$738,228 $726,355 
现金流量资讯的补充披露
支付利息的现金$426,757 $370,761 
8
目录
Virtu Financial, Inc.及其附属公司
综合现金流量表（未经核数）
 截至9月30日的九个月
（以千为单位）20242023
支付的税金现金32,576 33,595 
非现金投资活动
与资本化软体相关的基于股份和应计的开发者奖励补偿14,931 14,665 
非现金筹资活动
回购C类普通股(52)(4,020)
 
请参阅附注未经审核的简明综合财务报表。
9

Virtu Financial, Inc.与其子公司
基本报表注解（未经核数）
（除非另有说明，所有金额均以千美元为单位，股份和每股金额除外）
1. 组织和报告基础

组织

附带的压缩合并基本报表包含virtu金融公司的账户和业务（“VFI”或与其完全拥有或控制的子公司一起，“virtu”或“公司”）。VFI是一家特拉华州公司，其主要资产是对virtu金融有限责任公司（“virtu金融”）的所有权利益。截至2024年9月30日，VFI拥有virtu金融约 57.2％的virtu金融成员权益。VFI是virtu金融的唯一管理成员，负责管理和控制virtu金融及其子公司（“集团”）的一切业务和事务。

该公司是一家领先的金融公司，利用尖端技术为全球市场提供流动性，并为客户提供创新、透明的交易解决方案。该公司提供超过的深度流动性，分布在超过的交易所，在全球的个国，帮助打造更有效率的市场。该公司借助其全球市场结构专业知识和规模化的多资产基础设施，为客户提供包括执行、流动性来源、分析以及中立经纪人、多交易商平台和工作流技术在内的强大产品组合。该公司的产品系列使客户能够在超过的交易所、在超过的个国以及跨越全球多个资产类别进行交易，包括全球股票、etf、期权、汇率期货、固收、加密货币和其他大宗商品。该公司集成的多资产分析平台提供一系列的交易前后服务、数据产品和合规工具，供客户依赖以在全球市场进行投资、交易和风险管理。 25,000 金融工具逾的深度流动性，在的交易所分布，全球的个国，打造更有效率的市场。 250 国超过的交易所，在个 40 国全球的个 50 国超过的交易所，在个，包括全球股票、etf、期权、汇率期货、固收、加密货币和其他大宗商品。公司的集成

该公司已完成重大收购，扩展并补充了virtu金融原始的电子交易和市场业务。 两个 在2017年7月20日，该公司完成对KCG Holdings, Inc.（“KCG”）的全现金收购（“KCG收购”）。在2019年3月1日（“ITG结业日期”），该公司以全现金交易方式完成了对Investment Technology Group, Inc.及其子公司（“ITG”）的收购（“ITG收购”）。

virtu金融的主要美国（"U.S."）子公司是Virtu Americas LLC（"VAL"），它是一家美国经纪商。其他主要美国子公司包括Virtu Financial Global Markets LLC，一家专注于期货和货币交易的美国交易实体；Virtu ITG Analytics LLC，一家提供交易前后分析、公平价值和交易优化服务的供应商；以及Virtu ITG Platforms LLC，一家提供工作流程技术解决方案和网络连接服务的供应商。主要的外国子公司包括设立于爱尔兰的Virtu Financial Ireland Limited（"VFIL"）和Virtu Europe Trading Limited（"VETL"）（前身为Virtu ITG Europe Limited）；设立于英国的Virtu ITG Uk Limited（"VIUK"）；设立于加拿大的Virtu Canada corp（前身为Virtu ITG Canada Corp.）；设立于澳洲的Virtu Financial Asia Pty Ltd.和Virtu ITG Australia Limited；设立于香港的Virtu ITG Hong Kong Limited；以及设立于新加坡的Virtu Financial Singapore Pte. Ltd.和Virtu ITG Singapore Pte. Ltd.，它们都是专注于各自地理区域的资产类别的交易实体。

公司有 两个 营运节段: (i) 市场做市业务和 (ii) 执行服务; 及 一年。 非营运节段: 公司。请参阅附注21“地理信息和业务节段”以进一步讨论公司的节段。

公司于2024年4月19日与marketaxess holdings inc.（“marketaxess”）签订了一份单位购买协议，以卖出一 49％的持有权益，去掉多资产报价通讯平台合资企业（“JV”），RFQ-hub Holdings LLC。详情请参阅附注3“待售业务”。

合并基础和表达形式

这些综合财务报表以美元呈现，根据美国证券交易委员会（"SEC"）的规则和法规，根据美国公认的会计标准（"U.S. GAAP"）与财务会计准则委员会（"FASB"）在会计标准编码（"ASC"或"Codification"）中制定的规则编制，并反映管理层认为是正常和常见，并且对于所呈现的期间的结果是必要的调整，以公正地陈述。根据SEC的规则和法规，某些通常包含在按照美国GAAP编制的财务报表中的信息和附注披露已根据SEC的规则和法规做了精简或遗漏。
10

公司的综合财务报表包括对virtu金融及其子公司的股权。作为virtu金融唯一的管理成员，公司对集团的营运施加控制。公司合并virtu金融及其子公司的财务报表，将公司没有拥有的virtu金融股权记录为非控制权益。所有关联公司账户和交易在合并中已被消除。

2. 重要会计政策摘要
有关公司重要会计政策的详细讨论，请参阅我们基本报表中第II部分第8项的附注2《重要会计政策摘要》，该报表包含我们截至2023年12月31日年终的10-k表格。

最近采纳的会计准则

公允价值衡量 - 2022年6月，FASb发布了ASU 2022-03， 基本报表。该ASU澄清了合同销售限制对股权价值的影响。此外，该ASU要求披露销售限制的性质和剩余期限。公司于2024年1月1日采纳了该ASU，对其简明综合基本报表没有实质影响。

租赁-共同控制安排 - 2023年3月，FASb发布了ASU 2023-01， 基本报表—共同控制安排 (主题842)。该ASU为共同控制租赁和租赁改良提供了更新的会计指引。公司于2024年1月1日采纳了该ASU，并且对其简明合并基本报表没有实质影响。

投资 - 适用权益法及合资企业 - 2023年3月，FASB发布ASU 2023-02， 投资-适用权益法及合资企业（主题323），此ASU提供了有关会计纳入税收抵免结构投资的更新指导。公司于2024年1月1日采纳了该ASU，对其简明综合财务报表没有实质影响。

截至2024年9月30日尚未采纳的会计准则

业务合并—创业公司形成 - 2023年8月，FASB发布ASU 2023-05， 业务合并—创业公司形成（主题805-60）。此ASU提供有关会计处理创办创业公司的更新指引。该ASU将从2025年1月1日起对于成立于此之后的创业公司具有前瞻性效力。公司预期这不会对其简明合并财务报表造成重大影响。

板块报告 - 2023年11月，FASb发布了ASU 2023-07。 分段报告（专题280）。此ASU要求增加披露有关上市公司可报告部门的信息。它旨在向基本报表用户提供更加细分的信息，特别是每个可报告部门的重要费用。此ASU自2023年12月15日后开始有效，并适用于2024年12月15日后开始的财政年度的中期时段。公司预计对其简明合并财务报表及相关披露不会产生重大影响。

无形资产-商誉及其他-加密资产 - 2023年12月，FASB发布ASU 2023-08， 无形资产-商誉及其他-加密资产（主题350-60）。该ASU要求以公平价值衡量在范围内的加密资产，并提供有关加密资产的更新指引和披露要求。本ASU自2024年12月15日后开始的期间生效。公司目前正在评估本ASU对其简明合并财务报表及相关披露的影响，并将在2024年12月15日后开始的期间遵守披露要求。

所得税 - 2023年12月，FASB发布了ASU 2023-09。 所得税（第740话题）这项ASU要求披露有关有效税率和所支付所得税的额外资讯。该ASU将于2024年12月15日后开始生效。公司目前正在评估此ASU的影响，但预计不会对其基本报表及相关披露产生实质影响。

补偿-股票补偿 - 2024年3月，FASB发布了ASU 2024-01。 补偿-股票补偿 (主题718)。该ASU通过实例澄清ASC 718范围应用于利润利益或类似奖项。该ASU自2024年12月15日后开始生效。公司目前
11

评估此ASU的影响，但不预期对其基本报表及相关披露产生实质影响。

基准改善 - 2024年3月，FASB发布了ASU 2024-02， 基准改善。 该ASU旨在通过删除对概念声明的参考，改善和简化基准的语言和结构。此修订将于2024年12月15日后开始的期间生效。公司目前正在评估此ASU的影响，但不认为对其简明编制财务报表和相关披露有实质影响。

3. 待售业务

2024年4月19日，公司与marketaxess holdings inc.（「marketaxess」）签署了单位购买协议，根据该协议，公司已同意卖出一定比例的股权。 49RFQ-hub Holdings LLC（「RFQ-hub Holdings」）多资产请求-报价通讯平台JV的持股利益，预计销售23%，但仍须符合各种交割条件，包括获得某些监管机构的批准。在本次销售交割后，公司将保留RFQ-hub的少数股权。

业务持有待售之资产和负债摘要如下：
（以千为单位）
截至2024年9月30日，待售的业务资产和负债：
经销商和清算机构应收款项$138 
财产、设备和资本化软体的净值919 
无形资产（扣除净值）3,486 
其他资产94 
负债$(1,184)
RFQ-hub的总带值截至2024年9月30日：$3,453 

4. 每股盈利

以下表格包含了净利润前所得税和非控制权益调解至普通股股东可得净利润的过程:
 截至九月三十日止三个月，截至九月三十日止九个月
(以千计)2024202320242023
所得税前所得和非控制权益$147,160 $138,105 $442,365 $308,337 
所得税预约28,137 20,512 83,917 51,117 
净收入119,023 117,593 358,448 257,220 
非控制权益(59,071)(55,678)(176,093)(120,722)
普通股东可用的净收益$59,952 $61,915 $182,355 $136,498 
12


以下是基本和稀释每股盈利的计算：
 截至9月30日的三个月截至9月30日的九个月
（以千为单位，股份或每股数据除外）2024202320242023
基本每股收益:  
普通股股东可获得的净收入$59,952 $61,915 $182,355 $136,498 
少：分红派息及分配予参与证券的未分配收益(3,542)(3,111)(10,375)(6,964)
普通股股东可获净利润，除去分红和分配给优先证券的未分配收益56,410 58,804 171,980 129,534 
常股加权平均已发行股份数：
A类87,152,658 93,408,537 88,093,082 95,376,590 
基本每股盈利$0.65 $0.63 $1.95 $1.36 

 截至9月30日的三个月截至9月30日的九个月
（以千计，除股份或每股数据外）2024202320242023
稀释每股收益:  
普通股股东可取的净利润，扣除分红派息和分配给参与证券的未分配收益$56,410 $58,804 $171,980 $129,534 
常股加权平均已发行股份数：
A类
已发行和流通的87,152,658 93,408,537 88,093,082 95,376,590 
根据修订和更新的2015年管理激励计划发行的股份384,189 — 247,511 — 
87,536,847 93,408,537 88,340,593 95,376,590 
每股稀释收益（1）$0.64 $0.63 $1.95 $1.36 
（1）排除在每股稀释收益的计算中 68,988 和 34,622 截至2023年9月30日的三个月和九个月结束之日起，由于包括期权会使其稀释，未行使的股票期权均被排除。 无 截至2024年9月30日的三个月和九个月结束之日，排除了。
5. 税收应收协议

如欲深入讨论公司的税款应收协议，请参阅我们年终于2023年12月31日结束之年度报告第II部分第8项之基本报表中的附注4「税款应收协议」。

针对上述讨论的税收收回协议目的，公司实际节省的现金金额是通过比较公司的实际所得税负债与公司在购买或交换virtu金融单位的情况下，公司将需要支付的税款之间的差额来计算的。如果公司的资产未进行( i ) 不增加virtu金融的资产税基，( ii ) 没有获得虚拟金融无形资产税基的税收益，以及( iii ) 没有获得虚拟金融净营运亏损（“NOLs”）和其他税务属性税收益，公司将必须支付的税款。税收收回协议由于某些事件（例如，NOL的预期实现或税率变化的变化）而进行的后续调整，将在综合收益的财务缩表中的税前及非控制权益内得到承认。

公司从2017年2月至2024年9月支付总额$114.0 发票项款项预计在未来每年约为$0.1 1500 万美元22.0 百万之间。 15 年

截至2024年9月30日和2023年12月31日，公司与上述事项相关的尚未实现税收资产约为$119.6百万和$135.7百万美元，而根据税收可收回协议，在接下来的 15 年内，截至2024年9月30日和2023年12月31日，公司根据最佳估计额度记录的负债约为$196.3百万和$216.5百万美元。这些金额截至2024年9月30日和2023年12月31日，根据各自日期可用的最佳估计数据记录，但在公司提交该年度的美国联邦和州收入税申报后，金额可能会发生变化。

13

6. 商誉和无形资产

公司有 两个 营运部门包括：(i) 市场做市；以及 (ii) 执行服务；和 一年。 非营运部门：企业。截至2024年9月30日和2023年12月31日，公司记录的商誉总金额为$1,148.9 百万 没有 商誉减值发生于2024年9月30日和2023年的三个月和九个月结束时。

以下表格显示了截至2024年9月30日和2023年12月31日各区段的商誉详细资料：
（以千为单位）市场做市执行服务公司股份总计
期末账目余额$755,292 $393,634 $— $1,148,926 

如注释3「待售业务」所述，公司将一个总计净帐面金额为$3.5 百万（$7.5 百万的总帐面金额净额为$4.0 百万的累计摊销)，从无形资产重分类至待售业务的资产。

截至2024年9月30日和2023年12月31日，公司记录的无形资产总金额为$215.0 百万美元、百万元和美元257.5 百万美元。 收购的无形资产截至2024年9月30日和2023年12月31日如下：
 截至2024年9月30日
（以千为单位）总投资成本 累计摊销 净投资成本 有用寿命
（年）
客户关系$479,130 $(269,541)$209,589 10至12
科技136,000 (136,000)— 1至6
有利的租赁合同5,895 (5,636)259 3至15
交易所会员数3,998 — 3,998 无限期
商标3,600 (3,600)— 3
etf 发行人关系950 (950)— 9
etf 买家关系950 (950)— 9
其他$1,125 $— $1,125 无限期
 $631,648 $(416,677)$214,971 
截至2023年12月31日
（以千为单位）总摊销金额累积摊提净携带额有用寿命
（年）
客户关系$486,600 $(237,829)$248,771 10至12
科技136,000 (133,467)2,533 1至6
有利的租赁占用5,895 (5,177)718 3至15
交易所会员数3,998 — 3,998 无限期
商标3,600 (3,600)— 3
etf发行人关系950 (950)— 9
etf买家关系950 (950)— 9
其他$1,500 $— $1,500 无限期
$639,493 $(381,973)$257,520 
 
有限寿命无形资产相关的摊销费用分别为2024年和2023年9月30日结束的为$百万。此数字包括在附带的综合收益财务简明综合收益报告中已购买的无形资产和取得的资本化软体之摊销。11.8 百万美元、百万元和美元16.0 百万，而$38.7 百万美元、百万元和美元48.0 分别为截至2024年和2023年9月30日九个月的摊销费用数额为$百万。这包含在附带的综合收益财务简明综合收益报告中已购买的无形资产和取得的资本化软体之摊销。

14

公司预计在接下来的五年依下列方式记录摊销费用：

（以千为单位）
2024年剩余部分$11,783 
202547,132 
202647,132 
202747,132 
202847,132 
20299,466 

7. 与经销商和结算组织的应收款项/应付款项

以下是2024年9月30日和2023年12月31日经销商和结算商应收和应付款项的摘要：
（以千为单位）2024年9月30日2023年12月31日
资产
与主要经纪商应收款项$494,186 $208,639 
与交易组织的存款171,654 182,008 
与期货佣金商的净资产225,319 166,808 
与结算组织的未结交易7,517 1,096 
证券未能交付257,304 148,822 
佣金和费用38,213 30,351 
来自经销商和清算机构的应收款总额$1,194,193 $737,724 
负债
由于主经纪商$420,591 $780,310 
与期货佣金商的净资产（1）(13,066)(36,059)
与结算组织的未结业务56,718 313,875 
证券未能收到150,255 104,702 
佣金和费用5,142 4,884 
经销商和交易所给付的应付款总额$619,640 $1,167,712 
(1) 公司将其余额呈现在顾经销商信贷设施的所有未清基本余额，当符合抵销标准时，将其按对方净额进行呈报.

包括从「应收经销商」和「期货佣金商的净权益」中扣除的是公司所有主经销商信贷设施（详见注9「借款」）的未偿还本金余额，截至2024年9月30日和2023年12月31日分别约$百万美元。143.9 百万美元、百万元和美元175.3 信贷设施的贷款款项仅用于满足公司交易账户中持有的普通期货和其他交易项目所需的初始保证金要求，该交易账户由各金融机构之联属公司持有。这些信贷设施由公司的交易账户和存款账户与这些金融机构提供全额担保。与结算组织和其他经销商有关的「未交付的证券」和「未接收的证券」已包括在内。

8. Collateralized Transactions

The Company is permitted to sell or repledge securities received as collateral and use these securities to secure repurchase agreements, enter into securities lending transactions or deliver these securities to counterparties or clearing organizations to cover short positions. At September 30, 2024 and December 31, 2023, substantially all of the securities received as collateral have been repledged.

15

2024年9月30日和2023年12月31日抵押交易的公平价值摘要如下：
（以千为单位）2024年9月30日2023年12月31日
作为抵押品收到的证券:
借出证券$2,237,060 $1,665,860 
担保再购买的证券707,647 1,512,114 
 $2,944,707 $3,177,974 
在正常业务运作的过程中，公司与结算组织抵押合格证券，以满足每日保证金和结算基金要求。

2024年9月30日和2023年12月31日，拥有及抵押的金融工具中，对方有权重新抵押的情况如下：

（以千为单位）2024年9月30日2023年12月31日
股票$1,971,268 $1,222,559 
交易所交易票据19,425 8,300 
 $1,990,693 $1,230,859 

9. 借款

短期借款净额

以下总结了公司的短期借款余额，减去相关的债务发行成本，每一项都在以下更详细地描述。
2024年9月30日
（以千为单位）未偿还贷款推迟发行债务成本短期借款净额
经纪商信贷设施$110,000 $(813)$109,187 
短期银行贷款19,574 — 19,574 
$129,574 $(813)$128,761 
2023年12月31日
（以千为单位）未偿借款推迟债务发行成本短期借款净额
经纪商贷款设施$— $— $— 
$— $— $— 

证券经纪商信贷设施  

该公司是与金融机构签订 两个 的担保信贷协定，用于普通情况下购买美国券商市场做市活动中的隔夜证券头寸。 一 的资金（“非承诺授信额”）是根据非承诺方式提供，总借款额为$400百万，并以VAL在金融机构维持的交易和存款账户作为抵押。第二笔信贷设施（“承诺授信额”）与该金融机构一致，借款额为$650百万。承诺授信额包括 两个 借款基础：借款基金A用于买卖证券的融资；借款基金b用于在全国证券结算公司存入资金的基金。借款基金A贷款金额可达到$650 百万并按照调整后的隔夜拆款利率（SOFR）或基准利率加 1.25%计息。借款基金b的贷款金额限额为$300百万并按照调整后的SOFR或基准利率加 2.50%计息。对于该设施未使用的平均每日未使用部分，按年支付 0.50%的承诺费，按季度预付。

virtu金融新加坡私人有限公司与一家金融机构（“透支授信额度”）订立了一项循环信用贷款安排，提供短期融资来源。 该安排的总借款上限为$10 百万，并按照调整后的SOFR或基准利率加计利息 3.5%每年。

16

以下摘要了公司经纪商信贷设施的携带价值，扣除未摊销的发债成本（如适用）。这些余额已包含在简明综合财务状况表的短期借款中。

 在2024年9月30日
（以千为单位）利率提供融资未偿借款推迟债务发行成本净未偿还贷款
经纪商信贷配套:     
未承诺授信额度6.00%$400,000 $50,000 $(813)$49,187 
承诺授信额度（1）6.25%650,000 50,000 — 50,000 
透支额度8.35%10,000 10,000 — 10,000 
 $1,060,000 $110,000 $(813)$109,187 
（1）承诺授信额度下的Borrowing Base A Loan和Borrowing Base b Loan的利率分别为 6.252024年6月30日和2023年12月31日的时间点，公司从Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收购中记录的关于监管和产品开发里程碑的待定支付负债的公允价值总和为2.779亿和2.887亿美元。公司使用概率加权情境折现现金流模型评估预期的待定支付负债和相应的与监管和产品开发里程碑相关的负债的公允价值，该方法与预期待定支付负债的初始计量一致。每个潜在情境应用成功概率，然后通过现值因子计算折扣，得出相应的现值。时间的流逝以及草拟的里程碑实现时间，现值因子，实现度（如适用）和成功概率的变化可能导致公允价值测量的调整。与监管和产品开发里程碑相关的待定支付负债的公允价值是以2024年6月30日和2023年12月31日的加权平均成功概率和现值因子计算的，成功概率分别为%和%，现值因子分别为%和%。付款范围的预测财政年度范围为2025年至2031年。所使用的不可观察的输入值按待定支付负债的相对公允价值加权。 8.00％及％。截至2024年9月30日，Borrowing Base b Loan尚无未还余额。
 到2023年12月31日
（以千为单位）利率提供融资未偿借款推迟债务发行成本净债务总额
经纪业者信贷授信额：     
未承诺授信额（1）6.50%$400,000 $— $— $— 
承诺授信额6.75%650,000 — — — 
透支额度8.88%10,000 — — — 
 $1,060,000 $— $— $— 
(1) $2.3百万的透延债务发行成本已包括在资产负债表中的其他资产项目中。

以下是经纪商融资设施的利息开支摘要。利息开支包含在配套的综合损益表中的利息及分红派息开支内。

 截至9月30日的三个月截至9月30日的九个月
（以千为单位）2024202320242023
经纪商信贷机构：
非承诺授信$988 $1,829 $2,598 $5,377 
承诺授信952 23 2,745 23 
透支授信$146 62 324 272 
 $2,086 $1,914 $5,667 $5,672 

短期银行贷款

公司的国际证券清算及结算活动是通过营运现金或短期银行贷款，如透支设施形式进行资助。截至2024年9月30日，这些贷款项目中有 $19.6 百万的短期银行贷款 ，与这些设施下的国际结算活动相关，以约 5.2%的加权平均利率计算。截至2023年12月31日，与这些设施下的国际结算活动无关联的余额为零。未偿还的短期银行贷款余额列入损益表的短期借款内。

17

首席券商信贷设施

该公司与各大券商和其他金融机构签订了短期信贷协议，从中获得执行或结算服务。这些资金的收益用于满足公司在正常情况下交易的产品所需的保证金要求，借入的金额由公司与相应金融机构的交易账户作抵押。

 在2024年9月30日
（以千为单位）加权平均
利率		融资
可用的		借款
流通股本
券商信用设施：   
券商信用设施 (1)7.26%$633,736 $143,940 
 $633,736 $143,940 
 到2023年12月31日
（以千为单位）加权平均
利率		融资
可用的		借款
流通股本
券商信用设施：   
券商信用设施（1）7.96%$599,180 $175,256 
 $599,180 $175,256 
(1) 在财务状况摘要的缩表中，未偿款项已包含与经销商和交易结算机构有关的应收款项或应付款项。

有关融资的利息费用为$。2.4 百万。 和 $3.3 百万。 截至三个月结束为止， 分别于2024年9月30日及2023年，为$。7.4 百万美元、百万元和美元10.4 百万。

长期借款

以下总结了公司的长期借款，扣除未摊销折扣和债券发行成本，如适用：

  在2024年9月30日
（以千为单位）到期日
日期		利息
利率		未偿本金折扣推迟债务发行成本净未偿还贷款
长期借款：      
　第一抵押顺位b-1贷款设施2031年6月7.60%$1,245,000 $(2,988)$(15,835)$1,226,177 
　优先担保第一抵押票据2031年6月7.50%500,000 — (9,001)490,999 
　SBI债券2026年1月5.00%24,367 — — 24,367 
 $1,769,367 $(2,988)$(24,836)$1,741,543 
  到2023年12月31日
（以千为单位）到期日
日期		利息
利率		未偿本金折扣推迟债务发行成本净未偿还贷款
长期借款：      
　　首顺位定期贷款方案2029年1月8.46%$1,727,000 $(3,107)$(21,504)$1,702,389 
　　SBI债券2026年1月5.00%24,816 — — 24,816 
$1,751,816 $(3,107)$(21,504)$1,727,205 
18


信贷协议

2022年1月13日（「信贷协议终止日期」），virtu金融及其子公司之一特许公司VFH母公司LLC，与该等出借方、摩根大通银行NA作为行政代理及摩根大通银行NA、高盛银行美国、RBC资本市场、barclays bank plc、Jefferies Finance LLC、BMO资本市场corp及加拿大帝国商业银行世界市场公司，作为联合牵头安排人及牙书管理人签订信用协议（「信贷协议」）。信贷协议提供（i）总金额为一亿美元的优先担保头寸长期贷款，在信贷协议签订当天全部提取，其所得用于VFH偿还先前信贷协议下的所有未偿余额，支付相应费用和费用，进行公司的回购计划下的股份回购，以及用于一般公司用途；及（ii）向VFH提供一亿美元的优先担保头寸循环融资设施，包括一亿美元的保函分项设施及一亿美元的搭便车分项设施。 本金 百万美元1,800.0百万美元250.0百万美元20.0百万美元20.0百万美元

信贷协议下的定期贷款及循环贷款利率，由公司选择时，按年利率计算，为以下中最高者：(a) 当时实施的主要利率；(b) 包括联邦基金效率利率和隔夜银行资金利率中较高者, 每项加上 0.50%，(c) 利率周期为一个月的调整后定期SOFR利率加上 1.00%，以及(d)(1) 定期贷款的情况下， 1.50%，(2) 循环贷款的情况下， 1.00%，再加上，(x) 定期贷款的情况下， 2.00%，以及(y) 循环贷款的情况下， 1.50%，或(ii) 利率周期中的调整后定期SOFR利率和(1) 定期贷款的情况下， 0.50%，(2) 循环贷款的情况下， 0.00%，以及，在长期贷款借款案例中， 3.00%和，在循环贷款借款案例中， 2.50%。此外，承诺费按照 0.50%的年利率计算，根据VFH的首抵债务杠杆比，平均每天未使用的循环融资金额，逐步降至每年 0.3752024年6月30日和2023年12月31日的时间点，公司从Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收购中记录的关于监管和产品开发里程碑的待定支付负债的公允价值总和为2.779亿和2.887亿美元。公司使用概率加权情境折现现金流模型评估预期的待定支付负债和相应的与监管和产品开发里程碑相关的负债的公允价值，该方法与预期待定支付负债的初始计量一致。每个潜在情境应用成功概率，然后通过现值因子计算折扣，得出相应的现值。时间的流逝以及草拟的里程碑实现时间，现值因子，实现度（如适用）和成功概率的变化可能导致公允价值测量的调整。与监管和产品开发里程碑相关的待定支付负债的公允价值是以2024年6月30日和2023年12月31日的加权平均成功概率和现值因子计算的，成功概率分别为%和%，现值因子分别为%和%。付款范围的预测财政年度范围为2025年至2031年。所使用的不可观察的输入值按待定支付负债的相对公允价值加权。 0.25%的利率，并且按季度预先支付。

信贷协议下的循环设施受春季净首次留置杠杆比率测试的约束，如果总循环承诺的使用超过特定日期的指定水平，则该测试可能于财政季度的最后一天生效。 VFH 也受到根据过剩现金流和其他特定触发事件进行的有条件本金预付的约束。信贷协议下的借款由virtu金融和VFH的重要非受监管国内受限附属公司担保，并由VFH和保证人的几乎所有资产作为担保，但是在某些情况下有例外。

信贷协议包含某些惯例保证和触发事件，包括与控制权变更相关的事宜。如果触发了且持续发生了触发事件，信贷协议下的贷款人将有权采取各种行动，包括加速信贷协议下尚未支付款项的偿还，以及所有担保债务下的抵押品担保债务人允许采取的行动。

该笔贷款分期摊还，每年还款金额相当于原始聚合本金额的百分比。 1.0％的定期贷款原始总本金金额，公司于18.02023年1月13日偿还了55.0500万美元。 2023年12月12日，公司进行了自愿性预付，支付金额为

2019年10月，公司著手进行一笔浮动至固定利率掉期协议。 在公司完成3.5亿美元的资本投资并新增维持5年的全职职位的条件下，可额外获得1850万美元可退还税款。 $525.0百万浮动至固定利率期货交换协议。2020年1月，公司亦展开一笔 五年 $1,000.0 百万浮动至固定利率期货交换协议。这些 两个 利率期货符合在2020年第一季度根据ASC 815标准条件被视为符合资金流量避险的标准，有效地固定了对525.0百万和$1,000 百万元本金根据收购头顺先期贷款资金设施的利率是 4.32024年6月30日和2023年12月31日的时间点，公司从Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收购中记录的关于监管和产品开发里程碑的待定支付负债的公允价值总和为2.779亿和2.887亿美元。公司使用概率加权情境折现现金流模型评估预期的待定支付负债和相应的与监管和产品开发里程碑相关的负债的公允价值，该方法与预期待定支付负债的初始计量一致。每个潜在情境应用成功概率，然后通过现值因子计算折扣，得出相应的现值。时间的流逝以及草拟的里程碑实现时间，现值因子，实现度（如适用）和成功概率的变化可能导致公允价值测量的调整。与监管和产品开发里程碑相关的待定支付负债的公允价值是以2024年6月30日和2023年12月31日的加权平均成功概率和现值因子计算的，成功概率分别为%和%，现值因子分别为%和%。付款范围的预测财政年度范围为2025年至2031年。所使用的不可观察的输入值按待定支付负债的相对公允价值加权。 4.4在2024年9月和2025年1月，分别根据收购信用协议中规定的利率为 4.5%，与较早到期的掉期安排有关，以及 4.6%，与较晚到期的掉期安排有关。 有效固定利息支付义务仍然为 4.5%，与较早到期的掉期安排有关，以及 4.6%，与较晚到期的掉期安排有关。

2023年12月，公司终止了 两个 利率互换安排，并从交易对手那里获得了$55.8 百万美元的收益。因此，公司取消了ASC 815下的现金流量避险，并且与终止互换相关的AOCI金额通过利息费用进行摊销。公司同时与同一交易对手签订了 两年锁定期 $1,525.0 百万美元的浮动转固定利率互换协议（“2023年12月互换”）。2023年12月互换符合被视为符合资金流量避险的标准，并被指定为
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截至2023年12月的ASC 815，已有效地将第一顺位条款贷款设施下$的利息支付义务固定。1,525.0利率期货设在2025年11月前，基于信用协议中规定的利率，对第一顺位条款贷款设施下的$本金进行固定。 7.5%，根据信贷协议中订定的利率。

2024年6月21日（“修订生效日”），公司签署了《授信协议一号修订案》（“修订授信协议”），并完成了债券的发行（如下定义）。根据修订授信协议，发行了总额为$1,245.0 百万美元的到期日期为2031年的优先担保第一顺位长期b-1贷款（“新长期贷款”），其筹集所得与债券的筹集所得一道，全额偿还了授信协议先前未偿还的所有长期贷款。此外，修订授信协议还将其优先担保第一顺位循环信用设施从$250.0 1500 万美元300.0 百万美元提高，并将其到期日延长至修订生效日后的三年。

新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 0.50新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 1.00新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 1.00新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 1.75新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 0新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 2.75新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。 1.0新的定期贷款将根据公司的选择支付利息，可以是：(i) 最大值为(a) 当前的基准利率，(b) 诸如联邦基金利率和隔夜银行资金利率中的较大者再加上百分之，(c) 一个月期间的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在当前期限的SORF利率和百分之中的较大者再加上百分之。新的定期贷款将在修订生效日期的第七个周年到期，并将按照新的定期贷款原始总本金金额的百分之进行年度分期摊还。新的定期贷款还受到根据超额现金流和某些其他触发事件的有条件本金支付的影响。

截至2024年9月30日，应付债务 仍有未偿还，截至2024年9月30日止三个月及九个月， 资本化的利息费用为$。1,245.0 在长期贷款下，尚有零百万未偿还。 无 在第一顺位循环授信设施下，尚有数目未清偿。

由于公司进入修订信贷协议并伴随贷款余额减少，公司部分终止了2023年12月掉期，并将其名义金额从$转变为1,525.0$百万1,075.0万美元，并从交易对手处获得了$万美元的款项。现金流量避险根据ASC 815于2024年6月21日比例递改。由于部分递改，我们在其他收入中承认了$万美元的收益。2.0这个利率期货有效地固定了新期贷款本金$万美元的利息支付义务，根据修订信贷协议中规定的利率，直至2025年11月过渡。5.7进入修订信贷协议并伴随贷款余额减少，公司部分终止了2023年12月掉期，并将其名义金额从$转变为1,075.0万美元，并从交易对手处获得了$万美元的款项。现金流量避险根据ASC 815于2024年6月21日比例递改。由于部分递改，我们在其他收入中承认了$万美元的收益。 7.17这个利率期货有效地固定了新期贷款本金$万美元的利息支付义务，根据修订信贷协议中规定的利率，直至2025年11月过渡。

优先受保护第一顺位抵押票据

2024年6月21日，VFH和Virtu金融的子公司Valor Co-Issuer, Inc.（以下简称“联合发行人”）完成了发行总额为$的优先担保首次典权到期日为2031年的票据（以下简称“票据”）交易。500.0 百万的总本金 7.50票据根据一份日期为2024年6月21日的信托契约（以下简称“契约”）发行，参与方包括VFH、联合发行人、Virtu金融以及作为受托人和抵押品代理的美国银行信托公司国家协会。票据于2031年6月15日到期。票据的利息每年按%年息计息，于每年6月15日和12月15日计付，自2024年12月15日起开始计付。我们将VFH和联合发行人合称为“发行人”. 7.50每6个月支付利率为%，至2031年6月15日到期。我们将VFH和联合发行人共同称为“发行人”。

有关备忘录及相关担保得到第一优先完善的留置权，担保对发行人和担保人现有和未来的资产，受到特定例外条件的限制，包括所有重要的动产，设立抵押权的
发行人、担保人（除virtu金融以外）及发行人和担保人的直接子公司的资本股份， 100非表决权资本股的百分比和最多 65.0任何现在或以后由发行人或任何担保人直接拥有的外国子公司的表决权资本股的百分比，这些资产也是提供担保的
按照修订后的信贷协议，优先地履行义务。

债券契约对我们的某些能力施加了限制：(i)承担或担保额外的负债或发行优先股；(ii)支付分红、进行某些投资以及还偿 Notes 优先于债券的次贷款或进行其他“受限制的支付”；(iii)设立抵押权以抵押资产以保障债务；(iv)与联属公司进行交易；(v)与另一家公司合并、合并或合并；(vi)转让和卖出资产；及 (vii)允许对 virtu金融 子公司支付股息的限制。债券契约还包含惯例性违约事件，包括但不限于，与 Notes 偿还本金或利息未付款违约、承诺违约、最终到期违约或对重大债务进行交叉加速的违约以及某些破产事件。

在2027年6月15日前，我们可能按照赎回价格赎回一部分或全部票据。 100等于本金加上应计未付利息的％，（但不包括）赎回日期之前的利息，再加上适用的“弥补”溢价。

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在2027年6月15日之前，我们也可以按照某些股本发行的净现金收益赎回多达 40％的票面总额，赎回价为其票面金额的％，加上截至（但不包括）赎回日的应计但未支付利息。 107.500％的票面金额，加上应计但未支付的利息（如有），以及特定股本发行的净现金收益。

在2027年6月15日之前，我们也可能在往后每个连续的十二个月期间内，从2024年6月21日之后开始，赎回甚至更多 10备注的总原始本金金额的百分之 103的备注本金金额，加上截至赎回日期前尚未支付的应计利息。

在2027年6月15日或之后，我们可能以以下赎回价格（表达为本金金额的百分比），再加上到赎回日期之前（不包括该日期）的应计及未支付利息，赎回部分或全部票据，如果在下列所示年份的6月15日起为期12个月的期间内赎回：

周期百分比
2027103.750%
2028101.875%
2029年及之后
100.000%

根据债券契约中所定义的特定控制变更事件发生时，我们必须提供购回票据的机会， 101其价格为本金金额的％，加上应计及未支付的利息（如有），至（但不包括）购买日期。

SBI债券

2016年7月25日，virtu金融发行了总面值为¥ 日币债券（统称为“SBI债券”），3.5 KRW _____十亿，折合___百万美元33.1 发行日期）发行给SBI人寿保险有限公司和SBI保险有限公司。SBI债券的款项用于部分资助对Japannext Co., Ltd.的投资（如附注10“财务资产和负债”中所述）。SBI债券由virtu金融提供担保。SBI债券受日币汇率与公司报告货币（美元）之间波动的影响，这些变化在综合损益表的其他项目中反映。到2022年12月，SBI债券的到期日延长至2026年。截至2024年9月30日，本金余额为¥ 日币3.5 十亿美元（$24.4 百万），截至2023年12月31日，本金余额为¥3.5 十亿美元（$24.8 百万）。公司亏损2.6 百万和收益$0.8 分别为2024年和2023年截至9月30日的三个月中分别为损失 金额为各$百万，由于外汇率的变动而获得了$0.4 百万和收益$3.3 在2024年和2023年截至9月30日的九个月中分别为损失 金额为各$百万，由于外汇汇率的变动而获得了$

As of September 30, 2024, aggregate future required minimum principal payments based on the terms of the long-term borrowings were as follows:

(in thousands)September 30, 2024
Remainder of 2024$— 
202512,450 
202636,817 
202712,450 
202812,450 
202912,450 
Thereafter1,682,750 
Total principal of long-term borrowings$1,769,367 

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10. Financial Assets and Liabilities

Financial Instruments Measured at Fair Value

The fair value of equities, options, on-the-run U.S. government obligations, exchange traded notes and digital assets is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities and certain other financial instruments, which are categorized as Level 2. The Company’s corporate bonds, derivative contracts, other U.S. and non-U.S. government obligations and receivables and payables linked to digital assets have been categorized as Level 2. Fair value of the Company’s derivative contracts is based on the indicative prices obtained from a number of banks and broker-dealers, as well as management’s own analyses. The indicative prices have been independently validated through the Company’s risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange.

The Company prices certain financial instruments held for trading at fair value based on theoretical prices, which can differ from quoted market prices. The theoretical prices reflect price adjustments primarily caused by the fact that the Company continuously prices its financial instruments based on all available information. This information includes prices for identical and near-identical positions, as well as the prices for securities underlying the Company’s positions, on other exchanges that are open after the exchange on which the financial instruments is traded closes. The Company validates that all price adjustments can be substantiated with market inputs and checks the theoretical prices independently. Consequently, such financial instruments are classified as Level 2.

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Fair value measurements for those items measured on a recurring basis are summarized below as of September 30, 2024:
 September 30, 2024
(in thousands)Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value 
Assets     
Financial instruments owned, at fair value:     
Equity securities$695,906 $2,442,153 $— $— $3,138,059 
U.S. and Non-U.S. government obligations280,885 592,073 — — 872,958 
Corporate Bonds— 1,149,762 — — 1,149,762 
Exchange traded notes283 28,612 — — 28,895 
Currency forwards— 274,749 — (272,359)2,390 
Options3,270 — — — 3,270 
 $980,344 $4,487,349 $— $(272,359)$5,195,334 
Financial instruments owned, pledged as collateral:
Equity securities$1,391,264 $580,004 $— $— $1,971,268 
Exchange traded notes— 19,425 — — 19,425 
 $1,391,264 $599,429 $— $— $1,990,693 
Other Assets
Equity investment$— $— $87,598 $— $87,598 
Digital assets14,591 — — 14,591 
Exchange stock2,973 — — — 2,973 
 $17,564 $— $87,598 $— $105,162 
Receivables from broker dealers and clearing organizations:
Receivables linked to digital assets41,837 41,837 
$— $41,837 $— $— $41,837 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$2,122,768 $1,787,219 $— $— $3,909,987 
U.S. and Non-U.S. government obligations167,010 942,321 — — 1,109,331 
Corporate Bonds— 1,280,241 — — 1,280,241 
Exchange traded notes1,345 30,518 — — 31,863 
Currency forwards— 312,940 — (312,940)— 
Options3,749 — — — 3,749 
 $2,294,872 $4,353,239 $— $(312,940)$6,335,171 
Payables to broker dealers and clearing organizations:
Interest rate swap$— $7,410 $— $— $7,410 
Payables linked to digital assets— 80,908 — — 80,908 
$— $88,318 $— $— $88,318 
    

23

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2023:

 December 31, 2023
(in thousands)Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value 
Assets     
Financial instruments owned, at fair value:     
Equity securities$710,699 $1,844,106 $— $— $2,554,805 
U.S. and Non-U.S. government obligations521,542 1,775,177 — — 2,296,719 
Corporate Bonds— 1,232,097 — — 1,232,097 
Exchange traded notes10 18,055 — — 18,065 
Currency forwards— 377,279 — (354,698)22,581 
Options3,485 — — — 3,485 
$1,235,736 $5,246,714 $— $(354,698)$6,127,752 
Financial instruments owned, pledged as collateral:
Equity securities$871,237 $351,322 $— $— $1,222,559 
Exchange traded notes3 8,297 — — 8,300 
$871,240 $359,619 $— $— $1,230,859 
Other Assets
Equity investment$— $— $81,805 $— $81,805 
Exchange stock2,716 — — — 2,716 
$2,716 $— $81,805 $— $84,521 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$1,447,726 $1,165,091 $— $— $2,612,817 
U.S. and Non-U.S. government obligations181,393 1,891,556 — — 2,072,949 
Corporate Bonds— 1,358,522 — — 1,358,522 
Exchange traded notes— 21,104 — — 21,104 
Currency forwards— 339,085 (336,311)2,774 
Options3,186 — 3,186 
 $1,632,305 $4,775,358 $— $(336,311)$6,071,352 
Payables to broker dealers and clearing organizations:
Interest rate swap$— $7,661 $— $— $7,661 
$— $7,661 $— $— $7,661 

JNX Investment

The Company has a minority investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), formerly known as SBI Japannext Co., Ltd., a proprietary trading system based in Tokyo. In connection with the JNX Investment, the Company issued the SBI Bonds (as described in Note 9 “Borrowings”) and used the proceeds to partially finance the transaction. The JNX Investment is included within Level 3 of the fair value hierarchy. As of September 30, 2024 and December 31, 2023, the fair value of the JNX Investment was determined using a weighted average of valuations using 1) the discounted cash flow method, an income approach; 2) a market approach based on average enterprise value/EBITDA ratios of comparable companies; and to a lesser extent 3) a transaction approach based on transaction values of comparable companies. The fair value measurement is highly sensitive to significant changes in the unobservable inputs, and significant increases (decreases) in discount rate or decreases (increases) in enterprise value/EBITDA multiples would result in a significantly lower (higher) fair value measurement.

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The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment:

September 30, 2024
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$87,598 Discounted cash flowEstimated revenue growth
5.0% - 6.4%
5.3 %
Discount rate
15.8% - 15.8%
15.8 %
MarketFuture enterprise value/ EBIDTA ratio
6.9x - 16.7x
13.8x

December 31, 2023
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$81,805 Discounted cash flowEstimated revenue growth
5.0% - 6.8%
5.8 %
Discount rate
15.6% - 15.6%
15.6 %
MarketFuture enterprise value/ EBIDTA ratio
8.7x - 17.8x
12.9x

Changes in the fair value of the JNX Investment are included within Other, net in the Consolidated Statements of Comprehensive Income.

The following presents the changes in the Company's Level 3 financial instruments measured at fair value on a recurring basis:
Three Months Ended September 30, 2024
(in thousands)Balance at June 30, 2024PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at September 30, 2024Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2024
Assets
Other assets:
Equity investment$79,031 $— $8,567 $— $— $87,598 $8,567 
Other— — — — — 
Total$79,031 $— $8,567 $— $— $87,598 $8,567 
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
Three Months Ended September 30, 2023
(in thousands)Balance at June 30, 2023PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at September 30, 2023Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2023
Assets
Other assets:
Equity investment$71,059 $— $1,340 $— $— $72,399 $1,340 
Other— — — — — — — 
Total$71,059 $— $1,340 $— $— $72,399 $1,340 
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
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Nine Months Ended September 30, 2024
(in thousands)Balance at December 31, 2023PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at September 30, 2024Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2024
Assets
Other assets:
Equity investment$81,805 $— $5,793 $— $— $87,598 $5,793 
Total$81,805 $— $5,793 $— $— $87,598 $5,793 
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
Nine Months Ended September 30, 2023
(in thousands)Balance at December 31, 2022PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at September 30, 2023Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2023
Assets
Other assets:
Equity investment$76,613 $— $(4,214)$— $— $72,399 $(4,214)
Total$76,613 $— $(4,214)$— $— $72,399 $(4,214)
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.

Financial Instruments Not Measured at Fair Value

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Condensed Consolidated Statements of Financial Condition. The table below excludes non-financial assets and liabilities. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets. The fair value of the Company’s long-term borrowings is based on quoted prices from the market for similar instruments, and is categorized as Level 2 in the fair value hierarchy.

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The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of September 30, 2024:
 September 30, 2024
 Carrying Value Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
 (in thousands)
Fair Value(Level 1) (Level 2) (Level 3) 
Assets     
Cash and cash equivalents$701,405 $701,405 $701,405 $— $— 
Cash restricted or segregated under regulations and other36,823 36,823 36,823 — — 
Securities borrowed2,301,690 2,301,690 — 2,301,690 — 
Securities purchased under agreements to resell708,773 708,773 — 708,773 — 
Receivables from broker-dealers and clearing organizations1,152,356 1,152,356 — 1,152,356 — 
Receivables from customers169,565 169,565 — 169,565 — 
Other assets (1)32,114 32,114 10,273 21,841 — 
Total Assets$5,102,726 $5,102,726 $748,501 $4,354,225 $— 
Liabilities
Short-term borrowings$128,761 $129,574 $— $129,574 $— 
Long-term borrowings1,741,543 1,797,607 — 1,797,607 — 
Securities loaned2,109,164 2,109,164 — 2,109,164 — 
Securities sold under agreements to repurchase1,045,811 1,045,811 — 1,045,811 — 
Payables to broker-dealers and clearing organizations531,322 531,322 — 531,322 — 
Payables to customers97,774 97,774 — 97,774 — 
Other liabilities (2)34,679 34,679 — 34,679 — 
Total Liabilities$5,689,054 $5,745,931 $— $5,745,931 $— 
(1) Includes cash collateral and deposits, and interest and dividends receivables.
(2) Includes deposits, interest and dividends payable.
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The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2023:
 December 31, 2023
 Carrying Value Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
 (in thousands)
Fair Value(Level 1) (Level 2) (Level 3) 
Assets     
Cash and cash equivalents$820,436 $820,436 $820,436 $— $— 
Cash restricted or segregated under regulations and other35,024 35,024 35,024 — — 
Securities borrowed1,722,440 1,722,440 — 1,722,440 — 
Securities purchased under agreements to resell1,512,114 1,512,114 — 1,512,114 — 
Receivables from broker-dealers and clearing organizations737,724 737,724 — 737,724 — 
Receivables from customers106,245 106,245 — 106,245 — 
Other assets (1)31,022 31,022 10,444 20,578 — 
Total Assets$4,965,005 $4,965,005 $865,904 $4,099,101 $— 
Liabilities
Short-term borrowings$— $— $— $— $— 
Long-term borrowings1,727,205 1,758,292 — 1,758,292 — 
Securities loaned1,329,446 1,329,446 — 1,329,446 — 
Securities sold under agreements to repurchase1,795,994 1,795,994 — 1,795,994 — 
Payables to broker-dealers and clearing organizations1,160,051 1,160,051 — 1,160,051 — 
Payables to customers23,229 23,229 — 23,229 — 
Other liabilities (2)19,300 19,300 — 19,300 — 
Total Liabilities$6,055,225 $6,086,312 $— $6,086,312 $— 
(1) Includes cash collateral and deposits, and interest and dividends receivables.
(2) Includes deposits, interest and dividends payable.

Offsetting of Financial Assets and Liabilities

The Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the Condensed Consolidated Statements of Financial Condition. In the tables below, the amounts of financial instruments owned that are not offset in the Condensed Consolidated Statements of Financial Condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments.

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The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of September 30, 2024 and December 31, 2023:

 September 30, 2024
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Assets Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition 
 
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Assets:                        
Securities borrowed$2,301,690 $— $2,301,690 $(2,237,060)$(27,995)$36,635 
Securities purchased under agreements to resell708,773 — 708,773 (707,647)1,126 
Receivables from broker-dealers and clearing organizations:
Trading assets, at fair value:
Currency forwards274,749 (272,359)2,390 — — 2,390 
Options3,270 — 3,270 — (3,270)— 
Total$3,288,482 $(272,359)$3,016,123 $(2,944,707)$(31,265)$40,151 
 Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Liabilities Presented in the Consolidated Statement of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition 
  
(in thousands)
Financial Instrument Collateral
Counterparty Netting/ Cash CollateralNet Amount 
Offsetting of Financial Liabilities:                     
Securities loaned$2,109,164 $— $2,109,164 $(2,075,751)$(27,995)$5,418 
Securities sold under agreements to repurchase1,045,811 — 1,045,811 (1,044,546)1,265 
Payable to broker-dealers and clearing organizations:
Interest rate swaps7,410 — 7,410 — — 7,410 
Trading liabilities, at fair value:
Currency forwards312,940 (312,940)— — — — 
Options3,749 — 3,749 — (3,682)67 
Total$3,479,074 $(312,940)$3,166,134 $(3,120,297)$(31,677)$14,160 

 December 31, 2023
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Assets Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition
 
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Assets:                        
Securities borrowed$1,722,440 $— $1,722,440 $(1,665,860)$(27,538)$29,042 
Securities purchased under agreements to resell1,512,114 — 1,512,114 (1,512,114)— 
Trading assets, at fair value:
Currency forwards377,279 (354,698)22,581 — — 22,581 
Options3,485 — 3,485 — (2,914)571 
Total$3,615,318 $(354,698)$3,260,620 $(3,177,974)$(30,452)$52,194 

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Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Liabilities Presented in the Consolidated Statement of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Liabilities:                     
Securities loaned$1,329,446 $— $1,329,446 $(1,291,376)$(31,509)$6,561 
Securities sold under agreements to repurchase1,795,994 — 1,795,994 (1,795,994)— 
Payables to broker-dealers and clearing organizations:
Interest rate swaps7,661 — 7,661 — — 7,661 
Trading liabilities, at fair value:
Currency forwards339,085 (336,311)2,774 — — 2,774 
Options3,186 — 3,186 — (2,914)272 
Total$3,475,372 $(336,311)$3,139,061 $(3,087,370)$(34,423)$17,268 
The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged as of September 30, 2024 and December 31, 2023:

 September 30, 2024
Remaining Contractual Maturity
(in thousands)Overnight and ContinuousLess than 30 days30 - 60
days		61 - 90
Days		Greater than 90
days		Total
Securities sold under agreements to repurchase:
Equity securities$50,000 $90,000 $185,000 $75,000 $— $400,000 
U.S. and Non-U.S. government obligations645,811 — — — — 645,811 
Total$695,811 $90,000 $185,000 $75,000 $— $1,045,811 
Securities loaned:
Equity securities$2,109,164 $— $— $— $— $2,109,164 
Total$2,109,164 $— $— $— $— $2,109,164 

 December 31, 2023
 Remaining Contractual Maturity
(in thousands)Overnight and ContinuousLess than 30 days30 - 60
days		61 - 90
Days		Greater than 90
days		Total
Securities sold under agreements to repurchase:     
Equity securities$— $140,000 $185,000 $75,000 $— $400,000 
U.S. and Non-U.S. government obligations1,395,994 — — — — 1,395,994 
Total$1,395,994 $140,000 $185,000 $75,000 $— $1,795,994 
Securities loaned:
Equity securities1,329,446 — — — — 1,329,446 
Total$1,329,446 $— $— $— $— $1,329,446 

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11. Derivative Instruments

The fair value of the Company’s derivative instruments on a gross basis consisted of the following at September 30, 2024 and December 31, 2023:

(in thousands) September 30, 2024December 31, 2023
Derivatives AssetsFinancial Statement LocationFair ValueNotionalFair ValueNotional
Derivative instruments not designated as hedging instruments:    
Equities futuresReceivables from broker-dealers and clearing organizations$9,513 $2,298,325 $(741)$1,944,872 
Commodity futuresReceivables from broker-dealers and clearing organizations5,640 6,103,880 (7,017)6,489,328 
Currency futuresReceivables from broker-dealers and clearing organizations659 2,648,074 707 6,964,937 
Fixed income futuresReceivables from broker-dealers and clearing organizations107 115,878 1 5,989 
OptionsFinancial instruments owned3,270 969,057 3,485 1,167,643 
Currency forwardsFinancial instruments owned274,749 36,748,890 377,279 33,579,641 
Derivatives LiabilitiesFinancial Statement LocationFair ValueNotionalFair ValueNotional
Derivative instruments not designated as hedging instruments:    
Equities futuresPayables to broker-dealers and clearing organizations$(1,420)$707,069 $(558)$501,978 
Commodity futuresPayables to broker-dealers and clearing organizations(1,419)70,979 (4)25,462 
Currency futuresPayables to broker-dealers and clearing organizations(520)310,660 12,031 1,518,087 
Fixed income futuresPayables to broker-dealers and clearing organizations(81)25,069 165 82,044 
OptionsFinancial instruments sold, not yet purchased3,749 984,618 3,186 1,173,351 
Currency forwardsFinancial instruments sold, not yet purchased312,940 36,767,985 339,085 33,560,544 
Derivative instruments designated as hedging instruments:
Interest rate swapsPayables to broker-dealers and clearing organizations7,410 1,075,000 7,661 1,525,000 

Amounts included in receivables from and payables to broker-dealers and clearing organizations represent net variation margin on long and short futures contracts as well as amounts receivable or payable on interest rate swaps.

The following table summarizes the net gain (loss) from derivative instruments not designated as hedging instruments under ASC 815, which are recorded in total revenues, and from those designated as hedging instruments under ASC 815, which are initially recorded in other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023.
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  Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)Financial Statements Location2024202320242023
Derivative instruments not designated as hedging instruments:  
FuturesTrading income, net$170,492 $84,911 $198,194 $204,928 
Currency forwardsTrading income, net(145,529)(45,165)(144,070)(91,352)
OptionsTrading income, net8,894 5,737 42,212 6,882 
Interest rate swap on term loan (1)Other, net— (474)5,686 (1,406)
Terminated interest rate swaps (2)Financing interest expense on long-term borrowings(9,841)— (32,923)— 
$24,016 $45,009 $69,099 $119,052 
Derivative instruments designated as hedging instruments:
Interest rate swaps (1)Other comprehensive income$(12,918)$(8,859)$607 $(14,738)
$(12,918)$(8,859)$607 $(14,738)
(1) The Company entered into a two-year $1,525 million floating-to-fixed interest rate agreement in December 2023 (the “December 2023 Swap”). The two-year interest rate swap met the criteria to be considered as a qualifying cash flow hedge under ASC 815 as of December 2023, and the mark-to-market gains (losses) on the instrument was deferred within Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income. In June 2024, the Company partially terminated and dedesignated a portion of our ongoing December 2023 Swap to an updated notional of $1,075 million, and recorded a gain of $5.7 million in Other, net. See Note 9 “Borrowings” for further details.
(2) The Company records the amortization of AOCI balances related to its previously terminated interest rate swaps in Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. See Note 9 “Borrowings” for further details on the terminated swaps.

12. Variable Interest Entities
A variable interest entity (“VIE”) is an entity that lacks one or more of the following characteristics: (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity.

The Company will be considered to have a controlling financial interest and will consolidate a VIE if it has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company has an interest in a joint venture (“JV”) that builds and maintains communication networks and related assets globally. The Company and its JV partners each pay monthly fees for the use of the communication networks in connection with their respective trading activities, and the JV may sell excess bandwidth that is not utilized by the JV members to third parties. As of September 30, 2024, the Company held a noncontrolling interest of 50.0% in the JV.

The Company previously held a noncontrolling interest of 12.5% in another JV that also builds and maintains communication networks and related assets and followed a similar fee arrangement. As of September 1, 2024, the Company had disposed of its interest in this JV.

The Company has an interest in a JV that offers derivatives trading technology and execution services to broker-dealers, professional traders and select hedge funds. As of September 30, 2024, the Company held approximately a 9.8% noncontrolling interest in this JV.

The Company has an interest in a JV that operates a member-owned equities exchange with the goal of increasing competition and transparency, while reducing fixed costs and simplifying execution of equity trading in the U.S. As of September 30, 2024, the Company held approximately a 13.5% noncontrolling interest in this JV.

The Company has an interest in a JV that was formed for the purpose of developing and operating a cryptocurrency trading platform with the goal of increasing competition and transparency, while improving trading performance and reducing operational risk. As of September 30, 2024, the Company held approximately a 6.9% noncontrolling interest in this JV.

The Company's JVs noted above meet the criteria to be considered VIEs, which it does not consolidate. The Company records its interest in the JVs under the equity method of accounting and records its investment in the JVs within Other assets and its amounts payable for communication services provided by the telecommunication JVs within Accounts payable, accrued
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expenses and other liabilities on the Statements of Financial Condition as applicable. The Company records its pro-rata share of each JV's earnings or losses within Other, net and fees related to the use of communication services provided by the JVs within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income.

The Company’s exposure to the obligations of these VIEs is generally limited to its interests in each respective JV, which is the carrying value of the equity investment in each JV.

The following table presents the Company’s nonconsolidated VIEs at September 30, 2024:

 Carrying AmountMaximum Exposure to LossVIEs' assets
(in thousands)AssetLiability
Equity investment$66,772 $— $66,772 $315,845 

The following table presents the Company’s nonconsolidated VIEs at December 31, 2023: 

Carrying AmountMaximum Exposure to LossVIEs' assets
(in thousands)AssetLiability
Equity investment$59,713 $— $59,713 $273,905 

The Company formed a JV to support the growth and expansion of a multi-asset request-for-quote communication platform in 2022. As of September 30, 2024, the Company held a 51% controlling interest in this entity. This JV meets the criteria to be considered a VIE, and based on the standard for control set forth above, the Company consolidates this entity and records the interest that the Company does not own as noncontrolling interest in the Condensed Consolidated Financial Statements.

On April 19, 2024, the Company entered into an agreement to sell a 49% interest in the multi-asset request-for-quote communication platform JV. The sale is subject to various closing conditions including the receipt of certain regulatory approvals. Upon the closing of the sale, the Company will retain a minority stake in the JV. See Note 3 “Business Held for Sale” for further details.


13. Revenues from Contracts with Customers

For more information on revenue recognition and the nature of services provided, see Note 2 "Summary of Significant Accounting Policies" and Note 12 "Revenues from Contracts with Customers" to the Consolidated Financial Statements of the Company's 2023 Annual Report on Form 10-K.

Disaggregation of Revenues

The following tables present the Company’s revenue from contracts with customers disaggregated by service, and timing of revenue recognition, reconciled to the Company’s segments, for the three and nine months ended September 30, 2024 and 2023:
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Three Months Ended September 30, 2024
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$12,721 $85,126 $— $97,847 
Workflow technology— 24,145 — 24,145 
Analytics— 9,629 — 9,629 
Total revenue from contracts with customers12,721 118,900 — 131,621 
Other sources of revenue563,939 6,827 4,453 575,219 
Total revenues$576,660 $125,727 $4,453 $706,840 
Timing of revenue recognition:
Services transferred at a point in time$576,660 $107,457 $4,453 $688,570 
Services transferred over time— 18,270 — 18,270 
Total revenues$576,660 $125,727 $4,453 $706,840 
Three Months Ended September 30, 2023
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$6,343 $73,121 $— $79,464 
Workflow technology— 21,526 — 21,526 
Analytics— 9,286 — 9,286 
Total revenue from contracts with customers6,343 103,933 — 110,276 
Other sources of revenue511,008 8,520 360 519,888 
Total revenues$517,351 $112,453 $360 $630,164 
Timing of revenue recognition:
Services transferred at a point in time$517,351 $94,152 $360 $611,863 
Services transferred over time— 18,301 — 18,301 
Total revenues$517,351 $112,453 $360 $630,164 
Nine Months Ended September 30, 2024
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$29,203 $245,972 $— $275,175 
Workflow technology— 72,257 — 72,257 
Analytics— 28,901 — 28,901 
Total revenue from contracts with customers29,203 347,130 — 376,333 
Other sources of revenue1,638,247 23,445 4,639 1,666,331 
Total revenues$1,667,450 $370,575 $4,639 $2,042,664 
Timing of revenue recognition:
Services transferred at a point in time$1,667,450 $316,790 $4,639 $1,988,879 
Services transferred over time— 53,785 — 53,785 
Total revenues$1,667,450 $370,575 $4,639 $2,042,664 

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Nine Months Ended September 30, 2023
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$22,677 $220,372 $— $243,049 
Workflow technology— 69,058 — 69,058 
Analytics— 29,116 — 29,116 
Total revenue from contracts with customers22,677 318,546 — 341,223 
Other sources of revenue1,398,845 21,499 (4,171)1,416,173 
Total revenues$1,421,522 $340,045 $(4,171)$1,757,396 
Timing of revenue recognition:
Services transferred at a point in time$1,421,522 $285,570 $(4,171)$1,702,921 
Services transferred over time— 54,475 — 54,475 
Total revenues$1,421,522 $340,045 $(4,171)$1,757,396 


Remaining Performance Obligations and Revenue Recognized from Past Performance Obligations

As of September 30, 2024 and 2023, the aggregate amount of the transaction price allocated to the performance obligations relating to workflow technology and analytics revenues that are unsatisfied (or partially unsatisfied) was not material.

Contract Assets and Contract Liabilities

The timing of the revenue recognition may differ from the timing of payment from customers. The Company records a receivable when revenue is recognized prior to payment, and when the Company has an unconditional right to payment. The Company records a contract liability when payment is received prior to the time at which the satisfaction of the service obligation occurs.

Receivables related to revenues from contracts with customers amounted to $61.9 million and $56.4 million as of September 30, 2024 and December 31, 2023, respectively. The Company did not identify any contract assets. There were no impairment losses on receivables as of September 30, 2024.

Deferred revenue primarily relates to deferred commissions allocated to analytics products and subscription fees billed in advance of satisfying the performance obligations. Deferred revenue related to contracts with customers was $9.4 million and $8.4 million as of September 30, 2024 and December 31, 2023, respectively. The Company recognized the full amount of revenue during the nine months ended September 30, 2024 and 2023, that had been recorded as deferred revenue in the respective prior year.

The Company has not identified any costs to obtain or fulfill its contracts under ASC 606.

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14. Income Taxes

The Company is subject to U.S. federal, state and local income tax at the rate applicable to corporations less the rate attributable to the noncontrolling interest in Virtu Financial. These noncontrolling interests are subject to U.S. taxation as partnerships. Accordingly, for the three and nine months ended September 30, 2024 and 2023, the income attributable to these noncontrolling interests was reported in the Condensed Consolidated Statements of Comprehensive Income, but the related U.S. income tax expense attributable to these noncontrolling interests was not reported by the Company as it is the obligation of the individual partners. The Company’s non-U.S. subsidiaries are subject to foreign income taxes in the jurisdictions in which they operate. The Company’s provisions for income taxes and effective tax rates were $28.1 million, and 19.1%, and $20.5 million, and 14.9% for the three months ended September 30, 2024 and 2023, respectively, and $83.9 million, and 19.0%, and $51.1 million, and 16.6% for the nine months ended September 30, 2024 and 2023, respectively. Income tax expense is also affected by the differing effective tax rates in foreign, state and local jurisdictions where certain of the Company’s subsidiaries are subject to corporate taxation.

Included in Other assets on the Condensed Consolidated Statements of Financial Condition at September 30, 2024 and December 31, 2023 are current income tax receivables of $34.1 million and $44.3 million, respectively. The balances at September 30, 2024 and December 31, 2023 primarily comprised income tax benefits due to the Company from federal, state, local, and foreign tax jurisdictions based on income before taxes. Included in Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition at September 30, 2024 and December 31, 2023 are current tax liabilities of $16.3 million and $6.8 million, respectively. The balances at September 30, 2024 and December 31, 2023 primarily comprise income taxes owed to federal, state and local, and foreign tax jurisdictions based on income before taxes.

Deferred income taxes arise primarily due to the amortization of the deferred tax assets recognized in connection with the IPO (see Note 5 “Tax Receivable Agreements”), the Acquisition of KCG, and the ITG Acquisition, differences in the valuation of financial assets and liabilities, and other temporary differences arising from the deductibility of compensation, depreciation, and other expenses in different time periods for book and income tax return purposes.

There are no expiration dates on the deferred tax assets. The provisions of ASC 740 require that carrying amounts of deferred tax assets be reduced by a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically with appropriate consideration given to all positive and negative evidence related to the realization of the deferred tax assets. At September 30, 2024 and December 31, 2023, the Company did not have any U.S. federal, state or local net operating loss carryforwards and therefore the Company did not record a deferred tax asset related to any federal net operating loss carryforwards.

As a result of the acquisitions of ITG and KCG, the Company has non-U.S. net operating losses at September 30, 2024 and December 31, 2023, of $301.6 million and $304.5 million, respectively, and has recorded related deferred tax assets of $56.4 million and $57.1 million, respectively. A full valuation allowance was recorded against these deferred tax assets at September 30, 2024 and December 31, 2023 as it is more likely than not that these deferred tax assets will not be realized. No valuation allowance against the remaining deferred taxes was recorded as of September 30, 2024 and December 31, 2023 because it is more likely than not that these deferred tax assets will be fully realized.

The Company is subject to taxation in U.S. federal, state, local and foreign jurisdictions. As of September 30, 2024, the Company’s tax years for 2015 through 2023 and 2016 through 2023 were subject to examination by U.S. and non-U.S. tax authorities, respectively. As a result of the ITG Acquisition and the Acquisition of KCG, the Company assumed any ITG and KCG tax exposures. In addition, the Company is subject to state and local income tax examinations in various jurisdictions for the tax years 2013 through 2023. The final outcome of these examinations is not yet determinable. However, the Company anticipates that adjustments related to these examinations, if any, will not result in a material change to its financial condition, results of operations and cash flows.

The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of income or loss before income taxes and noncontrolling interest. Penalties, if any, are recorded in Operations and administrative expense and interest received or paid is recorded in Other, net or Operations and administrative expense in the Condensed Consolidated Statements of Comprehensive Income, respectively.

The Company had $8.2 million of unrecognized tax benefits as of September 30, 2024, all of which would affect the Company’s effective tax rate if recognized. The Company has determined that there are no uncertain tax positions that would have a material impact on the Company’s financial position as of September 30, 2024.

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15. Commitments, Contingencies and Guarantees

Legal and Regulatory Proceedings

In the ordinary course of business, the nature of the Company’s business subjects it to claims, lawsuits, regulatory examinations or investigations and other proceedings, any of which could result in the imposition of fines, penalties or other sanctions against the Company. The Company and its subsidiaries are subject to several of these matters at the present time. As previously disclosed, the U.S. Securities and Exchange Commission undertook an investigation of aspects of the Company’s internal information access barriers. The Company cooperated with this civil investigation and engaged in settlement discussions but has been unable to reach a settlement. In September 2023, the SEC filed an action against the Company alleging violations of federal securities laws with respect to the Company’s information barriers policies and procedures for a specified time period in and around January 2018 to April 2019 and related statements made by the Company during such period. The Company believes it has meritorious defenses and is defending itself vigorously. Specifically, the Company is asserting, among other defenses, that it maintained reasonable policies, procedures and controls to protect data during the period consistent with applicable law, that related statements made to clients and investors were true and accurate, and that the statute of limitations has expired with respect to certain claims.

In matters related to the SEC investigation noted above, the Company and certain of its current and former executive officers were named as defendants on May 19, 2023 in Hiebert v. Virtu Financial, Inc., No. 23-cv-03770 and on October 31, 2023 in City of Birmingham Retirement and Relief System v. Virtu Financial, Inc., No. 23-cv-08123. The complaints were each filed by purported stockholders in the Eastern District of New York on behalf of a putative class and assert that the Company made materially false and misleading statements and omissions in its public filings in violation of federal securities laws. The complaints were subsequently consolidated and recaptioned in re Virtu Financial, Inc. Securities Litigation, No. 23-cv-03770. The Company also has received requests for information related to the SEC investigation pursuant to Section 220 of the Delaware General Corporation Law from counsel for purported stockholders. The Company believes it has meritorious defenses against pending or contemplated claims that its public disclosures were inadequate or misleading. The Company maintains that such disclosures were true and accurate and compliant with applicable law and will defend itself vigorously.

On November 30, 2020, the Company was named as a defendant in In re United States Oil Fund, LP Securities Litigation, No. 20-cv-4740. The consolidated amended complaint was filed in federal district court in New York on behalf of a putative class, and asserts claims against the Company and numerous other financial institutions under Section 11 of the Securities Act of 1933 in connection with trading in United States Oil Fund, LP, a crude oil ETF. The complaint also names the ETF, its sponsor, and related individuals as defendants. The complaint did not specify the amount of alleged damages. Defendants moved to dismiss the consolidated amended complaint on January 29, 2021; the motion is fully briefed and pending before the court. The Company believes that the claims are without merit and is defending itself vigorously.

On March 7, 2022, the Company was named as a defendant in Iron Workers Local No. 55 Pension Fund v. Virtu Financial, Inc., No. 2022-0211-PAF pending in the Court of Chancery of the State of Delaware. The complaint, filed by a purported stockholder, seeks to compel the inspection of certain Company books and records pursuant to Section 220 of the Delaware General Corporation Law. The complaint alleges that the stockholder seeks Company information to investigate (a) whether wrongdoing or mismanagement occurred in connection with distributions made to the partners of Virtu Financial pursuant to the Company’s Up-C corporate structure; (b) the independence and disinterestedness of the Company’s directors and/or officers and whether the directors breached their fiduciary duties; and (c) potential damages relating thereto. The Company has made substantial productions of documents and other information in response to plaintiff's requests. Though no substantive claim has been brought, the Company believes that any potential allegations of wrongdoing are without merit and intends to defend itself vigorously against any such allegations.

On October 17, 2022, the Company’s subsidiary, along with several other parties, was named as a defendant in Mallinckrodt PLC, et al. (Reorganized Debtors); Opioid Master Disbursement Trust II v. Argos Capital Appreciation Master Fund LP et al No. 20-12522. The complaint alleges that Mallinckrodt PLC engaged in a share repurchase program from 2015 through 2018 pursuant to which it repurchased its own shares in various open market transactions, a period during which it was allegedly insolvent. The plaintiff is seeking to unwind the transactions consummated under the program, alleging such transactions constituted fraudulent transfers by the debtor. The Company believes it has meritorious defenses against any unwinding of transactions, which it has asserted, and will continue to defend itself vigorously.

On December 1, 2022, the Company’s subsidiary, along with several other parties, was named as a defendant in Northwest Biotherapeutics, Inc. v. Canaccord Genuity LLC, et al No. 1:22-cv-10185. The initial complaint alleged that defendants engaged in market manipulation in the plaintiff’s stock during a period from 2018 to 2022. A first amended complaint was filed on April 10, 2023, bringing substantially the same allegations as the initial complaint. The first amended complaint was dismissed with leave to amend on February 14, 2024. Plaintiff filed a second amended complaint on March 18, 2024. Neither the operative complaint nor prior iterations specify the amount of alleged damages. The Company believes that the claims are without merit and is defending itself vigorously.
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On October 7, 2024, the Company and its 50% owned subsidiary, NLN Holdings, LLC, along with several other defendants, were named in a lawsuit brought by Skywave Networks, LLC in the United States District Court for the Northern District of Illinois, Skywave Networks, LLC v. DiSomma, et al., 1:24-cv-09650 (N.D.Ill.). The complaint alleges that defendants engaged in violations of federal law, 18 U.S.C. sec. 1962, in connection with the application for and utilization of various licenses issued by the Federal Communications Commission, purportedly harming plaintiffs’ attempts to offer certain network communications capacity on a commercial basis. The complaint does not specify any amount of alleged damages. The Company believes that the claims are without merit and intends to defend itself vigorously.

Given the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly in regulatory examinations or investigations or other proceedings in which substantial or indeterminate judgments, settlements, disgorgements, restitution, penalties, injunctions, damages or fines are sought, or where such matters are in the early stages, the Company cannot estimate losses or ranges of losses for such matters where there is only a reasonable possibility that a loss may be incurred, and utilizes its judgment in accordance with applicable accounting standards in booking any associated estimated liability. It is not presently possible to determine the ultimate exposure to these matters and it is possible that the resolution of the outstanding matters will significantly exceed any estimated liabilities accrued by the Company. In addition, there are numerous factors that result in a greater degree of complexity in class-action lawsuits as compared to other types of litigation. There can be no assurance that these various legal proceedings will not significantly exceed any estimated liability accrued by the Company or have a material adverse effect on the Company’s results of operations in any future period, and a material judgment, fine or sanction could have a material adverse impact on the Company’s financial condition, results of operations and cash flows. However, it is the opinion of management, after consultation with legal counsel that, based on information currently available, the ultimate outcome of these matters will not have a material adverse impact on the business, financial condition or operating results of the Company, although they might be material to the operating results for any particular reporting period. The Company carries directors’ and officers’ liability insurance coverage and other insurance coverage for potential claims, including securities actions, against the Company and its respective directors and officers.

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Other Legal and Regulatory Matters

The Company owns subsidiaries including regulated entities that are subject to extensive oversight under federal, state and applicable international laws as well as self-regulatory organization (“SRO”) rules. Changes in market structure and the need to remain competitive require constant changes to the Company's systems, order routing and order handling procedures. The Company makes these changes while continuously endeavoring to comply with many complex laws and rules. Compliance, surveillance and trading issues common in the securities industry are monitored by, reported to, and/or reviewed in the ordinary course of business by the Company's regulators in the U.S. and abroad. As a major order flow execution destination, the Company is named from time to time in, or is asked to respond to a number of regulatory matters brought by U.S. regulators, foreign regulators, SROs, as well as actions brought by private plaintiffs, which arise from its business activities. There has recently been an increased focus by regulators on Anti-Money Laundering and sanctions compliance by broker-dealers and similar entities, as well as an enhanced interest on suspicious activity reporting and transactions involving microcap and low-priced securities. In addition, there has been increased regulatory, congressional and media scrutiny of U.S. equities market structure, the retail trading environment in the U.S., wholesale market making and the relationships between retail broker-dealers and market making firms including, but not limited to, payment for order flow arrangements, other remuneration arrangements such as profit-sharing relationships and exchange fee and rebate structures, alternative trading systems and off-exchange trading more generally, high frequency trading, short selling, market fragmentation, colocation, and access to market data feeds. In 2022 and 2023, the SEC proposed several rule changes focused on equity market structure reform, certain of which have adopted while others remain pending. The SEC has recently (i) adopted rule amendments to minimum pricing increments under Rule 612 of Regulation NMS, access fee caps under Rule 610 of Regulation NMS, acceleration of the implementation of certain Market Data Infrastructure Rules, and amendment to the odd-lot information definition adopted under the MDI rules (collectively referred to as the “tick size, access fees and infostructure rule proposals”) which have a compliance date commencing in November 2025, (ii) adopted amendments to Rule 605 of Regulation NMS, which has a compliance date on or about December 15, 2025, (iii).approved a funding model submitted by several exchanges in relation to the Consolidated Audit Trail (CAT) which provides for fee collection commencing in November but is currently subject to legal challenge, and (iv) adopted rules to amend the definitions of “dealer” and “government securities dealer” within the Exchange Act, which is expected to broaden the scope of these registrant categories. The remaining pending proposals include, but are not limited to, (i) Proposed Rule 615 of Regulation NMS, which proposes to dramatically change U.S. equities market structure, the routing, handling and potentially the amount, character and cost of retail order flow, (ii) Regulation Best Execution, which would impose best execution requirements on broker-dealers which would be distinct from, but overlapping with, FINRA’s existing best execution rule (Rule 5310), (iii) a series of amendments to the definition of Exchange and Alternative Trading Systems (ATS), which would expand the scope of exchange and ATS registration and compliance requirements, (iv) proposed amendments to expand and update Regulation Systems Compliance and Integrity (SCI), and (v) a proposal to restrict volume based tiered pricing by equity exchanges in certain cases, and the SEC has indicated that additional rule proposals may be forthcoming. Further, on April 23, 2024, the Federal Trade Commission (FTC) announced a final rule banning most non-compete clauses in employer-employee contracts. The final rule was scheduled to become effective on September 4, 2024, but it was enjoined by a federal district court in September 2024 on the grounds that the rule exceeds the FTC's authority. The FTC is appealing the ruling and therefore its implementation has not yet been definitively resolved. These pending or potential rule changes, to the extent adopted, along with those that have recently been adopted, could adversely affect the Company’s business or the Company’s industry. As indicated above, from time to time, the Company is the subject of requests for information and documents from the SEC, the Financial Industry Regulatory Authority (“FINRA”), state attorneys general, and other regulators and governmental authorities. It is the Company's practice to cooperate and comply with the requests for information and documents. Additional information regarding legal and regulatory risks is described within the “Risk Factors” section under the sub header of “Legal and Regulatory Risks” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

As indicated above, the Company is currently the subject of various regulatory reviews and investigations by state, federal and foreign regulators and SROs, including the SEC and FINRA. In some instances, these matters may result in a disciplinary action and/or a civil or administrative action.

Representations and Warranties; Indemnification Arrangements

In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties in addition to indemnification obligations, including indemnification obligations in connection with the Acquisition of KCG and the ITG Acquisition. The Company's maximum exposure under these arrangements is currently unknown, as any such exposure could relate to claims not yet brought or events which have not yet occurred.

Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and general indemnifications. The Company has also provided general indemnifications to its managers, officers, directors, employees, and agents against expenses, legal fees, judgments, fines, settlements, and other amounts actually and reasonably incurred by such persons under certain circumstances as more fully
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disclosed in its operating agreement. The overall maximum amount of the obligations (if any) cannot reasonably be estimated as it will depend on the facts and circumstances that give rise to any future claims.

16. Leases

The Company primarily enters into lessee arrangements for corporate office space, data centers, and technology equipment. For more information on lease accounting, see Note 2 "Summary of Significant Accounting Policies" and Note 15 "Leases" to the Consolidated Financial Statements of the Company's 2023 Annual Report on Form 10-K.

Lease assets and liabilities are summarized as follows:

(in thousands)Financial Statement LocationSeptember 30, 2024December 31, 2023
Operating leases
Operating lease right-of-use assetsOperating lease right-of-use assets$190,261 $229,499 
Operating lease liabilitiesOperating lease liabilities236,253 278,317 
Finance leases
Property and equipment, at costProperty, equipment, and capitalized software, net43,032 40,857 
Accumulated depreciationProperty, equipment, and capitalized software, net(18,233)(11,781)
Finance lease liabilitiesAccounts payable, accrued expenses, and other liabilities25,666 29,609 

Weighted average remaining lease term and discount rate are as follows:

September 30, 2024December 31, 2023
Weighted average remaining lease term
Operating leases4.78 years5.25 years
Finance leases3.40 years3.50 years
Weighted average discount rate
Operating leases6.35 %6.40 %
Finance leases5.87 %5.51 %

The components of lease expense are as follows:

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Operating lease cost:
Fixed$17,916 $18,794 $55,114 $57,159 
Variable1,693 1,430 4,590 4,486 
Total Operating lease cost$19,609 $20,224 $59,704 $61,645 
Sublease income3,948 4,917 13,330 14,724 
Finance lease cost:
Amortization of ROU Asset$2,718 $2,269 $7,874 $6,821 
Interest on lease liabilities398 290 1,193 810 
Total Finance lease cost$3,116 $2,559 $9,067 $7,631 
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Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of September 30, 2024, are as follows:

(in thousands)Operating LeasesFinance Leases
2024$19,245 $2,937 
202571,332 8,494 
202668,517 7,499 
202731,944 6,329 
202828,025 2,757 
2029 and thereafter55,309 408 
Total lease payments$274,372 $28,424 
Less imputed interest(38,119)(2,758)
Total lease liability$236,253 $25,666 

17. Cash

The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash
as reported within the Condensed Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows.

(in thousands)September 30, 2024December 31, 2023
Cash and cash equivalents $701,405 $820,436 
Cash restricted or segregated under regulations and other36,823 35,024 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$738,228 $855,460 

18. Capital Structure

The Company has four classes of authorized common stock. The Class A Common Stock and the Class C Common Stock have one vote per share. The Class B Common Stock and the Class D Common Stock have 10 votes per share. Shares of the Company’s common stock generally vote together as a single class on all matters submitted to a vote of the Company’s stockholders. The Founder Member controls approximately 86.8% of the combined voting power of our common stock as a result of its ownership of our Class A, Class C and Class D Common Stock. The Company holds approximately a 57.2% interest in Virtu Financial at September 30, 2024.

During the period prior to the Company's IPO and certain reorganization transactions consummated in connection with the IPO, Class A-2 profits interests and Class B interests in Virtu Financial were issued to Employee Holdco (as defined below) on behalf of certain key employees and stakeholders. In connection with these reorganization transactions, all Class A-2 profits interests and Class B interests were reclassified into Virtu Financial Units. As of September 30, 2024 and December 31, 2023, there were 4,007,826 and 4,040,772 Virtu Financial Units outstanding held by Employee Holdco (as defined below), respectively, and 32,946 and 422,068 of such Virtu Financial Units and corresponding Class C Common Stock were exchanged into Class A Common Stock, forfeited or repurchased during the nine months ended September 30, 2024 and 2023, respectively.

Amended and Restated 2015 Management Incentive Plan

The Company’s Board of Directors and stockholders adopted the 2015 Management Incentive Plan, which became effective upon consummation of the IPO, and was subsequently amended and restated following receipt of approval from the Company’s stockholders on June 30, 2017, June 5, 2020 and June 2, 2022. The Amended and Restated 2015 Management Incentive Plan provides for the grant of stock options, restricted stock units, and other awards based on an aggregate of 26,000,000 shares of Class A Common Stock, subject to additional sublimits, including limits on the total option grant to any one participant in a single year and the total performance award to any one participant in a single year.

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On November 13, 2020, the Company amended its form award agreement for the issuance of RSUs to provide for the continued vesting of outstanding RSU awards upon the occurrence of a qualified retirement (the “RSU Amendment”). A qualified retirement generally means a voluntary resignation by the participant (i) after five years of service, (ii) the participant attaining the age of 50 and (iii) the sum of the participant's age and service at the time of termination equaling or exceeding 65. Continued vesting is subject to the participant entering into a 2 year non-compete. The RSU Amendment was authorized and approved by the Compensation Committee of the Company's Board of Directors. As a result of the RSU Amendment, currently issued and outstanding RSUs held by the Company's employees, including its executive officers, shall be deemed to be subject to the amended terms of the form award agreement, and any future RSU awards shall also be governed by such amended terms.

Share Repurchase Program

On November 6, 2020, the Company's Board of Directors authorized a share repurchase program of up to $100.0 million in Class A common stock and Virtu Financial Units by December 31, 2021. On February 11, 2021, the Company's Board of Directors authorized the expansion of the program by an additional $70 million in Class A Common Stock and Virtu Financial Units. On May 4, 2021, the Company's Board of Directors authorized the expansion of the Company's share repurchase program, increasing the total authorized amount by an additional $300 million in Class A Common Stock and Virtu Financial Units and extending the duration of the program through May 4, 2022. On November 3, 2021 the Company's Board of Directors authorized another expansion of the program by an additional $750 million to $1,220 million and extending the duration of the program through November 3, 2023, which was subsequently extended through December 31, 2024. On April 24, 2024, the Company's Board of Directors authorized the expansion of the program by an additional $500 million to $1,720 million and extended the duration through April 24, 2026. The share repurchase program authorizes the Company to repurchase shares from time to time in open market transactions, privately negotiated transactions or by other means. Repurchases are also permitted to be made under Rule 10b5-1 plans. The timing and amount of repurchase transactions are determined by the Company's management based on its evaluation of market conditions, share price, cash sources, legal requirements and other factors. From the inception of the program through September 30, 2024, the Company repurchased approximately 48.7 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,224.7 million. As of September 30, 2024, the Company has approximately $495.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Employee Exchanges

During the nine months ended September 30, 2024 and 2023, pursuant to the exchange agreement by and among the Company, Virtu Financial and holders of Virtu Financial Units, certain current and former employees elected to exchange 31,097 and 186,394 units, respectively, in Virtu Financial held directly or on their behalf by Virtu Employee Holdco LLC (“Employee Holdco”) on a one-for-one basis for shares of Class A Common Stock.

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Accumulated Other Comprehensive Income

The following table presents the changes in Other Comprehensive Income for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024
(in thousands)AOCI Beginning BalanceAmounts recorded
in AOCI		Amounts reclassified from AOCI to incomeAOCI Ending Balance
Net change in unrealized cash flow hedges gains (losses) (1)$16,894 $(4,217)$(6,983)$5,694 
Foreign exchange translation adjustment(8,185)3,455 — (4,730)
Total$8,709 $(762)$(6,983)$964 
(1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. As of September 30, 2024, the Company expects approximately $11.1 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings.
Three Months Ended September 30, 2023
(in thousands)AOCI Beginning BalanceAmounts recorded
in AOCI		Amounts reclassified from AOCI to incomeAOCI Ending Balance
Net change in unrealized cash flow hedges gains (losses) (1)$41,970 $3,733 $(8,199)$37,504 
Foreign exchange translation adjustment(10,838)(2,339)— (13,177)
Total$31,132 $1,394 $(8,199)$24,327 
(1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income.

Nine Months Ended September 30, 2024
(in thousands)AOCI Beginning BalanceAmounts recorded
in AOCI		Amounts reclassified from AOCI to incomeAOCI Ending Balance
Net change in unrealized cash flow hedges gains (losses) (1) $23,416 $9,781 $(27,503)$5,694 
Foreign exchange translation adjustment(6,369)1,639 — (4,730)
Total$17,047 $11,420 $(27,503)$964 
(1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. As of September 30, 2024, the Company expects approximately $11.1 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings.
Nine Months Ended September 30, 2023
(in thousands)AOCI Beginning BalanceAmounts recorded
in AOCI		Amounts reclassified from AOCI to incomeAOCI Ending Balance
Net change in unrealized cash flow hedges gains (losses) (1)$44,925 $14,635 $(22,056)$37,504 
Foreign exchange translation adjustment(13,321)144 — (13,177)
Total$31,604 $14,779 $(22,056)$24,327 
(1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income.

19. Share-based Compensation

Pursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 18 “Capital Structure”, and in connection with the IPO, non-qualified stock options to purchase shares of Class A Common Stock were granted, each of which vests in equal annual installments over a period of four years from grant date and expires not later than 10 years from the date of grant.

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The following table summarizes activity related to stock options for the nine months ended September 30, 2024 and 2023:

 Options OutstandingOptions Exercisable
 Number of OptionsWeighted Average Exercise Price Per ShareWeighted Average Remaining Contractual LifeNumber of OptionsWeighted Average Exercise Price
Per Share
At December 31, 20221,521,776 $19.00 2.241,521,776 $19.00 
Granted— — — — — 
Exercised— — — — — 
Forfeited or expired(10,000)— — (10,000)— 
At September 30, 20231,511,776 $19.00 1.491,511,776 $19.00 
At December 31, 20231,511,776 $19.00 1.241,511,776 $19.00 
Granted— — — — — 
Exercised(483,045)19.00 — (483,045)19.00 
Forfeited or expired(2,750)— — (2,750)— 
At September 30, 20241,025,981 $19.00 0.491,025,981 $19.00 

The expected life was determined based on an average of vesting and contractual period. The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined based on historical volatilities of comparable companies. The expected dividend yield was determined based on estimated future dividend payments divided by the IPO stock price.


Class A Common Stock, Restricted Stock Units and Restricted Stock Awards

Pursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 18 “Capital Structure”, subsequent to the IPO, shares of immediately vested Class A Common Stock, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) were granted, with RSUs and RSAs vesting over a period of up to 4 years. The fair value of the Class A Common Stock and RSUs was determined based on a volume weighted average price and the expense is recognized on a straight-line basis over the vesting period. The fair value of the RSAs was determined based on the closing price as of the date of grant and the expense is recognized from the date that achievement of the performance target becomes probable through the remainder of the vesting period. Performance targets are based on the Company's adjusted EBITDA for certain future periods. For the nine months ended September 30, 2024 and 2023, respectively, there were 878,091 and 868,315 shares of immediately vested Class A Common Stock granted as part of year-end compensation. In addition, the Company accrued compensation expense of $6.9 million and $5.9 million for the three months ended September 30, 2024 and 2023, respectively, and $19.6 million and $17.9 million for the nine months ended September 30, 2024 and 2023, respectively, related to immediately vested Class A Common Stock expected to be awarded as part of year-end incentive compensation, which was included in Employee compensation and payroll taxes on the Condensed Consolidated Statements of Comprehensive Income and Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition. 

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The following table summarizes activity related to RSUs and RSAs for the nine months ended September 30, 2024 and 2023:
Number of RSUs and RSAsWeighted
Average Fair Value 
At December 31, 20223,954,833 $28.13 
Granted (1)3,763,217 19.28 
Forfeited(184,381)26.55 
Vested(2,558,333)23.63 
At September 30, 20234,975,336 $23.81 
At December 31, 20234,903,174 $23.90 
Granted3,559,799 18.13 
Forfeited(132,554)21.58 
Vested(2,820,419)21.65 
At September 30, 20245,510,000 $21.38 
(1) Excluded in the number of RSUs and RSAs are 37,500 participating RSAs for nine months ended September 30, 2023, where the grant date has not been achieved because the performance conditions have not been met.

The Company recognized $11.1 million and $9.7 million for the three months ended September 30, 2024 and 2023, respectively, and $31.3 million and $29.8 million for the nine months ended September 30, 2024 and 2023, respectively, of compensation expense in relation to RSUs. As of September 30, 2024 and December 31, 2023, total unrecognized share-based compensation expense related to unvested RSUs was $61.7 million and $55.2 million, respectively, and this amount is to be recognized over a weighted average period of 1.1 years and 0.9 years, respectively. Awards in which the specific performance conditions have not been met are not included in unrecognized share-based compensation expense.

On November 13, 2020, the Company adopted the Virtu Financial, Inc. Deferred Compensation Plan (the “DCP”). The DCP permits eligible executive officers and other employees to defer cash or equity-based compensation beginning in the calendar year ending December 31, 2021, subject to certain limitations and restrictions. Deferrals of cash compensation may also be directed to notional investments in certain of the employee investment opportunities.

20 Regulatory Requirement

U.S. Subsidiary

The Company's U.S. broker-dealer subsidiaries VAL and RFQ-hub Americas LLC (“RAL”, as described in Note 3 “Business Held for Sale”, which is currently held for sale), are subject to the SEC Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital as detailed in the table below. RAL became a U.S. broker-dealer in June 2023. Pursuant to New York Stock Exchange (“NYSE”) rules, VAL was also required to maintain $1.0 million of capital in connection with the operation of its designated market maker (“DMM”) business as of September 30, 2024. The required amount is determined under the exchange rules as the greater of (i) $1.0 million or (ii) $75,000 for every 0.1% of NYSE transaction dollar volume in each of the securities for which the Company is registered as the DMM.

The regulatory capital and regulatory capital requirements of the Company's U.S. subsidiaries as of September 30, 2024 was as follows:
(in thousands)Regulatory CapitalRegulatory Capital RequirementExcess Regulatory Capital
Virtu Americas LLC$398,257 $1,574 $396,683 
RFQ-hub Americas LLC664 6 658 

As of September 30, 2024, VAL had $30.2 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $6.3 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. The balances are included within Cash restricted or segregated under regulations and other on the Condensed Consolidated Statements of Financial Condition.

The regulatory capital and regulatory capital requirements of the Company's U.S. subsidiaries as of December 31, 2023 was as follows:
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(in thousands)Regulatory CapitalRegulatory Capital RequirementExcess Regulatory Capital
Virtu Americas LLC$412,626 $1,000 $411,626 
RFQ-hub Americas LLC1,425 15 1,410 

As of December 31, 2023, VAL had $28.7 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $6.1 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers.

Foreign Subsidiaries    

The Company’s foreign subsidiaries are subject to regulatory capital requirements set by local regulatory bodies, including the Canadian Investment Regulatory Organization (“CIRO”), the Central Bank of Ireland (“CBI”), the Financial Conduct Authority (“FCA”) in the United Kingdom, the Australian Securities and Investments Commission (“ASIC”), the Securities and Futures Commission in Hong Kong (“SFC”), and the Monetary Authority of Singapore (“MAS”).

The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of September 30, 2024 were as follows:
(in thousands)Regulatory CapitalRegulatory Capital RequirementExcess Regulatory Capital
Canada
Virtu Canada Corp (1)$13,479 $185 $13,294 
Virtu Financial Canada ULC1,326 185 1,141 
Ireland
Virtu Europe Trading Limited (1)61,829 27,772 34,057 
Virtu Financial Ireland Limited (1)82,169 41,608 40,561 
United Kingdom
Virtu ITG UK Limited (1)3,253 1,003 2,250 
Asia Pacific
Virtu ITG Australia Limited34,246 27,985 6,261 
Virtu ITG Hong Kong Limited1,947 386 1,561 
Virtu ITG Singapore Pte Limited1,142 133 1,009 
Virtu Financial Singapore Pte. Ltd.208,612 148,515 60,097 
(1) Preliminary
As of September 30, 2024, Virtu Europe Trading Limited had $62 thousand of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd. had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers.

The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of December 31, 2023 were as follows:
(in thousands)Regulatory CapitalRegulatory Capital RequirementExcess Regulatory Capital
Canada
Virtu ITG Canada Corp$14,630 $189 $14,441 
Virtu Financial Canada ULC1,197 189 1,008 
Ireland
Virtu Europe Trading Limited86,370 27,821 58,549 
Virtu Financial Ireland Limited88,939 40,459 48,480 
United Kingdom
Virtu ITG UK Limited2,040 955 1,085 
Asia Pacific
Virtu ITG Australia Limited24,788 3,856 20,932 
Virtu ITG Hong Kong Limited2,786 445 2,341 
Virtu ITG Singapore Pte Limited953 130 823 
Virtu Financial Singapore Pte. Ltd.126,022 73,407 52,615 

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As of December 31, 2023, Virtu Europe Trading Limited had $36 thousand of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers.

21. Geographic Information and Business Segments

The Company operates its business in the U.S. and internationally, primarily in Europe and Asia. Significant transactions and balances between geographic regions occur primarily as a result of certain of the Company’s subsidiaries incurring operating expenses such as employee compensation, communications and data processing and other overhead costs, for the purpose of providing execution, clearing and other support services to affiliates. Charges for transactions between regions are designed to approximate full costs. Intra-region income and expenses and related balances have been eliminated in the geographic information presented below to accurately reflect the external business conducted in each geographical region. The revenues are attributed to countries based on the locations of the subsidiaries. The following table presents total revenues by geographic area for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Revenues:
United States$576,606 $537,574 $1,662,612 $1,475,541 
Ireland63,024 52,181 192,346 153,633 
Others67,210 40,409 187,706 128,222 
Total revenues$706,840 $630,164 $2,042,664 $1,757,396 

The Company has two operating segments: (i) Market Making and (ii) Execution Services; and one non-operating segment: Corporate.

The Market Making segment principally consists of market making in the cash, futures, and options markets across global equities, fixed income, currencies, and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker-dealers, banks and institutions. The Company engages in principal trading in the Market Making segment direct to clients as well as in a supplemental capacity on exchanges, Electronic Communications Networks (“ECNs”) and alternative trading systems (“ATSs”). The Company is an active participant on all major global equity and futures exchanges and also trades on substantially all domestic electronic options exchanges. As a complement to electronic market making, the cash trading business handles specialized orders and also transacts on the OTC Link ATS operated by OTC Markets Group Inc. 

The Execution Services segment comprises client-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker-dealers. The Company earns commissions as an agent on behalf of clients as well as between principals to transactions; in addition, the Company will commit capital on behalf of clients as needed. Client-based, execution-only trading in the segment is done primarily through a variety of access points including: (i) algorithmic trading and order routing in global equities and options; (ii) institutional sales traders who offer portfolio trading and single stock sales trading which provides execution expertise for program, block and riskless principal trades in global equities and ETFs; and (iii) matching of client conditional orders in POSIT Alert and client orders in the Company's ATSs, including Virtu MatchIt, and POSIT. The Execution Services segment also includes revenues derived from providing (a) proprietary risk management and trading infrastructure technology to select third parties for a service fee, (b) workflow technology, the Company’s integrated, broker-neutral trading tools delivered across the globe including trade order and execution management and order management software applications and network connectivity and (c) trading analytics, including (1) tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance, (2) portfolio construction and optimization decisions and (3) securities valuation. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

The Corporate segment contains the Company's investments, principally in strategic trading-related opportunities and maintains corporate overhead expenses and all other income and expenses that are not attributable to the Company's other segments.

Management evaluates the performance of its segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. The Company’s total revenues and
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income (loss) before income taxes and noncontrolling interest (“Pre-tax earnings”) by segment for the three months ended September 30, 2024 and 2023 are summarized in the following table:
(in thousands)Market
Making		Execution
Services		CorporateConsolidated
Total
2024    
Total revenue$576,660 $125,727 $4,453 $706,840 
Income (loss) before income taxes and noncontrolling interest
125,556 18,275 3,329 147,160 
2023
Total revenue$517,351 $112,453 $360 $630,164 
Income (loss) before income taxes and noncontrolling interest130,252 7,814 39 138,105 

The Company’s Pre-tax earnings by segment for the nine months ended September 30, 2024 and 2023 are summarized in the following table:
(in thousands)Market MakingExecution ServicesCorporateConsolidated Total
2024
Total revenue$1,667,450 $370,575 $4,639 $2,042,664 
Income (loss) before income taxes and noncontrolling interest
397,050 43,118 2,197 442,365 
2023
Total revenue$1,421,522 $340,045 $(4,171)$1,757,396 
Income (loss) before income taxes and noncontrolling interest
298,104 16,711 (6,478)308,337 
22. Related Party Transactions

The Company incurs expenses and maintains balances with its affiliates in the ordinary course of business. As of September 30, 2024 and December 31, 2023 the Company had net payables to its affiliates of $1.1 million and $1.5 million, respectively.

The Company has held a minority interest in JNX since 2016 (see Note 10 “Financial Assets and Liabilities”). The Company pays exchange fees to JNX for the trading activities conducted on its proprietary trading system. The Company paid $3.5 million and $2.4 million for the three months ended September 30, 2024 and 2023, respectively, and $8.5 million and $8.4 million for the nine months ended September 30, 2024 and 2023, respectively, to JNX for these trading activities.

The Company pays monthly use fees to a JV in which it holds an interest (see Note 12 “Variable Interest Entities”). These monthly fees are for the use of communication networks operated by the JV and are recorded within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income. The Company previously held a similar arrangement with another telecommunication JV and paid a monthly use fee, and the Company disposed of its interests in this JV and ended the monthly fee arrangement as of September 1, 2024. The Company made payments to these JVs of $13.5 million and $12.6 million for the three months ended September 30, 2024 and 2023, respectively, and $28.3 million and $25.2 million for the nine months ended September 30, 2024 and 2023, respectively.

The Company has an interest in Members Exchange, a member-owned equities exchange. The Company pays regulatory and transaction fees and receives rebates from trading activities. The Company made payments of $1.1 million and $2.2 million for the three months ended September 30, 2024 and 2023, respectively, and $5.9 million and $2.4 million for the nine months ended September 30, 2024 and 2023, respectively.

23. Subsequent Events

The Company has evaluated subsequent events for adjustment to or disclosure in its Condensed Consolidated Financial Statements through the date of this report, and has not identified any recordable or disclosable events, not otherwise reported in these Condensed Consolidated Financial Statements or the notes thereto, except for the following: 

On October 24, 2024, the Company’s Board of Directors declared a dividend of $0.24 per share of Class A Common Stock and Class B Common Stock and per participating Restricted Stock Unit and Restricted Stock Award that will be paid on December 15, 2024 to holders of record as of December 1, 2024.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
The following management’s discussion and analysis covers the three and nine months ended September 30, 2024, and 2023 should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes for the period ended September 30, 2024, which are included in Part I, Item 1 of this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and accompanying notes and MD&A for the year ended December 31, 2023, which are included in Item 8 and 7 respectively, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. This management’s discussion and analysis contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Unless otherwise stated, all amounts are presented in thousands of dollars.
 
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements. You should not place undue reliance on forward-looking statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project” or, in each case, their negative, or other variations or comparable terminology and expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you read and consider this Quarterly Report on Form 10-Q, you should understand that forward-looking statements are not guarantees of performance or results and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report on Form 10-Q. By their nature, forward-looking statements involve known and unknown risks and uncertainties, including those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”) on February 16, 2024 (the “2023 Form 10-K”), because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the forward-looking statements contained in this Quarterly Report on Form 10-Q are based on reasonable assumptions, you should be aware that many factors, including those described under the heading “Risk Factors” in our 2023 Form 10-K, could affect our actual financial results or results of operations and cash flows, and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to:
•volatility in levels of overall trading activity;
•dependence upon trading counterparties, clients and clearing houses performing their obligations to us;
•failures of our customized trading platform;
•risks inherent to the electronic market making business and trading generally;
•SEC proposals focused on equity markets which may, if adopted, materially change U.S. equity market structure, including by reducing overall trading volumes, reducing off-exchange trading and market making opportunities, requiring additional tools, platforms and services to register as an ATS or exchange, and generally increasing the implicit and explicit cost as well as the complexity of the U.S. equities eco-system for all participants;
•additionally, enhanced regulatory, congressional, and media scrutiny, including attention to electronic trading, wholesale market making and off-exchange trading, payment for order flow, and other market structure topics may result in additional potential changes in regulation or law which could have an adverse effect on our business as well as adversely impact the public's perception of us or of companies in our industry;
•increased competition in market making activities and execution services;
•dependence on continued access to sources of liquidity;
•risks associated with self-clearing and other operational elements of our business, including but limited to risks related to funding and liquidity;
•obligations to comply with applicable regulatory capital requirements;
•litigation or other legal and regulatory-based liabilities;
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•changes in laws, rules or regulations, including proposed legislation that would impose taxes on certain financial transactions in the European Union, the U.S. (and certain states therein) and other jurisdictions and other potential changes which could increase our corporate or other tax obligations in one or more jurisdictions;
•obligations to comply with laws and regulations applicable to our operations in the U.S. and abroad;
•need to maintain and continue developing proprietary technologies;
•capacity constraints, system failures, and delays;
•dependence on third-party infrastructure or systems;
•use of open source software;
•failure to protect or enforce our intellectual property rights in our proprietary technology;
•failure to protect confidential and proprietary information;
•failure to protect our systems from internal or external cyber threats that could result in damage to our computer systems, business interruption, loss of data, monetary payment demands or other consequences;
•risks associated with international operations and expansion, including failed acquisitions or dispositions;
•the effects of and changes in economic conditions (such as volatility in the financial markets, increased inflation, monetary conditions and foreign currency and continued or exacerbated exchange rate fluctuations, foreign currency controls and/or government mandated pricing controls, as well as in trade, monetary, fiscal and tax policies in international markets), political conditions (such as military actions and terrorist activities), and other global events such as fires, geopolitical conflicts, natural disasters, pandemics or extreme weather;
•risks associated with potential growth and associated corporate actions;
•risks associated with new and emerging asset classes and eco-systems in which we may participate, including digital assets, including risks related to volatility in the underlying assets, regulatory uncertainty, evolving industry practices and standards around custody, clearing and settlement, and other risks inherent in a new and evolving asset class;
•inability to access, or delay in accessing, the capital markets to sell shares or raise additional capital;
•loss of key executives and failure to recruit and retain qualified personnel; and
•risks associated with losing access to a significant exchange or other trading venue.

Our forward-looking statements made herein are made only as of the date of this Quarterly Report on Form 10-Q. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this Quarterly Report on Form 10-Q.

Unless the context otherwise requires, the terms “we,” “us,” “our,” “Virtu” and the “Company” refer to Virtu Financial, Inc., a Delaware corporation, and its consolidated subsidiaries and the term “Virtu Financial” refers to Virtu Financial LLC, a Delaware limited liability company and a consolidated subsidiary of ours.

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Overview

We are a leading financial services firm that leverages cutting edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to our clients. Leveraging our global market structure expertise and scaled, multi-asset technology infrastructure, we provide our clients with a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Our product offerings allow our clients to trade on hundreds of venues across over 50 countries and in multiple asset classes, including global equities, ETFs, options, foreign exchange, futures, fixed income, cryptocurrencies and other commodities. Our integrated, multi-asset analytics platform provides a range of pre- and post-trade services, data products and compliance tools that our clients rely upon to invest, trade and manage risk across global markets. We believe that our broad diversification, in combination with our proprietary technology platform and low-cost structure gives us the scale necessary to grow our business around the globe as we service clients and facilitate risk transfer between global capital markets participants by providing liquidity, while at the same time earning attractive margins and returns.

Technology and operational efficiency are at the core of our business, and our focus on technology is a key element of our success. We have developed a proprietary, multi-asset, multi-currency technology platform that is highly reliable, scalable and modular, and we integrate directly with exchanges, liquidity centers, and our clients. Our market data, order routing, transaction processing, risk management and market surveillance technology modules manage our market making and execution services activities in an efficient manner and enable us to scale our activities globally across additional securities and other financial instruments and asset classes without significant incremental costs or third-party licensing or processing fees.

We believe that technology-enabled market makers and execution services providers like Virtu serve an important role in maintaining and enhancing the overall health and efficiency of the global capital markets by ensuring that market participants have an efficient means to invest, transfer risk and analyze the quality of executions. We believe that market participants benefit from the increased liquidity, lower overall trading costs and execution transparency that Virtu provides.

Our execution services and client solutions products are designed to be transparent, because we believe transparency makes markets more efficient and helps investors make better, more informed decisions. We use the latest technology to create and deliver liquidity to global markets and innovative trading solutions and analytics tools to our clients. We interact directly with hundreds of retail brokers, Registered Investment Advisors, private client networks, sell-side brokers, and buy-side institutions.

We have two operating segments: Market Making and Execution Services, and one non-operating segment: Corporate. Our management allocates resources, assesses performance and manages our business according to these segments.

Market Making

We leverage cutting edge technology to provide competitive and deep liquidity that helps to create more efficient markets around the world. As a market maker and liquidity provider, we stand ready, at any time, to buy or sell a broad range of securities and other financial instruments, and we generate profits by buying and selling large volumes of securities and other financial instruments and earning small bid/ask spreads. Our market structure expertise, broad diversification, and scalable execution technology enable us to provide competitive bids and offers in over 25,000 securities and other financial instruments, on over 250 venues, in 40 countries worldwide. We use the latest technology to create and deliver liquidity to the global markets and automate our market making, risk controls, and post-trade processes. As a market maker, we interact directly with hundreds of retail brokers, Registered Investment Advisors, private client networks, sell-side brokers, and buy-side institutions.

We believe the overall level of volumes and realized volatility as well as the attractiveness of the order flow we interact with and the level of retail participation in the various markets we serve have the greatest impact on the financial performance of our market making businesses. Increases in market volatility can cause bid/ask spreads to widen as market participants are more willing to pay market makers like us to transact immediately and as a result, market makers’ capture rate per notional amount transacted may increase.

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Execution Services

We offer client execution services and trading venues that provide transparent trading in global equities, ETFs, fixed income, currencies, and commodities to institutions, banks and broker-dealers. We generally earn commissions when transacting as an agent for our clients. Client-based, execution-only trading within this segment is done through a variety of access points including: (a) algorithmic trading and order routing; (b) institutional sales traders who offer portfolio trading and single stock sales trading which provides execution expertise for program, block and riskless principal trades in global equities and ETFs; and (c) matching of client conditional orders in POSIT Alert and in our ATSs, including Virtu MatchIt and POSIT. We also earn revenues (a) by providing our proprietary technology and infrastructure to select third parties for a service fee, (b) through workflow technology and our integrated, broker-neutral trading tools delivered across the globe, including order and execution management systems and order management software applications and network connectivity and (c) through trading analytics, including (1) tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance, (2) portfolio construction and optimization decisions and (3) securities valuation. The segment also includes the results of our capital markets business, in which we act as an agent for issuers in connection with at-the-market offerings and buyback programs.

Corporate

Our Corporate segment contains investments principally in strategic financial services-oriented opportunities and maintains corporate overhead expenses and all other income and expenses that are not attributable to our other segments.

Credit Agreement

On March 1, 2019, the “ITG Closing Date”, we announced the completed acquisition of Investment Technology Group, Inc. and its subsidiaries (“ITG”) in an all-cash transaction (the “ITG Acquisition”). In connection with the ITG Acquisition, Virtu Financial, VFH Parent LLC, a Delaware limited liability company and a subsidiary of Virtu Financial (“VFH”), and Impala Borrower LLC (the “Acquisition Borrower”), a subsidiary of the Company, entered into a credit agreement, with the lenders party thereto, Jefferies Finance LLC, as administrative agent and Jefferies Finance LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners (the “Acquisition Credit Agreement”). The Acquisition Credit Agreement provided (i) a senior secured first lien term loan (together with the Acquisition Incremental Term Loans, as defined below; the “Acquisition First Lien Term Loan Facility”) in an aggregate principal amount of $1,500.0 million, drawn in its entirety on the ITG Closing Date, of which approximately $404.5 million was borrowed by VFH to repay all amounts outstanding under a previous term loan facility and the remaining approximately $1,095.0 million borrowed by the Acquisition Borrower to finance the consideration and fees and expenses paid in connection with the ITG Acquisition, and (ii) a $50.0 million senior secured first lien revolving facility to VFH (the “Acquisition First Lien Revolving Facility”), with a $5.0 million letter of credit subfacility and a $5.0 million swingline subfacility. After the ITG Closing Date, VFH assumed the obligations of the Acquisition Borrower in respect of the acquisition term loans. On October 9, 2019, VFH entered into an amendment (“Amendment No. 1”), which amended the Acquisition Credit Agreement dated as of March 1, 2019, to, among other things, provide for $525.0 million in aggregate principal amount of incremental term loans (the “Acquisition Incremental Term Loans”), and amend the related collateral agreement. On March 2, 2020, VFH entered into a second amendment (“Amendment No. 2”), which further amended the Acquisition Credit Agreement to, among other things, reduce the interest rate spread over adjusted London Interbank Offered Rate (“LIBOR”) or the alternate base rate by 0.50% per annum and eliminated any step-down in the spread based on VFH’s first lien leverage ratio.

On January 13, 2022 (the “Credit Agreement Closing Date”), VFH and Virtu Financial entered into a credit agreement, with the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent and JPMorgan Chase bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, Barclays Bank plc, Jefferies Finance LLC, BMO Capital Markets Corp., and CIBC World Markets Corp., as joint lead arrangers and bookrunners (the “Credit Agreement”). The Credit Agreement provides (i) a senior secured first lien term loan in an aggregate principal amount of $1,800.0 million, drawn in its entirety on the Credit Agreement Closing Date, the proceeds of which were used by VFH to repay all amounts outstanding under the Acquisition Credit Agreement, to pay fees and expenses in connection therewith, to fund share repurchases under the Company’s repurchase program and for general corporate purposes, and (ii) a $250.0 million senior secured first lien revolving facility to VFH, with a $20.0 million letter of credit subfacility and a $20.0 million swingline subfacility.

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On June 21, 2024, the Company entered into Amendment No. 1 to the Credit Agreement (the “Amended Credit Agreement”) and completed the issuance of the Notes (as defined below). Pursuant to the Amended Credit Agreement, $1,245.0 million in aggregate principal amount of Senior Secured First Lien Term B-1 Loans due 2031 (the “New Term Loans”) were issued, the proceeds of which were used, along with the proceeds of the Notes, to repay in full all term loans previously outstanding under the Credit Agreement. Additionally, the Amended Credit Agreement provides an increase in its senior secured first lien revolving credit facility from $250.0 million to $300.0 million and an extension of the maturity thereof to three years after the Amendment Effective Date.

The New Term Loans will bear interest, at the Company’s election, at either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50%, (c) term SOFR for a borrowing with an interest period of one month plus 1.00% and (d) 1.00%, plus, in each case, 1.75%, or (ii) the greater of (x) term SOFR for the interest period in effect and (y) 0%, plus, in each case, 2.75%. The New Term Loans will mature on the seventh anniversary of the Amendment Effective Date and amortize in annual installments equal to 1.0% of the original aggregate principal amount of the New Term Loans. The New Term Loans are also subject to contingent principal payments based on excess cash flow and certain other triggering events.

Indenture

On June 21, 2024, VFH and Valor Co-Issuer, Inc., a subsidiary of Virtu Financial, (the “Co-Issuer”) completed the offering of $500.0 million aggregate principal amount of 7.50% senior secured first lien notes due 2031 (the “Notes”). The Notes were issued under an Indenture, dated as of June 21, 2024 (the “Indenture”), among the VFH, the Co-Issuer, Virtu Financial and the subsidiary guarantors party thereto, and U.S. Bank Trust Company, National Association, as the trustee and collateral agent. The Notes mature on June 15, 2031. Interest on the Notes accrues at 7.50% per annum, payable every six months through maturity on each June 15 and December 15, beginning on December 15, 2024. We refer to VFH and the Co-Issuer together as, the “Issuers.”

Amended and Restated 2015 Management Incentive Plan

The Company’s Board of Directors and stockholders adopted the 2015 Management Incentive Plan, which became effective upon consummation of the Company’s IPO and was subsequently amended and restated following receipt of approval from the Company’s stockholders on June 30, 2017 (the “Amended and Restated 2015 Management Incentive Plan”). The Amended and Restated 2015 Management Incentive Plan provides for the grant of stock options, restricted stock units, and other awards based on an aggregate of 16,000,000 shares of Class A Common Stock, par value $0.00001 per share (the “Class A Common Stock”), subject to additional sublimits, including limits on the total option grant to any one participant in a single year and the total performance award to any one participant in a single year. On April 23, 2020, the Company’s Board of Directors adopted an amendment to the Company’s Amended and Restated 2015 Management Incentive Plan in order to increase the number of shares of the Company’s Class A Common Stock reserved for issuance, and in respect of which awards may be granted under the Amended and Restated 2015 Plan from 16,000,000 to an aggregate of 21,000,000 shares of Class A Common Stock. On April 22, 2022, the Company’s Board of Directors adopted another amendment to the Company’s Amended and Restated 2015 Management Incentive Plan to increase the number of shares to an aggregate of 26,000,000 shares of Class A Common Stock and the amendment was approved by the Company’s shareholders at the Company’s annual meeting of shareholders on June 2, 2022.

In connection with the IPO, non-qualified stock options to purchase 9,228,000 shares were granted at the IPO per share price, each of which vested in equal annual installments over a period of four years from the grant date and expire not later than 10 years from the grant date. Subsequent to the IPO and through September 30, 2024, options to purchase 1,646,500 shares in the aggregate were forfeited and 6,555,519 options were exercised. The fair value of the stock option grants was determined through the application of the Black-Scholes-Merton model and was recognized on a straight-line basis over the vesting period.

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Parent Company Financial Information

There are no material differences between our condensed consolidated financial statements and the financial statements of Virtu Financial except as follows: (i) cash and cash equivalents reflected on our Condensed Consolidated Statements of Financial Condition as of September 30, 2024 in the amount of $50.7 million; (ii) deferred tax assets reflected on our Condensed Consolidated Statements of Financial Condition as of September 30, 2024 in the amount of $118.9 million and tax receivable agreement obligation in the amount of $196.3 million, in each case as described in greater detail in Note 5 “Tax Receivable Agreements” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q; (iii) a portion of the member’s equity of Virtu Financial is represented as noncontrolling interest on our Condensed Consolidated Statements of Financial Condition as of September 30, 2024; and (iv) provision for corporate income tax in the amount of $18.3 million and $53.2 million reflected on our Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024, respectively.

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Components of Our Results of Operations

The following table shows our i) Total revenue, ii) Total operating expenses, and iii) Income before income taxes and noncontrolling interest by segment for the three and nine months ended September 30, 2024 and 2023:

(in thousands)Three Months Ended September 30,Nine Months Ended September 30,
Market Making2024202320242023
Total revenue$576,660 $517,351 $1,667,450 $1,421,522 
Total operating expenses451,104 387,099 1,270,400 1,123,418 
Income before income taxes and noncontrolling interest125,556 130,252 397,050 298,104 
Execution Services
Total revenue125,727 112,453 370,575 340,045 
Total operating expenses107,452 104,639 327,457 323,334 
Income before income taxes and noncontrolling interest18,275 7,814 43,118 16,711 
Corporate
Total revenue4,453 360 4,639 (4,171)
Total operating expenses1,124 321 2,442 2,307 
Income before income taxes and noncontrolling interest3,329 39 2,197 (6,478)
Consolidated
Total revenue706,840 630,164 2,042,664 1,757,396 
Total operating expenses559,680 492,059 1,600,299 1,449,059 
Income before income taxes and noncontrolling interest$147,160 $138,105 $442,365 $308,337 

The following table shows our results of operations for the three and nine months ended September 30, 2024 and 2023:


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Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Revenues:
Trading income, net$443,997 $316,085 $1,278,487 $1,034,764 
Interest and dividends income125,229 127,693 338,287 307,916 
Commissions, net and technology services131,621 110,276 376,333 341,223 
Other, net5,993 76,110 49,557 73,493 
Total revenue706,840 630,164 2,042,664 1,757,396 
Operating Expenses:
Brokerage, exchange, clearance fees and payments for order flow, net176,745 123,245 467,331 391,238 
Communication and data processing59,601 57,066 177,110 170,837 
Employee compensation and payroll taxes107,646 97,221 314,185 296,214 
Interest and dividends expense136,070 132,802 385,791 342,896 
Operations and administrative24,939 22,416 69,346 72,204 
Depreciation and amortization16,486 15,815 48,640 47,076 
Amortization of purchased intangibles and acquired capitalized software11,848 15,967 38,688 48,007 
Termination of office leases17 364 50 314 
Debt issue cost related to debt refinancing, prepayment and commitment fees1,767 1,796 27,740 5,744 
Transaction advisory fees and expenses69 6 264 30 
Financing interest expense on long-term borrowings24,492 25,361 71,154 74,499 
Total operating expenses559,680 492,059 1,600,299 1,449,059 
Income before income taxes and noncontrolling interest147,160 138,105 442,365 308,337 
Provision for income taxes28,137 20,512 83,917 51,117 
Net income$119,023 $117,593 $358,448 $257,220 
Selected Operating Margins
GAAP Net income Margin (1)16.8 %18.7 %17.5 %14.6 %
(1)Calculated by dividing Net income by Total revenue.

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Net income available to stockholders and basic and diluted earnings per share are presented below:
 Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except for share or per share data)2024202320242023
Net income$119,023 $117,593 $358,448 $257,220 
Noncontrolling interest(59,071)(55,678)(176,093)(120,722)
Net income available for common stockholders$59,952 $61,915 $182,355 $136,498 
Earnings per share
Basic$0.65 $0.63 $1.95 $1.36 
Diluted$0.64 $0.63 $1.95 $1.36 
Weighted average common shares outstanding
Basic87,152,658 93,408,537 88,093,082 95,376,590 
Diluted87,536,847 93,408,537 88,340,592 95,376,590 
Total Revenues

Revenues are generated through market marking activities, commissions and fees on execution services activities, which include recurring subscriptions on workflow technology and analytic products. The majority of our revenues are generated through market making activities, which are recorded as Trading income, net and Interest and dividends income. Commissions and fees are derived from commissions charged for trade executions in client execution services. Recurring revenues are primarily derived from workflow technology connectivity fees generated for matching client orders, and analytics services to select third parties. Revenues from connectivity fees are recognized and billed to clients on a monthly basis. Revenues from commissions attributable to analytic products under bundled arrangements are recognized over the course of the year as the performance obligations for those analytics products are satisfied.

Trading income, net. Trading income, net represents revenue earned from bid/ask spreads. Trading income is generated in the normal course of our market making activities and is typically proportional to the level of trading activity, or volumes, and bid/ask spreads in the asset classes we serve. Our trading income is highly diversified by asset class and geography and comprises small amounts earned on millions of trades on various exchanges. Our trading income, net, results from gains and losses associated with trading strategies, which are designed to capture small bid/ask spreads, while hedging risks. Trading income, net, accounted for 63% and 59% of our total revenues for the nine months ended September 30, 2024 and 2023, respectively.

Interest and dividends income. Our market making activities require us to hold securities on a regular basis, and we generate revenues in the form of interest and dividends income from these securities. Interest is also earned on securities borrowed from other market participants pursuant to collateralized financing arrangements and on cash held by brokers. Dividends income arises from holding market making positions over dates on which dividends are paid to shareholders of record.

Commissions, net and technology services. We earn revenues on transactions for which we charge explicit commissions, which include the majority of our institutional client orders. Commissions and fees are primarily affected by changes in our equities, fixed income and futures transaction volumes with institutional clients, which vary based on client relationships; changes in commission rates; client experience on the various platforms; level of volume-based fees from providing liquidity to other trading venues; and the level of our soft dollar and commission recapture activity. Client commission fees are charged for client trades executed by us on behalf of third-party broker-dealers and other financial institutions. Revenue is recognized on a trade date basis, which is the point at which the performance obligation to the customer is satisfied, based on the trade being executed. In addition, we offer workflow technology and analytics services to select third parties. Revenues are derived from fees generated by matching sell-side and buy-side clients orders, and from analytic products delivered to the clients.

Other, net. We have interests in multiple strategic investments and telecommunications joint ventures (“JVs”). We record our pro-rata share of our JVs’ earnings or losses within Other, net, while fees related to the use of communication services provided by the JVs are recorded within Communications and data processing. 
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We have a noncontrolling investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), a proprietary trading system based in Tokyo. In connection with the investment, we issued bonds to certain affiliates of JNX and used the proceeds to partially finance the transaction. Revenues or losses are recognized due to the changes in fair value of the investment or fluctuations in Japanese Yen conversion rates within Other, net.

Other, net can also include gains on sales of strategic investments and businesses, as well as revenues from service agreements related to the sale of businesses.

Operating Expenses

Brokerage, exchange, clearance fees and payments for order flow, net. Brokerage, exchange, clearance fees and payments for order flow are our most significant expenses, which include the direct expenses of executing and clearing transactions that we consummate in the course of our market making activities. Brokerage, exchange, clearance fees and payments for order flow primarily consist of fees charged by third parties for executing, processing and settling trades. These fees generally increase and decrease in direct correlation with the level of our trading activity. Execution fees are paid primarily to exchanges and venues where we trade. Clearance fees are paid to clearing houses and clearing agents. Payments for order flow represent payments to broker-dealer clients, in the normal course of business, for directing their order flow in U.S. equities to the Company. Rebates based on volume discounts, credits or payments received from exchanges or other marketplaces are netted against brokerage, exchange, clearance fees and payments for order flow.

Communication and data processing. Communication and data processing represent primarily fixed expenses for data center co-location, network lines and connectivity for our trading centers and co-location facilities. Communications expense consists primarily of the cost of voice and data telecommunication lines supporting our business, including connectivity to data centers, exchanges, markets and liquidity pools around the world, and data processing expense consists primarily of market data subscription fees that we pay to third parties to receive price quotes and related information.

Employee compensation and payroll taxes. Employee compensation and payroll taxes include employee salaries, cash and non-cash incentive compensation, employee benefits, payroll taxes, severance and other employee related costs. Employee compensation and payroll taxes also includes non-cash compensation expenses with respect to restricted stock units and restricted stock awards pursuant to the Amended and Restated 2015 Management Incentive Plan and Class A Common Stock underlying certain awards assumed pursuant to the Amended and Restated ITG 2007 Equity Plan.

Interest and dividends expense. We incur interest expense from loaning certain equity securities in the general course of our market making activities pursuant to collateralized lending transactions. Typically, dividends expense is incurred when a dividend is paid on securities sold short.

Operations and administrative. Operations and administrative expense represents occupancy, recruiting, travel and related expense, professional fees and other expenses.

Depreciation and amortization. Depreciation and amortization expense results from the depreciation of fixed assets and leased equipment, such as computing and communications hardware, as well as amortization of leasehold improvements and capitalized in-house software development. We depreciate our computer hardware and related software, office hardware and furniture and fixtures on a straight-line basis over a period of 3 to 7 years based on the estimated useful life of the underlying asset, and we amortize our capitalized software development costs on a straight-line basis over a period of 1.5 to 3 years, which represents the estimated useful lives of the underlying software. We amortize leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the term of the lease.

Amortization of purchased intangibles and acquired capitalized software. Amortization of purchased intangibles and acquired capitalized software represents the amortization of finite lived intangible assets acquired in connection with the Acquisition of KCG and the ITG Acquisition. These assets are amortized over their useful lives, ranging from 1 to 15 years, except for certain assets which were categorized as having indefinite useful lives.

Termination of office leases. Termination of office leases represents the write-off expense related to certain office space we ceased use of as part of the effort to integrate and consolidate office space. The aggregate write-off amount includes the impairment of operating lease right-of-use assets, leasehold improvements and fixed assets, and dilapidation charges.

Debt issue cost related to debt refinancing, prepayment and commitment fees. As a result of the refinancing or early termination of our long-term borrowings, we accelerate the capitalized debt issue cost and the discount on the term loan that
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would otherwise be amortized or accreted over the life of the term loan. Premium paid in connection with retiring outstanding bonds, and commitment fees paid for lines of credit are also included in this category.

Transaction advisory fees and expenses. Transaction advisory fees and expenses primarily reflect professional fees incurred by us in connection with one or more acquisitions or dispositions.

Financing interest expense on long-term borrowings. Financing interest expense reflects interest accrued on outstanding indebtedness under our long-term borrowing arrangements.

Provision for income taxes

We are subject to U.S. federal, state and local income tax at the rate applicable to corporations less the rate attributable to the noncontrolling interest in Virtu Financial. Our non-U.S. operations are also subject to foreign income tax at the applicable corporate rates.

Our effective tax rate is subject to significant variation due to several factors, including variability in our pre-tax and taxable income and loss and the jurisdictions to which they relate, changes in how we do business, acquisitions and investments, audit-related developments, tax law developments (including changes in statutes, regulations, case law, and administrative practices), and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. Our effective tax rate may also be impacted by changes in the portion of income that is attributable to the noncontrolling interest.

We regularly assess whether it is more likely than not that we will realize our deferred tax assets in each taxing jurisdiction in which we operate. In performing this assessment with respect to each jurisdiction, we review all available evidence, including actual and expected future earnings, capital gains, and investment in such jurisdiction, the carry-forward periods available to us for tax reporting purposes, and other relevant factors. See Note 14 “Income Taxes” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for additional information.

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Non-GAAP Financial Measures and Other Items

To supplement our Condensed Consolidated Financial Statements presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”), we use the following non-U.S. GAAP (“Non-GAAP”) financial measures of financial performance:

•“Adjusted Net Trading Income”, which is the amount of revenue we generate from our market making activities, or Trading income, net, plus Commissions, net and technology services, plus Interest and dividends income, less direct costs associated with those revenues, including Brokerage, exchange, clearance fees and payments for order flow, net, and Interest and dividends expense. We also disclose Adjusted Net Trading Income by segment, including daily averages. Management believes that Adjusted Net Trading Income is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
•“EBITDA”, which measures our operating performance by adjusting Net Income to exclude Financing interest expense on long-term borrowings, Debt issue cost related to debt refinancing, prepayment, and commitment fees, Depreciation and amortization, Amortization of purchased intangibles and acquired capitalized software, and Income tax expense, and “Adjusted EBITDA”, which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share-based compensation and other expenses, which includes reserves for legal matters, and Other, net, which includes gains and losses from strategic investments, the sales of businesses, and other income.
•“Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items, and other non-cash items, assuming that all vested and unvested Virtu Financial Units have been exchanged for Class A Common Stock, and applying an effective tax rate, which was approximately 24%.
•Operating Margins, which are calculated by dividing net income, EBITDA, and Adjusted EBITDA by Adjusted Net Trading Income.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS, and Operating Margins (collectively, the “Company's Non-GAAP Measures”) are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. In addition, the Company's Non-GAAP Measures or similar non-GAAP financial measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of the Company's Non-GAAP Measures provides useful information to investors regarding our results of operations and cash flows because they assist both investors and management in analyzing and benchmarking the performance and value of our business. The Company's Non-GAAP Measures provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our Credit Agreement contains covenants and other tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS, and Operating Margins differently, and as a result the Company's Non-GAAP Measures may not be directly comparable to those of other companies. Although we use the Company's Non-GAAP Measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

The Company's Non-GAAP Measures should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of the Company's Non-GAAP Measures should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. The Company's Non-GAAP Measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

•they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
•our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
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•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
•they are not adjusted for all non-cash income or expense items that are reflected in our consolidated statements of cash flows;
•they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
•they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

Because of these limitations, the Company's Non-GAAP Measures are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using the Company's Non-GAAP Measures along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include operating Net Income, cash flows from operations and cash flow data. See below a reconciliation of each of the Company's Non-GAAP Measures to the most directly comparable U.S. GAAP measure.

The following table reconciles the Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and Operating Margins for the three and nine months ended September 30, 2024 and 2023.

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2024202320242023
Reconciliation of Trading income, net to Adjusted Net Trading Income
Trading income, net$443,997 $316,085 $1,278,487 $1,034,764 
Interest and dividends income125,229 127,693 338,287 307,916 
Commissions, net and technology services131,621 110,276 376,333 341,223 
Brokerage, exchange, clearance fees and payments for order flow, net(176,745)(123,245)(467,331)(391,238)
Interest and dividends expense(136,070)(132,802)(385,791)(342,896)
Adjusted Net Trading Income$388,032 $298,007 $1,139,985 $949,769 
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income$119,023 $117,593 $358,448 $257,220 
Financing interest expense on long-term borrowings24,492 25,361 71,154 74,499 
Debt issue cost related to debt refinancing, prepayment, and commitment fees1,767 1,796 27,740 5,744 
Depreciation and amortization16,486 15,815 48,640 47,076 
Amortization of purchased intangibles and acquired capitalized software11,848 15,967 38,688 48,007 
Provision for income taxes28,137 20,512 83,917 51,117 
EBITDA$201,753 $197,044 $628,587 $483,663 
Severance690 1,346 3,651 5,256 
Transaction advisory fees and expenses69 6 264 30 
Termination of office leases17 364 50 314 
Other(5,669)(74,599)(48,334)(67,396)
Share based compensation17,945 15,353 50,941 47,108 
Adjusted EBITDA$214,805 $139,514 $635,159 $468,975 
Selected Operating Margins
GAAP Net income Margin (1)16.8 %18.7 %17.5 %14.6 %
Non-GAAP Net income Margin (2)30.7 %39.5 %31.4 %27.1 %
EBITDA Margin (3)52.0 %66.1 %55.1 %50.9 %
Adjusted EBITDA Margin (4)55.4 %46.8 %55.7 %49.4 %
(1)Calculated by dividing Net Income by Total Revenue.
(2)Calculated by dividing Net Income by Adjusted Net Trading Income.
(3)Calculated by dividing EBITDA by Adjusted Net Trading Income.
(4)Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.
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The following table reconciles Net Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except share and per share data)2024202320242023
Reconciliation of Net Income to Normalized Adjusted Net Income
Net income$119,023 $117,593 $358,448 $257,220 
Provision for income taxes28,137 20,512 83,917 51,117 
Income before income taxes147,160 138,105 442,365 308,337 
Amortization of purchased intangibles and acquired capitalized software11,848 15,967 38,688 48,007 
Debt issue cost related to debt refinancing, prepayment, and commitment fees1,767 1,796 27,740 5,744 
Severance690 1,346 3,651 5,256 
Transaction advisory fees and expenses69 6 264 30 
Termination of office leases17 364 50 314 
Other(5,669)(74,599)(48,334)(67,396)
Share based compensation17,945 15,353 50,941 47,108 
Normalized Adjusted Net Income before income taxes173,827 98,338 515,365 347,400 
Normalized provision for income taxes (1)41,719 23,601 123,688 83,374 
Normalized Adjusted Net Income$132,108 $74,737 $391,677 $264,026 
Weighted Average Adjusted shares outstanding (2)161,709,295 167,164,049 162,322,747 169,101,067 
Basic earnings per share$0.65 $0.63 $1.95 $1.36 
Normalized Adjusted EPS$0.82 $0.45 $2.41 $1.56 
(1)Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
(2)Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from the dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan and the Amended and Restated ITG 2007 Equity Plan during the three and nine months ended September 30, 2024 and 2023.

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The following tables reconcile Trading income, net to Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024
(in thousands)Market MakingExecution ServicesCorporateTotal
Trading income, net$440,442 $3,555 $— $443,997 
Commissions, net and technology services12,721 118,900 — 131,621 
Interest and dividends income122,065 3,164 — 125,229 
Brokerage, exchange, clearance fees and payments for order flow, net(152,316)(24,429)— (176,745)
Interest and dividends expense(134,912)(1,158)— (136,070)
Adjusted Net Trading Income$288,000 $100,032 $— $388,032 
Three Months Ended September 30, 2023
(in thousands)Market MakingExecution ServicesCorporateTotal
Trading income, net$310,523 $5,562 $— $316,085 
Commissions, net and technology services6,343 103,933 — 110,276 
Interest and dividends income124,803 2,890 — 127,693 
Brokerage, exchange, clearance fees and payments for order flow, net(101,077)(22,168)— (123,245)
Interest and dividends expense(132,523)(279)— (132,802)
Adjusted Net Trading Income$208,069 $89,938 $— $298,007 
Nine Months Ended September 30, 2024
(in thousands)Market MakingExecution ServicesCorporateTotal
Trading income, net$1,264,214 $14,273 $— $1,278,487 
Commissions, net and technology services29,203 347,130 — 376,333 
Interest and dividends income330,178 8,109 — 338,287 
Brokerage, exchange, clearance fees and payments for order flow, net(394,154)(73,177)— (467,331)
Interest and dividends expense(382,200)(3,591)— (385,791)
Adjusted Net Trading Income$847,241 $292,744 $— $1,139,985 
Nine Months Ended September 30, 2023
(in thousands)Market MakingExecution ServicesCorporateTotal
Trading income, net$1,021,179 $13,585 $— $1,034,764 
Commissions, net and technology services22,677 318,546 — 341,223 
Interest and dividends income300,086 7,830 — 307,916 
Brokerage, exchange, clearance fees and payments for order flow, net(323,868)(67,370)— (391,238)
Interest and dividends expense(340,954)(1,942)— (342,896)
Adjusted Net Trading Income$679,120 $270,649 $— $949,769 
The following table shows our Adjusted Net Trading Income and average daily Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023:
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Three Months Ended September 30,
Adjusted Net Trading Income by Segment (in thousands):20242023% Change
Market Making$288,000 $208,069 38.4%
Execution Services100,032 89,938 11.2%
Adjusted Net Trading Income$388,032 $298,007 30.2%
Three Months Ended September 30,
Average Daily Adjusted Net Trading Income by Segment (in thousands):20242023% Change
Market Making$4,500 $3,303 36.3%
Execution Services1,563 1,428 9.5%
Average Daily Adjusted Net Trading Income$6,063 $4,731 29.8%
Nine Months Ended September 30,
Adjusted Net Trading Income by Segment (in thousands):20242023% Change
Market Making$847,241 $679,120 24.8%
Execution Services292,744 270,649 8.2%
Adjusted Net Trading Income$1,139,985 $949,769 20.0%
Nine Months Ended September 30,
Average Daily Adjusted Net Trading Income by Segment (in thousands):20242023% Change
Market Making$4,507 $3,632 24.1%
Execution Services1,557 1,447 7.6%
Average Daily Adjusted Net Trading Income$6,064 $5,079 19.6%

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Total Revenues

Our total revenues increased $76.6 million, or 12.2%, to $706.8 million for the three months ended September 30, 2024, compared to $630.2 million for the three months ended September 30, 2023. The increase was primarily driven by an increase of $127.9 million in Trading income, net due to higher trading volumes and increased opportunities across global markets and an increase of $21.3 million in Commissions, net and technology services due to strengthened institutional engagement, offset by a decrease of $70.1 million in Other, net, as a result of gains on settlement fund recoveries received during the three months ended September 30, 2023.

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The following table shows total revenues by segment for the three months ended September 30, 2024 and 2023.
Three Months Ended September 30,
(in thousands, except for percentage)20242023% Change
Market Making
Trading income, net$440,442 $310,523 41.8%
Interest and dividends income122,065 124,803 (2.2)%
Commissions, net and technology services12,721 6,343 100.6%
Other, net 1,432 75,682 (98.1)%
Total revenues from Market Making $576,660 $517,351 11.5%
Execution Services
Trading income, net$3,555 $5,562 (36.1)%
Interest and dividends income3,164 2,890 9.5%
Commissions, net and technology services118,900 103,933 14.4%
Other, net 108 68 58.8%
Total revenues from Execution Services $125,727 $112,453 11.8%
Corporate
Other, net $4,453 $360 NM
Total revenues from Corporate$4,453 $360 NM
Consolidated
Trading income, net$443,997 $316,085 40.5%
Interest and dividends income125,229 127,693 (1.9)%
Commissions, net and technology services131,621 110,276 19.4%
Other, net 5,993 76,110 (92.1)%
Total revenues$706,840 $630,164 12.2%

Trading income, net. Trading income, net was primarily earned by our Market Making segment. Trading income, net increased $127.9 million, or 40.5% to $444.0 million for the three months ended September 30, 2024, compared to $316.1 million for the three months ended September 30, 2023. The increase was largely a result of higher trading volumes and increased opportunities across global markets during the three months ended September 30, 2024 compared to the same period in 2023. Rather than analyzing trading income, net, in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income, together with Interest and dividends income, Interest and dividends expense, Commissions, net and technology services and Brokerage, exchange, clearance fees and payments for order flow, net, each of which is described below.

Interest and dividends income. Interest and dividends income was primarily earned by our Market Making segment. Interest and dividends income decreased $2.5 million, or 2.0%, to $125.2 million for the three months ended September 30, 2024, compared to $127.7 million for the three months ended September 30, 2023. This decrease was primarily attributable to a decrease in interest income earned on cash collateral posted as part of securities borrowing transactions driven by lower interest rates for the period compared to the same period during the prior year. As indicated above, rather than analyzing interest and dividends income in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income.

Commissions, net and technology services. Commissions, net and technology services revenues were primarily earned by our Execution Services segment. Commissions, net and technology services revenues increased $21.3 million, or 19.3%, to $131.6 million for the three months ended September 30, 2024, compared to $110.3 million for the three months ended September 30, 2023. This increase was driven by higher client volumes and increasing institutional engagement compared to the same period in 2023. As indicated above, rather than analyzing interest and dividends income in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income.

Other, net. Other, net decreased $70.1 million, to $6.0 million for the three months ended September 30, 2024, compared to $76.1 million for the three months ended September 30, 2023. The three months ended September 30, 2023 included gains on settlement fund recoveries in which we are eligible to participate based on our transactions in the applicable products.

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Adjusted Net Trading Income

Adjusted Net Trading Income, which is a non-GAAP measure, increased $90.0 million, or 30.2%, to $388.0 million for the three months ended September 30, 2024, compared to $298.0 million for the three months ended September 30, 2023. This increase was primarily attributable to higher Trading income, net due to higher trading volumes and increased opportunities during the three months ended September 30, 2024 compared to the same period in 2023, as noted above, partially offset by higher Brokerage, exchange, clearance fees and payments for order flow, net as described below. Average daily Adjusted Net Trading Income increased $1.4 million, or 29.8%, to $6.1 million for the three months ended September 30, 2024, compared to $4.7 million for the three months ended September 30, 2023. For a full description of Adjusted Net Trading Income and a reconciliation of Adjusted Net Trading Income to trading income, net, see “Non-GAAP Financial Measures and Other Items” in this Item 2. “Management's Discussion and Analysis of Financial Condition and Results of Operations.”

Operating Expenses

Our operating expenses increased $67.6 million, or 13.7%, to $559.7 million for the three months ended September 30, 2024, compared to $492.1 million for the three months ended September 30, 2023. The increase in operating expenses is primarily due to an increase in Brokerage, exchange, clearance fees and payments for order flow, net, described in more detail below.

Brokerage, exchange, clearance fees and payments for order flow, net. Brokerage exchange, clearance fees and payments for order flow, net, increased $53.5 million, or 43.4%, to $176.7 million for the three months ended September 30, 2024, compared to $123.2 million for the three months ended September 30, 2023. These costs vary period to period based upon the level and composition of our trading activities. We evaluate this category representing direct costs associated with transacting business, in the broader context of our Adjusted Net Trading Income.

Communication and data processing. Communication and data processing expense increased $2.5 million, or 4.4%, to $59.6 million for the three months ended September 30, 2024, compared to $57.1 million for the three months ended September 30, 2023. This increase was primarily due to increased spending on market data and colocation services.

Employee compensation and payroll taxes. Employee compensation and payroll taxes increased $10.4 million, or 10.7%, to $107.6 million for the three months ended September 30, 2024, compared to $97.2 million for the three months ended September 30, 2023. The increase in compensation levels was primarily attributable to an increase in accrued incentive compensation, which is recorded at management’s discretion and is generally accrued in connection with the overall level of profitability on a year-to-date basis, as well as the anticipated mix of cash and stock-based awards.

We have capitalized and therefore excluded employee compensation and benefits related to software development of $9.3 million and $9.7 million for the three months ended September 30, 2024, and 2023, respectively.

Interest and dividends expense. Interest and dividends expense increased $3.3 million, or 2.5%, to $136.1 million for the three months ended September 30, 2024, compared to $132.8 million for the three months ended September 30, 2023. This increase was primarily attributable to increased borrowing activities for the period compared to the same period during the prior year. As indicated above, rather than analyzing interest and dividends expense in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income.

Operations and administrative. Operations and administrative expense increased $2.5 million, or 11.2%, to $24.9 million for the three months ended September 30, 2024, compared to $22.4 million for the three months ended September 30, 2023. This increase was primarily driven by an increase in professional expense, as well as less favorable foreign exchange rate movements during the period.

Depreciation and amortization. Depreciation and amortization increased $0.7 million, or 4.4%, to $16.5 million for the three months ended September 30, 2024, compared to $15.8 million for the three months ended September 30, 2023. The increase was driven primarily by an increase in amortization of leased equipment compared to the same period in 2023.

Amortization of purchased intangibles and acquired capitalized software. Amortization of purchased intangibles and acquired capitalized software decreased $4.2 million, or 26.3%, to $11.8 million for the three months ended September 30, 2024, compared to $16.0 million for the three months ended September 30, 2023. This decrease was due to certain intangible assets being fully amortized during 2023.

Termination of office leases. Termination of office leases was insignificant for the three months ended September 30, 2024 and September 30, 2023. These expenses, when incurred, are related to the impairment of lease right-of-use assets,
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leasehold improvements and fixed assets for certain abandoned or vacated office space. There were no significant lease terminations in either period.

Debt issue cost related to debt refinancing, prepayment and commitment fees. Expense from debt issue cost related to debt refinancing, prepayment and commitment fees remained consistent at $1.8 million for the three months ended September 30, 2024 and 2023. Refer to Note 9 “Borrowings” in Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for more details on our borrowing arrangements.

Transaction advisory fees and expenses. Transaction advisory fees and expenses were insignificant for both the three months ended September 30, 2024, and September 30, 2023. These expenses, when incurred, are primarily in relation to our strategic investment portfolio.

Financing interest expense on long-term borrowings. Financing interest expense on long-term borrowings decreased $0.9 million, or 3.5%, to $24.5 million for the three months ended September 30, 2024, compared to $25.4 million for the three months ended September 30, 2023.The decrease was attributable to the amortization of the amounts in AOCI related to the interest rate swaps terminated in December 2023 as well as lower overall interest rates as a result of rate cuts and our debt refinancing described in Note 9 “Borrowings”.

Provision for income taxes

We incur corporate tax at the U.S. federal income tax rate on our taxable income, as adjusted for noncontrolling interest in Virtu Financial. Our income tax expense reflects such U.S. federal income tax as well as taxes payable by certain of our non-U.S. subsidiaries. Our provision for income taxes and effective tax rates were $28.1 million and 19.1% for the three months ended September 30, 2024, compared to $20.5 million and 14.9% for the three months ended September 30, 2023.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Total Revenues

Our total revenues increased $285.3 million, or 16.2%, to $2,042.7 million for the nine months ended September 30, 2024, compared to $1,757.4 million for the nine months ended September 30, 2023. This increase was primarily attributable to an increase of $243.7 million in Trading income, net due to higher trading volumes and increased opportunities across global markets and an increase of $35.1 million in Commissions, net and technology services driven by strengthened institutional engagement during the period during the nine months ended September 30, 2024 compared to the same period in 2023.

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The following table shows the total revenues by segment for the nine months ended September 30, 2024 and 2023.

Nine Months Ended September 30,
(in thousands, except for percentage)20242023% Change
Market Making
Trading income, net$1,264,214 $1,021,179 23.8%
Interest and dividends income330,178 300,086 10.0%
Commissions, net and technology services29,203 22,677 28.8%
Other, net43,855 77,580 (43.5)%
Total revenues from Market Making$1,667,450 $1,421,522 17.3%
Execution Services
Trading income, net$14,273 $13,585 5.1%
Interest and dividends income8,109 7,830 3.6%
Commissions, net and technology services347,130 318,546 9.0%
Other, net1,063 84 NM
Total revenues from Execution Services$370,575 $340,045 9.0%
Corporate
Other, net$4,639 $(4,171)NM
Total revenues from Corporate$4,639 $(4,171)NM
Consolidated
Trading income, net$1,278,487 $1,034,764 23.6%
Interest and dividends income338,287 307,916 9.9%
Commissions, net and technology services376,333 341,223 10.3%
Other, net49,557 73,493 (32.6)%
Total revenues$2,042,664 $1,757,396 16.2%

Trading income, net. Trading income, net was primarily earned by our Market Making segment. Trading income, net, increased $243.7 million, or 23.6%, to $1,278.5 million for the nine months ended September 30, 2024, compared to $1,034.8 million for the nine months ended September 30, 2023. The increase was largely a result of higher trading volumes and increased opportunities across global markets during the nine months ended September 30, 2024 compared to the same period in 2023. Rather than analyzing Trading income, net, in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income, together with Interest and dividends income, Interest and dividends expense, Commissions, net and technology services and Brokerage, exchange, clearance fees and payments for order flow, net, each of which are described below.

Interest and dividends income. Interest and dividends income was primarily earned by our Market Making segment. Interest and dividends income increased $30.4 million, or 9.9%, to $338.3 million for the nine months ended September 30, 2024, compared to $307.9 million for the nine months ended September 30, 2023. This increase was primarily attributable to an increase in interest income earned on cash collateral posted as part of securities borrowed transactions, driven by higher interest rates for the period compared to the same period during the prior year, despite the rate cuts during the three months ended September 30, 2024. As indicated above, rather than analyzing interest and dividends income in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income.

Commissions, net and technology services. Commissions, net and technology services revenues were primarily earned by our Execution Services segment. Commissions, net and technology services revenues increased $35.1 million, or 10.3%, to $376.3 million for the nine months ended September 30, 2024, compared to $341.2 million for the nine months ended September 30, 2023. This increase was driven by relatively higher client volumes and increasing institutional engagement compared to the same period in 2023. As indicated above, rather than analyzing commission income in isolation, we evaluate it in the broader context of our Adjusted Net Trading Income.

Other, net. Other, net decreased $23.9 million, or 32.5%, to $49.6 million for the nine months ended September 30, 2024, compared to $73.5 million for the nine months ended September 30, 2023. The income for the nine months ended
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September 30, 2024 and 2023 were primarily related to gains on settlement fund recoveries in which we are eligible to participate based on our transactions in the applicable products.

Adjusted Net Trading Income

Adjusted Net Trading Income, which is a non-GAAP measure, increased $190.2 million, or 20.0%, to $1,140.0 million for the nine months ended September 30, 2024, compared to $949.8 million for the nine months ended September 30, 2023. This increase was primarily attributable to higher Trading income, net, as noted above, partially offset by higher Brokerage, exchange, clearance fees and payments for order flow, net and Interest and dividends expense as described below. Average daily Adjusted Net Trading Income increased $1.0 million, or 19.6%, to $6.1 million for the nine months ended September 30, 2024, compared to $5.1 million for the nine months ended September 30, 2023. The number of trading days was 188 days for the nine months ended September 30, 2024, compared to 187 days for the nine months ended September 30, 2023. For a full description of Adjusted Net Trading Income and a reconciliation of Adjusted Net Trading Income to trading income, net, see “Non-GAAP Financial Measures and Other Items” in this “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations”.

Operating Expenses

Our operating expenses increased $151.2 million, or 10.4%, to $1,600.3 million for the nine months ended September 30, 2024, compared to $1,449.1 million for the nine months ended September 30, 2023. The increase was primarily driven by increase in Brokerage, exchange, clearance fees and payments for order flow, net, Interest and dividends expense, and Debt issue cost related to debt refinancing, prepayment and commitment fees.

Brokerage, exchange, clearance fees and payments for order flow, net. Brokerage, exchange, clearance fees and payments for order flow, net, increased $76.1 million, or 19.5%, to $467.3 million for the nine months ended September 30, 2024, compared to $391.2 million for the nine months ended September 30, 2023. These costs vary period to period based upon the level and composition of our trading activities. We evaluate this category, representing direct costs associated with transacting our business, in the broader context of our Adjusted Net Trading Income.

Communication and data processing. Communication and data processing expense increased $6.3 million, or 3.7%, to $177.1 million for the nine months ended September 30, 2024, compared to $170.8 million for the nine months ended September 30, 2023. This increase was primarily attributable to increased connectivity spending on market data, subscription, and communication networks maintained by our joint ventures.

Employee compensation and payroll taxes. Employee compensation and payroll taxes increased $18.0 million, or 6.1%, to $314.2 million for the nine months ended September 30, 2024, compared to $296.2 million for the nine months ended September 30, 2023. The increase in compensation levels was primarily attributable to an increase in accrued incentive compensation, which is recorded at management’s discretion and is generally accrued in connection with the overall level of profitability on a year-to-date basis, as well as the anticipated mix of cash and stock-based awards.

We have capitalized and therefore excluded employee compensation and benefits related to software development of $30.1 million and $29.5 million for the nine months ended September 30, 2024 and 2023, respectively.

Interest and dividends expense. Interest and dividends expense increased $42.9 million, or 12.5%, to $385.8 million for the nine months ended September 30, 2024, compared to $342.9 million for the nine months ended September 30, 2023. This increase was primarily attributable to higher interest expense incurred on cash collateral received driven by higher interest rates, as well as an increase in securities lending transactions and higher dividends expense with respect to securities sold, not yet purchased for the period compared to the same period during the prior year. As indicated above, rather than analyzing interest and dividends expense in isolation, we generally evaluate it in the broader context of our Adjusted Net Trading Income.

Operations and administrative. Operations and administrative expense decreased $2.9 million, or 4.0%, to $69.3 million for the nine months ended September 30, 2024, compared to $72.2 million for the nine months ended September 30, 2023. The decrease was primarily driven by a decrease in regulatory and occupancy expenses.

Depreciation and amortization. Depreciation and amortization increased $1.5 million, or 3.2%, to $48.6 million for the nine months ended September 30, 2024, compared to $47.1 million for the nine months ended September 30, 2023. This increase was driven primarily by increased amortization of capitalized software and depreciation of leased equipment compared to the prior period.

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Amortization of purchased intangibles and acquired capitalized software. Amortization of purchased intangibles and acquired capitalized software decreased $9.3 million, or 19.4%, to $38.7 million for the nine months ended September 30, 2024, compared to $48.0 million for the nine months ended September 30, 2023. This decrease was primarily attributable to certain intangible assets being fully amortized in 2023.

Termination of office leases. Termination of office leases was insignificant for the nine months ended September 30, 2024 and September 30, 2023. These expenses, when incurred, are related to the impairment of lease right-of-use assets, leasehold improvements and fixed assets for certain abandoned or vacated office space. There were no significant lease terminations in either period.

Debt issue cost related to debt refinancing, prepayment and commitment fees. Expense from debt issue cost related to debt refinancing, prepayment and commitment fees increased $22.0 million, or 386.0%, to $27.7 million for the nine months ended September 30, 2024, compared to $5.7 million for the nine months ended September 30, 2023. The increase was primarily driven by the acceleration of our capitalized debt issue cost and discount on our previous term loan as a result of refinancing during the nine months ended September 30, 2024. See Note 9 “Borrowings” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for additional details.

Transaction advisory fees and expenses. Transaction advisory fees and expenses were insignificant for the nine months ended September 30, 2024 and September 30, 2023. These expenses, when incurred, are primarily in relation to our strategic investment portfolio.

Financing interest expense on long term borrowings. Financing interest expense on long-term borrowings decreased $3.3 million, or 4.4%, to $71.2 million for the nine months ended September 30, 2024, compared to $74.5 million for the nine months ended September 30, 2023. This decrease was attributable to the decrease in outstanding principal as a result of the voluntary prepayment in December 2023, the amortization of the amounts in AOCI related to the interest rate swaps terminated in December 2023, as well as a lower overall interest rate after our debt refinancing described in Note 9 “Borrowings”.

Provision for income taxes

We incur corporate tax at the U.S. federal income tax rate on our taxable income, as adjusted for noncontrolling interest in Virtu Financial. Our income tax expense reflects such U.S. federal income tax as well as taxes payable by certain of our non-U.S. subsidiaries. Our provision for income taxes and effective tax rate was $83.9 million and 19.0% for the nine months ended September 30, 2024, compared to a provision for income taxes and effective tax rate of $51.1 million and 16.6% for the nine months ended September 30, 2023.

Liquidity and Capital Resources

General

As of September 30, 2024, we had $701.4 million in Cash and cash equivalents. This balance is maintained primarily to support operating activities, for capital expenditures and for short-term access to liquidity, and for other general corporate purposes. As of September 30, 2024, we had borrowings under our prime brokerage credit facilities of approximately $143.9 million, borrowings under our broker dealer facilities of $110.0 million, and long-term debt outstanding in an aggregate principal amount of approximately $1,769.4 million.

The majority of our trading assets consist of exchange-listed marketable securities, which are marked-to-market daily, and collateralized receivables from broker-dealers and clearing organizations arising from proprietary securities transactions. Collateralized receivables consist primarily of securities borrowed, receivables from clearing houses for settlement of securities transactions and, to a lesser extent, securities purchased under agreements to resell. We actively manage our liquidity, and we maintain significant borrowing facilities through the securities lending markets and with banks and prime brokers. We have continually received the benefit of uncommitted margin financing from our prime brokers globally. These margin facilities are secured by securities in accounts held at the prime brokers. For purposes of providing additional liquidity, we maintain a committed credit facility and an uncommitted credit facility for our wholly-owned U.S. broker-dealer subsidiary, as discussed in Note 9 “Borrowings” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q.

Short-term Liquidity and Capital Resources

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Based on our current level of operations, we believe our cash flows from operations, available cash and cash equivalents, and available borrowings under our broker-dealer credit facilities will be adequate to meet our future liquidity needs for the next twelve months. We anticipate that our primary upcoming cash and liquidity needs will be increased due to margin requirements from increased trading activities in markets where we currently provide liquidity and in new markets into which we plan to expand. We manage and monitor our margin and liquidity needs on a real-time basis and can adjust our requirements both intra-day and inter-day, as required.

We expect our principal sources of future liquidity to come from cash flows provided by operating activities and financing activities. Certain of our cash balances are insured by the Federal Deposit Insurance Corporation, generally up to $250,000 per account but without a cap under certain conditions. From time to time these cash balances may exceed insured limits, but we select financial institutions deemed highly credit worthy to minimize risk. We consider highly liquid investments with original maturities of less than three months, when acquired, to be cash equivalents.

Long-term Liquidity and Capital Resources

Our principal demand for funds beyond the next twelve months will be payments on our long-term debt, operating lease payments, common stock repurchases under our share repurchase program, and dividend payments. Based on our current level of operations, we believe our cash flow from operations, and ability to raise funding, will be sufficient to fund capital demands.

Tax Receivable Agreements

Generally, we are required under the tax receivable agreements entered into in connection with our IPO to make payments to certain direct or indirect equity holders of Virtu Financial that are generally equal to 85% of the applicable cash tax savings, if any, that we realize as a result of favorable tax attributes that are available to us as a result of the IPO and certain reorganization transactions undertaken in connection therewith, for exchanges of membership interests for Class A Common Stock or Class B Common Stock and payments made under the tax receivable agreements. We will retain the remaining 15% of any such cash tax savings. We expect that future payments to certain direct or indirect equity holders of Virtu Financial described in Note 5 “Tax Receivable Agreements” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q are expected to range from approximately $0.1 million to $22.0 million per year over the next 15 years. Such payments will occur only after we have filed our U.S. federal and state income tax returns and realized the cash tax savings from the favorable tax attributes. We made payments totaling $114.0 million from February 2017 through September 2024. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. We currently expect to fund these payments from realized cash tax savings from the favorable tax attributes.

Under the tax receivable agreements, as a result of certain types of transactions and other factors, including a transaction resulting in a change of control, we may also be required to make payments to certain direct or indirect equity holders of Virtu Financial in amounts equal to the present value of future payments we are obligated to make under the tax receivable agreements. We would expect any acceleration of these payments to be funded from the realized favorable tax attributes. However, if the payments under the tax receivable agreements are accelerated, we may be required to raise additional debt or equity to fund such payments. To the extent that we are unable to make payments under the tax receivable agreements for any reason (including because our Credit Agreement restricts the ability of our subsidiaries to make distributions to us) such payments will be deferred and will accrue interest until paid.

Regulatory Capital Requirements

Our principal U.S. subsidiary, Virtu Americas LLC (“VAL”) is subject to separate regulation and capital requirements in the U.S. and other jurisdictions. VAL is a registered U.S. broker-dealer, and its primary regulators include the SEC and the Financial Industry Regulatory Authority (“FINRA”). In June 2023 our U.S. subsidiary RFQ-hub Americas LLC (“RAL”, as described in Note 3 “Business Held for Sale”, which is currently held for sale) became a registered U.S. broker-dealer and as such is subject to regulation and capital requirements from its primary regulators, the SEC and FINRA.

The SEC and FINRA impose rules that require notification when regulatory capital falls below certain pre-defined criteria. These rules also dictate the ratio of debt-to-equity in the regulatory capital composition of a broker-dealer and constrain the ability of a broker-dealer to expand its business under certain circumstances. If a firm fails to maintain the required regulatory capital, it may be subject to suspension or revocation of registration by the applicable regulatory agency, and suspension or expulsion by these regulators could ultimately lead to the Company’s liquidation. Additionally, certain applicable rules impose requirements that may have the effect of prohibiting a broker-dealer from distributing or withdrawing capital and requiring prior notice to and/or approval from the SEC and FINRA for certain capital withdrawals. VAL is also subject to
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rules set forth by NYSE and is required to maintain a certain level of capital in connection with the operation of its designated market maker business.

Our Canadian subsidiaries, Virtu Canada Corp (f/k/a Virtu ITG Canada Corp.) and Virtu Financial Canada ULC, are subject to regulatory capital requirements and periodic requirements to report their regulatory capital and submit other regulatory reports set forth by the Canadian Investment Regulatory Organization. Our Irish subsidiaries, Virtu Financial Ireland Limited (“VFIL”) and Virtu Europe Trading Limited (“VETL”) (f/k/a Virtu ITG Europe Limited) are regulated by the Central Bank of Ireland as Investment Firms and in accordance with European Union law are required to maintain a minimum amount of regulatory capital based upon their positions, financial conditions, and other factors. In addition to periodic requirements to report their regulatory capital and submit other regulatory reports, VFIL and VETL are required to obtain consent prior to receiving capital contributions or making capital distributions from their regulatory capital. Failure to comply with their regulatory capital requirements could result in regulatory sanction or revocation of their regulatory license. Virtu ITG UK Limited is regulated by the Financial Conduct Authority in the United Kingdom and is subject to similar prudential capital requirements. Virtu ITG Australia Limited, and Virtu ITG Hong Kong Limited are also subject to local regulatory capital requirements and are regulated by the Australian Securities and Investments Commission, the Securities and Futures Commission of Hong Kong, respectively. Virtu ITG Singapore Pte. Limited and Virtu Financial Singapore Pte. Ltd. have similar regulatory requirements and are regulated by the Monetary Authority of Singapore.

See Note 20 “Regulatory Requirement” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for a discussion of regulatory capital requirements of our regulated subsidiaries.

Broker Dealer Credit Facilities, Short-Term Bank Loans, and Prime Brokerage Credit Facilities

We maintain various broker-dealer facilities and short-term credit facilities as part of our daily trading operations. See Note 9 “Borrowings” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for details on our various credit facilities. As of September 30, 2024, there was an outstanding principal balance on our broker-dealer facilities of $110.0 million, and the outstanding aggregate short-term credit facilities with various prime brokers and other financial institutions from which the Company receives execution or clearing services was approximately $143.9 million, which was netted within Receivables from broker-dealers and clearing organizations on the Condensed Consolidated Statements of Financial Condition of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q.

Credit Agreement

On January 13, 2022 (the “Credit Agreement Closing Date”), Virtu Financial, VFH Parent LLC, a Delaware limited liability company and a subsidiary of Virtu Financial (“VFH”), entered into the Credit Agreement, with the lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent and JPMorgan Chase bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, Barclays Bank plc, Jefferies Finance LLC, BMO Capital Markets Corp., and CIBC World Markets Corp., as joint lead arrangers and bookrunners (the “Credit Agreement”). On the Credit Agreement Closing Date, VFH and Virtu Financial entered into the Credit Agreement. The Credit Agreement provides (i) a senior secured first lien term loan in an aggregate principal amount of $1,800.0 million, drawn in its entirety on the Credit Agreement Closing Date, the proceeds of which were used by VFH to repay all amounts outstanding under the Acquisition Credit Agreement, to pay fees and expenses in connection therewith, to fund share repurchases under the Company’s repurchase program and for general corporate purposes, and (ii) a $250.0 million senior secured first lien revolving facility to VFH, with a $20.0 million letter of credit subfacility and a $20.0 million swingline subfacility.

The term loan borrowings and revolver borrowings under the Credit Agreement bear interest at a per annum rate equal to, at the Company’s election, either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50%, (c) an adjusted term Secured Overnight Financing Rate (“SOFR”) rate with an interest period of one month plus 1.00% and (d)(1) in the case of term loan borrowings, 1.50% and (2) in the case of revolver borrowings, 1.00%, plus, (x) in the case of term loan borrowings, 2.00% and (y) in the case of revolver borrowings, 1.50% or (ii) the greater of (a) an adjusted term SOFR rate for the interest period in effect and (b) (1) in the case of term loan borrowings, 0.50% and (2) in the case of revolver borrowings, 0.00%, plus, (x) in the case of term loan borrowings, 3.00% and (y) in the case of revolver borrowings, 2.50%. In addition, a commitment fee accrues at a rate of 0.50% per annum on the average daily unused amount of the revolving facility, with step-downs to 0.375% and 0.25% per annum based on VFH’s first lien leverage ratio, and is payable quarterly in arrears.

The revolving facility under the Credit Agreement is subject to a springing net first lien leverage ratio which may spring into effect as of the last day of a fiscal quarter if usage of the aggregate revolving commitments exceeds a specified level as of such date. VFH is also subject to contingent principal prepayments based on excess cash flow and certain other triggering events. Borrowings under the Credit Agreement are guaranteed by Virtu Financial and VFH’s material non-regulated domestic
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restricted subsidiaries and secured by substantially all of the assets of VFH and the guarantors, in each case, subject to certain exceptions.

The Credit Agreement contains certain customary covenants and events of default, including relating to a change of control. If an event of default occurs and is continuing, the lenders under the Credit Agreement will be entitled to take various actions, including the acceleration of amounts outstanding under the Credit Agreement and all actions permitted to be taken by a secured creditor in respect of the collateral securing the obligations under the Credit Agreement.

In October 2019, the Company entered into a five-year $525.0 million floating-to-fixed interest rate swap agreement. In January 2020, the Company entered into a five-year $1,000.0 million floating-to-fixed interest rate swap agreement. These two interest rate swaps met the criteria to be considered and were designated as qualifying cash flow hedges under ASC 815 in the first quarter of 2020, and they effectively fixed interest payment obligations on $525.0 million and $1,000.0 million of principal under the Acquisition First Lien Term Loan Facility at rates of 4.3% and 4.4% through September 2024 and January 2025, respectively, based on the interest rates set forth in the Acquisition Credit Agreement. In April 2021, each of the swap agreements described above was novated to another counterparty and amended in connection with such novation. The amendments included certain changes to collateral posting obligations and also had the effect of increasing the effective fixed interest payment obligations to rates of 4.5%, with respect to the earlier maturing swap arrangement, and 4.6% with respect to the later maturing swap arrangement. In January 2022, in order to align the swap agreements with the Credit Agreement, the Company amended each of the swap agreements to align the floating rate term of such swap agreements to SOFR. The effective fixed interest payment obligations remained at 4.5%, with respect to the earlier maturing swap arrangement, and 4.6% with respect to the later maturing swap arrangement.

In December 2023, the Company terminated the two interest rate swap arrangements and received $55.8 million in proceeds from the counterparty. The Company therefore dedesignated those cash flow hedges under ASC 815, and the amounts in AOCI related to the terminated swaps are amortized through interest expense. The Company simultaneously entered into a two-year $1,525.0 million floating-to-fixed interest rate swap agreement with the same counterparty (the “December 2023 Swap”). The December 2023 Swap met the criteria to be considered and was designated as a qualifying cash flow hedge under ASC 815 as of December 2023, and it effectively fixed interest payment obligations on $1,525.0 million of principal under the First Lien Term Loan Facility at a rate of 7.5% through November 2025, based on the interest rates set forth in the Credit Agreement.

On June 21, 2024 (the “Amendment Effective Date”), the Company entered into Amendment No. 1 to the Credit Agreement (the “Amended Credit Agreement”) and completed the issuance of the Notes (as defined below). Pursuant to the Amended Credit Agreement, $1,245.0 million in aggregate principal amount of senior secured first lien term B-1 loans due 2031 (the “New Term Loans”) were issued, the proceeds of which were used, along with the proceeds of the Notes, to repay in full all term loans previously outstanding under the Credit Agreement. Additionally, the Amended Credit Agreement provides an increase in its senior secured first lien revolving credit facility from $250.0 million to $300.0 million and an extension of the maturity thereof to three years after the Amendment Effective Date.

The New Term Loans will bear interest, at the Company’s election, at either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50%, (c) term SOFR for a borrowing with an interest period of one month plus 1.00% and (d) 1.00%, plus, in each case, 1.75%, or (ii) the greater of (x) term SOFR for the interest period in effect and (y) 0%, plus, in each case, 2.75%. The New Term Loans will mature on the seventh anniversary of the Amendment Effective Date and amortize in annual installments equal to 1.0% of the original aggregate principal amount of the New Term Loans. The New Term Loans are also subject to contingent principal payments based on excess cash flow and certain other triggering events.

As of September 30, 2024, $1,245.0 million was outstanding under the term loans. We were in compliance with all applicable covenants under the Credit Agreement as of September 30, 2024.

In connection with its entry into the Amended Credit Agreement and the associated reduction in term loan balance, the Company partially terminated the December 2023 Swap, reducing the notional amount thereof from $1,525.0 million to $1,075.0 million and received $2.0 million in proceeds from the counterparty. The cash flow hedge was proportionally dedesignated under ASC 815 as of June 21, 2024. As a result of the partial dedesignation, we recognized a gain of $5.7 million in Other Income. The current interest rate swap effectively fixed interest payment obligations on the $1,075.0 million of principal of the New Term Loans at a rate of 7.17% through November 2025, based on the interest rates set forth in the Amended Credit Agreement.

Senior Secured First Lien Notes

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On June 21, 2024, VFH and Valor Co-Issuer, Inc., a subsidiary of Virtu Financial, (the “Co-Issuer”) completed the offering of $500.0 million aggregate principal amount of 7.50% senior secured first lien notes due 2031 (the “Notes”). The Notes were issued under an Indenture, dated as of June 21, 2024 (the “Indenture”), among the VFH, the Co-Issuer, Virtu Financial and the subsidiary guarantors party thereto, and U.S. Bank Trust Company, National Association, as the trustee and collateral agent. The Notes mature on June 15, 2031. Interest on the Notes accrues at 7.50% per annum, payable every six months through maturity on each June 15 and December 15, beginning on December 15, 2024. We refer to VFH and the Co-Issuer together as, the “Issuers.”

The Notes and the related guarantees are secured by first-priority perfected liens on substantially all of the Issuers’ and guarantors’ existing and future assets, subject to certain exceptions, including all material personal property, a pledge of the
capital stock of the Issuers, the guarantors (other than Virtu Financial) and the direct subsidiaries of the Issuers and the guarantors and 100% of the non-voting capital stock and up to 65.0% of the voting capital stock of any now-owned or later acquired foreign subsidiaries that are directly owned by the Issuers or any of the guarantors, which assets also secure
obligations under the Amended and Restated Credit Agreement on a first-priority basis.

The Indenture imposes certain limitations on our ability to (i) incur or guarantee additional indebtedness or issue preferred stock; (ii) pay dividends, make certain investments and make repayments on indebtedness that is subordinated in right of payment to the Notes and make other “restricted payments”; (iii) create liens on their assets to secure debt; (iv) enter into transactions with affiliates; (v) merge, consolidate or amalgamate with another company; (vi) transfer and sell assets; and (vii) permit restrictions on the payment of dividends by Virtu Financial’s subsidiaries. The Indenture also contains customary events of default, including, among others, payment defaults related to the failure to pay principal or interest on Notes, covenant defaults, final maturity default or cross-acceleration with respect to material indebtedness and certain bankruptcy events.

Prior to June 15, 2027, we may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, if any, to (but not including) the date of redemption, plus an applicable “make whole” premium.

Prior to June 15, 2027, we may also redeem up to 40% of the aggregate principal amount of the Notes at a redemption price equal to 107.500% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the date of redemption with the net cash proceeds from certain equity offerings.

Prior to June 15, 2027, we may also, on one or more occasions, redeem during each successive twelve-month period following June 21, 2024 up to 10% of the aggregate original principal amount of notes, at a redemption price equal to 103% of the principal amount of notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date.

On or after June 15, 2027, we may redeem some or all of the Notes, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to (but not including) the date of redemption, if redeemed during the 12-month period beginning on June 15 of the years indicated below:

PeriodPercentage
2027103.750%
2028101.875%
2029 and thereafter
100.000%

Upon the occurrence of specified change of control events as defined in the Indenture, we must offer to repurchase the Notes at 101% of the principal amount, plus accrued and unpaid interest, if any, to (but excluding) the purchase date.

Cash Flows

Our main sources of liquidity are cash flow from the operations of our subsidiaries, our broker-dealer credit facilities (as described above), margin financing provided by our prime brokers and cash on hand.

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The table below summarizes our primary sources and uses of cash for the nine months ended September 30, 2024 and 2023.

Nine Months Ended September 30,
Net cash provided by (used in):20242023
Operating activities$207,509 $143,691 
Investing activities(55,659)(70,463)
Financing activities(272,827)(385,285)
Effect of exchange rate changes on cash and cash equivalents3,745 170 
Net increase (decrease) in cash and cash equivalents$(117,232)$(311,887)

Operating Activities

Net cash provided by operating activities was $207.5 million for the nine months ended September 30, 2024, compared to net cash provided by operating activities of $143.7 million for the nine months ended September 30, 2023. The change in net cash provided by operating activities was primarily attributable to higher net income as well as movements in noncash adjustments for the nine months ended September 30, 2024 compared to the prior period.

Investing Activities

Net cash used in investing activities, which includes cash used with respect to capitalized software and cash used in the acquisition of property and equipment, was $55.7 million for the nine months ended September 30, 2024, compared with net cash used in investing activities of $70.5 million for the nine months ended September 30, 2023. The change in net cash used in investing activities was primarily attributable to decreases in acquisition of property and equipment in the nine months ended September 30, 2024.

Financing Activities

Net cash used in financing activities was $272.8 million for the nine months ended September 30, 2024, compared to Net cash used in financing activities of $385.3 million for the nine months ended September 30, 2023. The cash used in financing activities for the nine months ended September 30, 2024 was primarily attributable to $1,741.9 million of net proceeds from long-term borrowings and $129.6 million of net proceeds from short-term borrowings, offset by $1,727.0 million of repayment of our previous long-term borrowings, $247.9 million in dividends to stockholders and distributions made to noncontrolling interests, and $132.9 million in purchases of treasury stock. The cash used in financing activities of $385.3 million during the same period of 2023 primarily reflects $251.9 million net dividends to stockholders and distributions to noncontrolling interests, and $184.4 million purchase of treasury stock, partially offset by net proceeds of $96.1 million from short-term borrowings.

Share Repurchase Program

On November 6, 2020, the Company's Board of Directors authorized a new share repurchase program of up to $100.0 million in Class A common stock and Virtu Financial Units by December 31, 2021. Subsequently, the Company's Board of Directors authorized expansions of the share repurchase program on February 11, 2021 to $170.0 million, on May 4, 2021 to $470.0 million (and extended the duration through May 4, 2022), on November 3, 2021 to $1,220.0 million (and extended the duration through November 3, 2023, and on November 2, 2023, further extended the program through December 31, 2024), and on April 24, 2024 to $1,720 million (and extended the duration through April 24, 2026).

The share repurchase program authorizes the Company to repurchase shares from time to time in open market transactions, privately negotiated transactions or by other means. Repurchases are also permitted to be made under Rule 10b5-1 plans. The timing and amount of repurchase transactions are determined by the Company's management based on its evaluation of market conditions, share price, cash sources, legal requirements and other factors. From the inception of the program through September 30, 2024, the Company repurchased approximately 48.7 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,224.7 million. As of September 30, 2024, the Company has approximately of $495.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

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Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the applicable reporting period. Critical accounting policies are those that are the most important portrayal of our financial condition, results of operations and cash flows, and that require our most difficult, subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain.

While our significant accounting policies are described in more detail in the notes to our consolidated financial statements, our most critical accounting policies are discussed below. In applying such policies, we must use some amounts that are based upon our informed judgments and best estimates. Estimates, by their nature, are based upon judgments and available information. The estimates that we make are based upon historical factors, current circumstances and the experience and judgment of management. We evaluate our assumptions and estimates on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

Valuation of Financial Instruments

Due to the nature of our operations, substantially all of our financial instrument assets, comprised of financial instruments owned, securities purchased under agreements to resell, and receivables from brokers, dealers and clearing organizations are carried at fair value based on published market prices and are marked to market daily, or are assets which are short-term in nature and are reflected at amounts approximating fair value. Similarly, all of our financial instrument liabilities that arise from financial instruments sold but not yet purchased, securities sold under agreements to repurchase, securities loaned, and payables to brokers, dealers and clearing organizations are short-term in nature and are reported at quoted market prices or at amounts approximating fair value.

Fair value is defined as the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories based on inputs:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not active and financial instruments for which all significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable

The fair values for substantially all of our financial instruments owned and financial instruments sold but not yet purchased are based on observable prices and inputs and are classified in levels 1 and 2 of the fair value hierarchy. Instruments categorized within level 3 of the fair value hierarchy are those which require one or more significant inputs that are not observable. Estimating the fair value of level 3 financial instruments requires judgments to be made. Due to the relative immateriality of our financial instruments classified as level 3, we do not believe that a significant change to the inputs underlying the fair value of our level 3 financial instruments would have a material impact on our Condensed Consolidated Financial Statements. See Note 10 “Financial Assets and Liabilities” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for further information about fair value measurements.

Revenue Recognition

Trading Income, Net

Trading income, net, consists of trading gains and losses that are recorded on a trade date basis and reported on a net basis. Trading income, net, is comprised of changes in fair value of financial instruments owned and financial instruments sold, not yet purchased assets and liabilities (i.e., unrealized gains and losses) and realized gains and losses on equities, fixed income securities, currencies and commodities.

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Interest and Dividends Income/Interest and Dividends Expense

Interest income and interest expense are accrued in accordance with contractual rates. Interest income consists of income earned on collateralized financing arrangements and on cash held by brokers and banks. Interest expense includes interest expense from collateralized transactions, margin and related short-term lending facilities. Dividends are recorded on the ex-dividend date, and interest is recognized on an accrual basis.

Commissions, Net and Technology Services

Commissions, net, which primarily comprise commissions earned on institutional client orders, are recorded on a trade date basis, which is the point at which the performance obligation to the customer is satisfied. Under a commission management program, we allow institutional clients to allocate a portion of their gross commissions to pay for research and other services provided by third parties. As we act as an agent in these transactions, we record such expenses on a net basis within Commissions, net and technology services in the Condensed Consolidated Statements of Comprehensive Income.

Workflow technology revenues consist of order and trade execution management and order routing services we provide through our front-end workflow solutions and network capabilities.

We provide trade order routing from our execution management system (“EMS”) to our execution services offerings, with each trade order routed through the EMS representing a separate performance obligation, which is the trade data for that trade order routed, that is satisfied at a point in time. A portion of the commissions earned on the trade is then allocated to Workflow Technology based on the stand-alone selling price paid by third-party brokers for order routing. The remaining commission is allocated to Commissions, net using a residual allocation approach. Commissions earned are fixed and revenue is recognized on the trade date.

We participate in commission share arrangements, where trade orders are routed to third-party brokers from our EMS and our order management system (“OMS”). Commission share revenues from third-party brokers are generally fixed and revenue is recognized at a point in time on the trade date.

We also provide OMS and related software products and connectivity services to customers and recognize license fee revenues and monthly connectivity fees. License fee revenues, generated for the use of our OMS and other software products, are fixed and recognized at the point in time at which the customer is able to use and benefit from the license. Connectivity revenue is variable in nature, based on the number of live connections, and is recognized over time on a monthly basis using a time-based measure of progress.

Analytics revenues are earned from providing customers with analytics products and services, including trading and portfolio analytics tools. We provide analytics products and services to customers and recognize subscription fees, which are fixed for the contract term, based on when the products and services are delivered. Analytics services can be delivered either over time (when customers are provided with distinct ongoing access to analytics data) or at a point in time (when reports are only delivered to the customer on a periodic basis). Over time performance obligations are recognized using a time-based measure of progress on a monthly basis, since the analytics products and services are continually provided to the client. Point in time performance obligations are recognized when the analytics reports are delivered to the client.

Analytics products and services can also be paid for through variable bundled arrangements with trade execution services. Customers agree to pay for analytics products and services with commissions generated from trade execution services, and commissions are allocated to the analytics performance obligation(s) using:
(i)the commission value for each customer for the products and services it receives, which is priced using the value for similar stand-alone subscription arrangements; and
(ii)a calculated ratio of the commission value for the products and services relative to the total amount of commissions generated from the customer.

For these bundled commission arrangements, the allocated commissions to each analytics performance obligation are then recognized as revenue when the analytics product is delivered, either over time or at a point in time. These allocated commissions may be deferred if the allocated amount exceeds the amount recognizable based on delivery.

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Share-Based Compensation

We account for share-based compensation transactions with employees under the provisions of the Financial Accounting Standards Board's Accounting Standards Codification (“ASC”) 718, Compensation: Stock Compensation. Share-based compensation transactions with employees are measured based on the fair value of equity instruments issued.

Share-based awards issued for compensation in connection with or subsequent to the Reorganization Transactions and the IPO pursuant to our Amended and Restated 2015 Management Incentive Plan, and assumed pursuant to the Amended and Restated ITG 2007 Equity Plan, were in the form of stock options, Class A Common Stock, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). The fair value of the stock option grants is determined through the application of the Black-Scholes-Merton model. The fair value of the Class A Common Stock and RSUs is determined based on the volume weighted average price for the three days preceding the grant. With respect to the RSUs, we account for forfeitures as they occur. The fair value of RSAs is determined based on the closing price as of the date of grant. The fair value of share-based awards granted to employees is expensed based on the vesting conditions and is recognized on a straight-line basis over the vesting period, or, in the case of RSAs subject to performance conditions, from the date that achievement becomes probable through the remainder of the vesting period. The assessment of the performance condition becomes certain within the year of grant. At year end there is no future assessment that would affect grants with a performance condition. We record as treasury stock shares repurchased from employees for the purpose of settling tax liabilities incurred upon the issuance of common stock, the vesting of RSUs or the exercise of stock options.

Income Taxes

We conduct our business globally through a number of separate legal entities. Consequently, our effective tax rate is dependent upon the geographic distribution of our earnings or losses and the tax laws and regulations of each legal jurisdiction in which we operate.

Certain of our wholly owned subsidiaries are subject to income taxes in foreign jurisdictions. The provision for income tax is comprised of current tax and deferred tax. Current tax represents the tax on current year tax returns, using tax rates enacted at the balance sheet date. A deferred tax asset is recognized only to the extent that it is probable that future taxable income will be available against which the asset can be utilized.

We are currently subject to audit in various jurisdictions, and these jurisdictions may assess additional income tax liabilities against us. Developments in an audit, litigation, or the relevant laws, regulations, administrative practices, principles, and interpretations could have a material effect on our operating results or cash flows in the period or periods for which that development occurs, as well as for prior and subsequent periods. We recognize the tax benefit from an uncertain tax position in accordance with ASC 740, Income Taxes, only if it is more likely than not that the tax position will be sustained on examination by the applicable taxing authority, including resolution of the appeals or litigation processes, based on the technical merits of the position. The tax benefits recognized in the Condensed Consolidated Financial Statements from such a position are measured based on the largest benefit for each such position that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Many factors are considered when evaluating and estimating the tax positions and tax benefits. Such estimates involve interpretations of regulations, rulings, case law, etc. and are inherently complex. Our estimates may require periodic adjustments and may not accurately anticipate actual outcomes as resolution of income tax treatments in individual jurisdictions typically would not be known for several years after completion of any fiscal year. We believe the judgments and estimates discussed above are reasonable. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to losses or gains that could be material.

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Tax Receivable Agreements

We are required under the tax receivable agreements entered into in connection with our IPO to make payments to certain direct or indirect equity holders of Virtu Financial that are generally equal to 85% of the applicable cash tax savings, if any, that we realize as a result of favorable tax attributes that are available to us as a result of the Reorganization Transactions, for exchanges of membership interests for Class A Common Stock or Class B Common Stock and payments made under the tax receivable agreements. An exchange of membership interests by the Virtu Members for Class A Common Stock or Class B Common Stock (an “Exchange”) during the year will give rise to favorable tax attributes that may generate cash tax savings specific to the Exchange, to be realized over a specific period of time (generally 15 years). At each Exchange, we estimate the cumulative tax receivable agreement obligations to be reported on the consolidated financial statements. The tax attributes are computed as the difference between our basis in the partnership interest (“outside basis”) as compared to our share of the adjusted tax basis of partnership property (“inside basis”), at the time of each Exchange. The computation of inside basis requires judgments in estimating the components included in the inside basis as of the date of the Exchange (such as, cash received on hypothetical sale of assets, allocation of gain/loss at the time of the Exchange taking into account complex partnership tax rules). In addition, we estimate the period of time that may generate cash tax savings of such tax attributes and the realizability of the tax attributes.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the underlying net tangible and intangible assets of our acquisitions. Goodwill is not amortized but is assessed for impairment on an annual basis and between annual assessments whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill is assessed at the reporting unit level, which is defined as an operating segment or one level below the operating segment.

When assessing impairment, an entity may perform an initial qualitative assessment, under which it assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an entity shall assess relevant events and circumstances, including the following:
•general economic conditions;
•limitations on accessing capital;
•fluctuations in foreign exchange rates or other developments in equity and credit markets;
•industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (considered in both absolute terms and relative to peers), a change in the market for an entity’s products or services, or a regulatory or political development;
•cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows;
•overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods;
•other relevant entity-specific events such as changes in management, key personnel, strategy, or customers, contemplation of bankruptcy, or litigation.

If, after assessing the totality of such events or circumstances, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further goodwill impairment testing is necessary.

If further testing is necessary, the fair value of the reporting unit is compared to its carrying value; if the fair value of the reporting unit is less than its carrying value, a goodwill impairment loss is recorded, equal to the excess of the reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). Our estimate of goodwill impairment, if indicated based on results of the qualitative assessment, is highly dependent on our estimate of a reporting unit’s fair value.

We assess goodwill for impairment on an annual basis as of July 1st and on an interim basis when certain events or circumstances exist. In the impairment assessment as of July 1, 2024, we performed a qualitative assessment as described above for each reporting unit. No impairment of goodwill was identified.

Valuation of intangible assets involves the use of significant estimates and assumptions with respect to the timing and amounts of revenue growth rates, customer attrition rates, future tax rates, royalty rates, contributory asset charges, discount rate and the resulting cash flows. We amortize finite-lived intangible assets over their estimated useful lives. Our largest finite-lived intangible asset is customer relationships, which is being amortized over an estimated useful life of ten to twelve years. Had we used a shorter estimated useful life of seven years, the Company would have recorded an additional $4.0 million and
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$5.4 million of amortization expense for the three months ended September 30, 2024 and 2023, respectively, and an additional $14.8 million and $16.3 million for the nine months ended September 30, 2024 and 2023, respectively. We test finite-lived intangible assets for impairment when impairment indicators are present, and if impaired, they are written down to fair value.

Recent Accounting Pronouncements

For a discussion of recently issued accounting developments and their impact or potential impact on our condensed consolidated financial statements, see Note 2 “Summary of Significant Accounting Policies” of Part I Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

We are exposed to various market risks in the ordinary course of business. The risks primarily relate to changes in the value of financial instruments due to factors such as market prices, interest rates, and currency rates.

Our on-exchange market making activities are not dependent on the direction of any particular market and are designed to minimize capital at risk at any given time by limiting the notional size of our positions. Our on-exchange market making strategies involve continuously quoting two-sided markets in various financial instruments with the intention of profiting by capturing the spread between the bid and offer price. If another market participant executes against the strategy’s bid or offer by crossing the spread, the strategy will attempt to lock in a return by either exiting the position or hedging in one or more different correlated instruments that represent economically equivalent value to the primary instrument. Such primary or hedging instruments include but are not limited to securities and derivatives such as: common shares, exchange traded products, American Depositary Receipts (“ADRs”), options, bonds, futures, spot currencies and commodities. Substantially all of the financial instruments we trade are liquid and can be liquidated within a short time frame at low cost.

Our customer market making activities involve the taking of position risks. The risks at any point in time are limited by the notional size of positions as well as other factors. The overall portfolio risks are quantified using internal risk models and monitored by the Company's Chief Risk Officer, the independent risk group and senior management.

We use various proprietary risk management tools in managing our market risk on a continuous basis (including intraday). In order to minimize the likelihood of unintended activities by our market making strategies, if our risk management system detects a trading strategy generating revenues outside of our preset limits, it will freeze, or “lockdown”, that strategy and alert risk management personnel and management.

For working capital purposes, we invest in money market funds and maintain interest and non-interest bearing balances at banks and in our trading accounts with clearing brokers, which are classified as Cash and cash equivalents and Receivables from broker-dealers and clearing organizations, respectively, on the Condensed Consolidated Statements of Financial Condition. These financial instruments do not have maturity dates; the balances are short-term, which helps to mitigate our market risks. We also invest our working capital in short-term U.S. government securities, which are included in Financial instruments owned on the Condensed Consolidated Statements of Financial Condition. Our cash and cash equivalents held in foreign currencies are subject to the exposure of foreign currency fluctuations. These balances are monitored daily and are hedged or reduced when appropriate and therefore not material to our overall cash position.

In the normal course of business, we maintain inventories of exchange-listed and other equity securities, and to a lesser extent, fixed income securities and listed equity options. The fair value of these financial instruments at September 30, 2024 and December 31, 2023 was $7.2 billion and $7.4 billion, respectively, in long positions and $6.3 billion and $6.1 billion, respectively, in short positions. We also enter into futures contracts, which are recorded on our Condensed Consolidated Statements of Financial Condition within Receivable from brokers, dealers and clearing organizations or Payable to brokers, dealers and clearing organizations as applicable.

We calculate daily the potential losses that might arise from a series of different stress events. These include both single factor and multi factor shocks to asset prices based off both historical events and hypothetical scenarios. The stress calculations include a full recalculation of any option positions, non-linear positions and leverage. Senior management and the independent risk group carefully monitor the highest stress scenarios to help mitigate the risk of exposure to extreme events.

The purchase and sale of futures contracts requires margin deposits with a Futures Commission Merchant (“FCM”). The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other equity deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to the Company’s pro rata share of segregated customer funds available. It is possible that the recovery amount could be less than the total cash and other equity deposited.

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Interest Rate Risk, Derivative Instruments

In the normal course of business, we utilize derivative financial instruments in connection with our proprietary trading activities. We carry our trading derivative instruments at fair value with gains and losses included in Trading income, net, in the accompanying Condensed Consolidated Statements of Comprehensive Income. Fair value of derivatives that are freely tradable and listed on a national exchange is determined at their last sale price as of the last business day of the period. Since gains and losses are included in earnings, we have elected not to separately disclose gains and losses on derivative instruments, but instead to disclose gains and losses within trading revenue for both derivative and non-derivative instruments.

We also use derivative instruments for risk management purposes, including cash flow hedges used to manage interest rate risk on long-term borrowings and net investment hedges used to manage foreign exchange risk. We have entered into floating-to-fixed interest rate swap agreements in order to manage interest rate risk associated with our long-term debt obligations. Additionally, we may seek to reduce the impact of fluctuations in foreign exchange rates on our net investment in certain non-U.S. operations through the use of foreign currency forward contracts. For interest rate swap agreements and foreign currency forward contracts designated as hedges, we assess our risk management objectives and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively. The effectiveness of the hedge is assessed based on the overall changes in the fair value of the interest rate swaps or forward contracts. For instruments that meet the criteria to be considered hedging instruments under ASC 815, any gains or losses, to the extent effective, are included in Accumulated other comprehensive income on the Condensed Consolidated Statements of Financial Condition and Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income. The ineffective portion, if any, is recorded in Other, net on the Condensed Consolidated Statements of Comprehensive Income.

Futures Contracts. As part of our proprietary market making trading strategies, we use futures contracts to gain exposure to changes in values of various indices, commodities, interest rates or foreign currencies. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Upon entering into a futures contract, we are required to pledge to the broker an amount of cash, U.S. government securities or other assets equal to a certain percentage of the contract amount. Subsequent payments, known as variation margin, are made or received by us each day, depending on the daily fluctuations in the fair values of the underlying securities. We recognize a gain or loss equal to the daily variation margin.

Due from Broker-Dealers and Clearing Organizations. Management periodically evaluates our counterparty credit exposures to various brokers and clearing organizations with a view to limiting potential losses resulting from counterparty insolvency.

Foreign Currency Risk

As a result of our international market making and execution services activities and accumulated earnings in our foreign subsidiaries, our income and net worth are subject to fluctuation in foreign exchange rates. While we generate revenues in several currencies, the majority of our operating expenses are denominated in U.S. dollars. Therefore, depreciation in these other currencies against the U.S. dollar would negatively impact revenue upon translation to the U.S. dollar. The impact of any translation of our foreign denominated earnings to the U.S. dollar is mitigated, however, through the impact of daily hedging practices that are employed by the company.

Approximately 18.6% and 16.0% of our total revenues for the nine months ended September 30, 2024 and 2023, respectively, were denominated in non-U.S. dollar currencies. We estimate that a hypothetical 10% adverse change in the value of the U.S. dollar relative to our foreign denominated earnings would have resulted in decreases in total revenues of $38.0 million and $28.2 million for the nine months ended September 30, 2024 and 2023, respectively.

Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at period-end exchange rates. Income, expense and cash flow items are translated at average exchange rates prevailing during the period. The resulting currency translation adjustments are recorded as foreign exchange translation adjustment in our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Changes in Equity. Our primary currency translation exposures historically relate to net investments in subsidiaries having functional currencies denominated in the Euro, Pound Sterling, and Canadian dollar.

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Financial Instruments with Off Balance Sheet Risk

We enter into various transactions involving derivatives and other off-balance sheet financial instruments. These financial instruments include futures, forward contracts, swaps, and exchange-traded options. These derivative financial instruments are used to conduct trading activities and manage market risks and are, therefore, subject to varying degrees of market and credit risk. Derivative transactions are entered into for trading purposes or to economically hedge other positions or transactions.

Futures and forward contracts provide for delayed delivery of the underlying instrument. In situations where we write listed options, we receive a premium in exchange for giving the buyer the right to buy or sell the security at a future date at a contracted price. The contractual or notional amounts related to these financial instruments reflect the volume and activity and do not necessarily reflect the amounts at risk. Futures contracts are executed on an exchange, and cash settlement is made on a daily basis for market movements, typically with a central clearing house as the counterparty. Accordingly, futures contracts generally do not have credit risk. The credit risk for forward contracts, options, and swaps is limited to the unrealized market valuation gains recorded in the Condensed Consolidated Statements of Financial Condition. Market risk is substantially dependent upon the value of the underlying financial instruments and is affected by market forces, such as volatility and changes in interest and foreign exchange rates.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of September 30, 2024. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures were effective to ensure information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, with the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error and mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of controls.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions or because the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

Changes to Internal Control over Financial Reporting

No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during the three months ended September 30, 2024 that has or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II

ITEM 1. LEGAL PROCEEDINGS

The information required by this item is set forth in the “Legal Proceedings” section in Note 15 “Commitments, Contingencies and Guarantees” to the Company’s Condensed Consolidated Financial Statements included in Part I Item 1 “Financial Statements”, which is incorporated by reference herein.

ITEM 1A. RISK FACTORS

There have been no material changes to the Risk Factors described in Part I Item 1A. “Risk Factors” in our 2023 Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Pursuant to the exchange agreement (the “Exchange Agreement”) entered into on April 15, 2015 by and among the Company, Virtu Financial and holders of Virtu Financial Units, Virtu Financial Units (along with the corresponding shares of our Class C Common Stock or Class D Common Stock, as applicable) may be exchanged at any time for shares of our Class A Common Stock or Class B Common Stock, as applicable, on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. During nine months ended September 30, 2024, pursuant to the Exchange Agreement, certain current and former employees elected to exchange 31,097 units in Virtu Financial held directly or on their behalf by Virtu Employee Holdco LLC (“Employee Holdco”) on a one-for-one basis for shares of Class A Common Stock. The shares of our Class A Common Stock were issued in reliance on the registration exemption contained in Section 4(a)(2) of the Securities Act, on the basis that the transaction did not involve a public offering. No underwriters were involved in the transaction.

Total share repurchases for the three months ended September 30, 2024 were as follows:

PeriodTotal Number of Shares Purchased (1)Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsApproximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 1, 2024 - July 31, 2024
Class A Common Stock repurchases503,135 $24.56 503,135$531,304,828
August 1, 2024 - August 31, 2024
Class A Common Stock repurchases595,573 $29.62 538,369$515,305,083
September 1, 2024 - September 30, 2024
Class A Common Stock repurchases637,770 $31.36 637,770$495,305,427
Total Common Stock / Virtu Financial Unit repurchases1,738,327 $28.79 1,679.274$495,305,427
(1) Includes the repurchase of 57,204 shares from employees in order to satisfy statutory tax withholding requirements upon the net settlement of equity awards for the three months ended September 30, 2024.

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On November 6, 2020, the Company announced that the Board of Directors had authorized a new share repurchase program of up to $100.0 million in Class A common stock and Virtu Financial Units by December 31, 2021. On February 11, 2021, the Company announced that the Board of Directors had authorized the expansion of the program by an additional $70 million in Class A Common Stock and Virtu Financial Units. On May 4, 2021, the Company announced that the Board of Directors had authorized the expansion of the Company's share repurchase program, increasing the total authorized amount by $300 million to $470 million in Class A Common Stock and Virtu Financial Units and extending the duration of the program through May 4, 2022. On November 3, 2021 the Company announced that the Board of Directors had authorized the expansion of the program by an additional $750 million to $1,220 million and extending the duration of the program through November 3, 2023, which was subsequently extended through December 31, 2024. On April 24, 2024, the Company announced that the Board of Directors had authorized the expansion of the program by an additional $500 million to $1,720 million and extended the duration through April 24, 2026. The share repurchase program authorizes the Company to repurchase shares from time to time in open market transactions, privately negotiated transactions or by other means. Repurchases are also permitted to be made under Rule 10b5-1 plans. The timing and amount of repurchase transactions are determined by the Company's management based on its evaluation of market conditions, share price, cash sources, legal requirements and other factors. From the inception of the program through September 30, 2024, the Company repurchased approximately 48.7 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,224.7 million. As of September 30, 2024, the Company has approximately $495.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

During the three and nine months ended September 30, 2024, no director or “officer” (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K under the Exchange Act.

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ITEM 6. EXHIBITS
   
Exhibit Number    Description
3.1
3.2
31.1* 
31.2* 
32.1* 
32.2* 
101.INS* XBRL Instance Document
101.SCH* XBRL Taxonomy Extension Schema
101.CAL* XBRL Taxonomy Extension Calculation Linkbase
101.LAB* XBRL Taxonomy Extension Label Linkbase
101.PRE* XBRL Taxonomy Extension Presentation Linkbase
101.DEF* XBRL Taxonomy Extension Definition Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
*  Filed herewith.
† Management contract or compensatory plan or arrangement.

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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Virtu Financial, Inc.
DATE:October 28, 2024By:/s/ Douglas A. Cifu
Douglas A. Cifu
Chief Executive Officer
DATE:October 28, 2024By:
/s/ Cindy Lee
Cindy Lee
Chief Financial Officer
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