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美國
證券交易委員會
華盛頓特區20549
 
表格 10-Q 
（標記一）
 
☒ 根據1934年證券交易法第13或15（d）條季度報告
截至季度結束日期的財務報告2024年9月30日
或者
☐根據1934年證券交易所法案第13或15(d)條規定提交的過渡報告
過渡期從     到     
委員會檔案編號：001-37352
維積金融公司。
(根據其章程規定的註冊人準確名稱)
特拉華州32-0420206
（設立或組織的其他管轄區域）（納稅人識別號碼）
10019
1633 Broadway
紐約 紐約
，（主要行政辦公地址）(郵政編碼)
 
(212) 418-0100
(註冊人電話號碼，包括區號) 
在法案第12(b)條的規定下注冊的證券：
每一類的名稱交易標的在其上註冊的交易所的名稱
A類普通股，每股面值$0.00001VIRT納斯達克證券交易所 LLC
請勾選以下內容說明註冊人(1)在過去的12個月內(或其需要提交此類報告的較短期間)是否已提交1934年證券交易法第13或15(d)篇要求提交的所有報告，以及(2)在過去90天內是否已受到此類提交要求。 是 ☒ 否 ☐
請在以下勾選方框表示註冊人是否已在Regulation S-T Rule 405規定的前12個月(或在註冊人需要提交此類文件的較短期間內)提交了每個互動數據文件。是 ☒ 沒有 ☐
請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。
大型加速報告人
☒
加速文件提交人☐非加速文件提交人☐小型報表公司 ☐
  新興成長公司 ☐
 
如果是新興增長企業，請在選擇方框中標明是否選擇不使用根據證券法第13(a)條規定提供的任何新的或修訂的財務會計準則的延長過渡期來符合規定。 ☐
請勾選以下選項以指示註冊人是否爲外殼公司(根據交易所法規則12b-2定義)。是☐ 否 ☒
股票類別
2024年10月21日的普通股總股數
A類普通股，每股面值$0.0000185,953,825
C類普通股，每股面值$0.000018,575,052
D類普通股，每股面值$0.0000160,091,740
 
1
目錄




維爾圖金融公司及其子公司
10-Q表的指數
2024年9月30日結束的季度
      頁碼
編號
    
第一部分 -
  
    
  
    
  
  
  
  
  
    
 
    
 
    
 
    
  
    
 
    
 
    
 
    
 
    
 
    
 
    
 
    
  


1
目錄
第一部分

項目1.基本報表
2024年6月30日（未經審計）和2023年9月30日的簡明綜合資產負債表。
 
 頁碼
編號
 
  
  
  
  
2
目錄
Virtu Financial, Inc.及其附屬公司
未經審計的基本財務狀況綜述
（以千爲單位,股份數據除外）2020年9月30日
2024		12月31日
2023
資產
現金及現金等價物 $701,405 $820,436 
依法規定和其他限制或隔離的現金36,823 35,024 
證券借入2,301,690 1,722,440 
通過回購協議購買的證券708,773 1,512,114 
經紀商和結算組織應收款項（$41,837 和 $— 截至2024年9月30日和2023年12月31日的公允價值
1,194,193 737,724 
交易資產，按公允價值計量：
擁有的金融工具5,195,334 6,127,752 
擁有並質押的金融工具1,990,693 1,230,859 
應收客戶款169,565 106,245 
房地產、設備和資本化軟件（減去累計折舊$369,697 和 $367,779 截至2024年9月30日和2023年12月31日，分別)
93,899 100,365 
經營租賃權使用資產190,261 229,499 
商譽1,148,926 1,148,926 
無形資產（減去累計攤銷$416,677 和 $381,973 截至2024年9月30日和2023年12月31日，分別)
214,971 257,520 
遞延所得稅資產122,399 133,760 
持有待售業務的資產4,637 — 
其他資產 ($105,162 和 $84,521，按公允價值計量，分別截至2024年9月30日和2023年12月31日
327,137 303,720 
總資產$14,400,706 $14,466,384 
負債和權益
負債
短期借款$128,761 $— 
證券借貸2,109,164 1,329,446 
協議回購出售的證券1,045,811 1,795,994 
經紀商和清算組織的應付款（$88,318 和 $7,661，截至2024年9月30日和2023年12月31日的公允價值）
619,640 1,167,712 
應付客戶款項97,774 23,229 
按公允價值計量的交易負債：
已售出的金融工具，尚未購買6,335,171 6,071,352 
應稅款協議義務196,254 216,480 
應付賬款、應計費用及其他負債469,796 451,293 
經營租賃負債236,253 278,317 
長期借款1,741,543 1,727,205 
待售業務負債1,184 — 
負債合計12,981,351 13,061,028 
承諾和 contingencies（注 15）
Virtu Financial Inc.股東權益
每股面值$0.00001）, 授權 - 1,000,000,000和頁面。1,000,000,000 股份，已發行 - 137,223,462和頁面。134,901,037 股份，流通股 - 86,392,168和頁面。89,092,686 2024年9月30日和2023年12月31日的股份，分別
1 1 
B級普通股（面值$0.00001), Authorized — 175,000,000和頁面。175,000,000 shares, Issued and Outstanding — 0和頁面。0 2024年9月30日和2023年12月31日的股份，分別
— — 
Class C common stock (par value $0.00001), Authorized — 90,000,000和頁面。90,000,000 股份，已發行和待發行 — 8,575,052和頁面。8,607,998 2024年9月30日和2023年12月31日的股份，分別
— — 
D類普通股（面值 $0.00001）, 已授權 — 175,000,000和頁面。175,000,000 股份，已發行和待發行 — 60,091,740和頁面。60,091,740 2024年9月30日和2023年12月31日的股份，分別
1 1 
截至2024年3月31日和2023年12月31日，公司的庫藏股票分別有2,279,784股和2,693,653股。50,831,294和頁面。45,808,351 2024年9月30日和2023年12月31日的股份，分別
(1,282,210)(1,166,299)
額外實收資本1,415,956 1,351,574 
1,102.01,097,693 1,000,403 
3
目錄
Virtu Financial, Inc.及其附屬公司
基本報表的控件彙總財務狀況（未經審計）
（以千爲單位,股份數據除外）九月30日,
2024		12月31日,
2023
累計其他綜合收益(虧損)964 17,047 
Virtu Financial Inc.的股東權益合計1,232,405 1,202,727 
非控股權益186,950 202,629 
股東權益總計1,419,355 1,405,356 
負債和所有者權益總額$14,400,706 $14,466,384 
請查看附註的未經審計的簡明合併基本報表。
4
目錄
Virtu Financial, Inc.及其附屬公司
未經審計的簡化合並綜合收益表
 截至9月30日的三個月截至9月30日的九個月
(以千爲單位，除每股數據外)2024202320242023
營收：
交易收入淨額$443,997 $316,085 $1,278,487 $1,034,764 
利息和分紅收入125,229 127,693 338,287 307,916 
佣金淨額和科技服務131,621 110,276 376,333 341,223 
其他，淨額5,993 76,110 49,557 73,493 
總收入706,840 630,164 2,042,664 1,757,396 
營業費用：
券商、交易所、清算費用和訂單支付淨額176,745 123,245 467,331 391,238 
通信和數據處理59,601 57,066 177,110 170,837 
員工薪酬和工資稅107,646 97,221 314,185 296,214 
利息和分紅支出136,070 132,802 385,791 342,896 
運營和行政24,939 22,416 69,346 72,204 
折舊和攤銷16,486 15,815 48,640 47,076 
購買無形資產和購買資本化軟件的攤銷11,848 15,967 38,688 48,007 
終止辦公租賃合同17 364 50 314 
與債務再融資、提前償還和承諾費用相關的債務發行成本1,767 1,796 27,740 5,744 
交易諮詢費用和支出69 6 264 30 
長期借款的融資利息支出24,492 25,361 71,154 74,499 
營業費用總計559,680 492,059 1,600,299 1,449,059 
所得稅前收益和非控股權益147,160 138,105 442,365 308,337 
所得稅費用28,137 20,512 83,917 51,117 
淨利潤119,023 117,593 358,448 257,220 
非控股權益(59,071)(55,678)(176,093)(120,722)
普通股股東可用淨利潤$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 
加權平均流通股份
Basic87,152,658 93,408,537 88,093,082 95,376,590 
Diluted87,536,847 93,408,537 88,340,592 95,376,590 
淨利潤$119,023 $117,593 $358,448 $257,220 
其他綜合收益
匯率期貨翻譯調整，淨稅後6,835 (4,005)3,745 170 
未實現現金流量套期交易收益（損失）淨變動，淨稅後(19,568)(7,646)(30,931)(12,612)
綜合收益106,290 105,942 331,262 244,778 
少數股東應占綜合收益(54,083)(50,832)(164,990)(115,557)
歸屬於普通股股東的綜合收益$52,207 $55,110 $166,272 $129,221 
 
請查看附註的未經審計的簡明合併基本報表。
5
目錄
Virtu Financial, Inc.及其附屬公司
經過核對的綜合權益變動表（未經審核）
2024年和2023年截至9月30日的三個和九個月
A級普通股C類普通股D類普通股庫藏股資本公積金保留收益（累積赤字）累積其他綜合收益（損失）virtu financial inc股東權益總額非控股權益股東權益總額
(以千為單位，除分紅派息和股份及利息資料外)
股份金額股份金額股份金額股份金額金額
2023年12月31日餘額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 
股份報酬2,596,226 — — — — — — — 28,883 — — 28,883 — 28,883 
庫藏股購買(946,267)— — — — — (1,959,076)(35,889)— (16,013)— (51,902)— (51,902)
凈利潤— — — — — — — — — 55,817 — 55,817 55,491 111,308 
匯率期貨調整— — — — — — — — — — (2,037)(2,037)(1,489)(3,526)
現金流動價差對沖收益的淨變動— — — — — — — — — — 894 894 653 1,547 
分紅派息 ($0.24 virtu金融向非控股權益支付給予每股A類普通股和參與限制股份單位和限制股份獎勵的分紅派息
— — — — — — — — — (22,660)— (22,660)(44,929)(67,589)
2024年3月31日止結餘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 
股份報酬20,000 — — — — — — — 13,076 — — 13,076 — 13,076 
庫藏股購買(8,665)— — — — — (1,384,593)(31,244)— (191)— (31,435)— (31,435)
股票期權已行使29,375 — — — — — — — 558 — 558 — 558 
凈利潤— — — — — — — — — 66,586 — 66,586 61,531 128,117 
匯率期貨翻譯調整— — — — — — — — — — 221 221 215 436 
未實現現金流避險收益的淨變化— — — — — — — — — — (7,416)(7,416)(5,494)(12,910)
分紅派息 ($0.24 virtu金融向非控制權益支付Class A和Class B普通股、參與限制性股票單位和限制性股票獎酬的每股分紅和分配
— — — — — — — — — (22,368)— (22,368)(70,727)(93,095)
2024年6月30日餘額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 
股份報酬204,193 — — — — — — — 13,297 $— — 13,297 — 13,297 
回購C類普通股— (1,849)— — — — — (52)$— — (52)— (52)
庫藏股購買(57,204)— — — — — (1,679,274)(48,778)— (1,641)— (50,419)— (50,419)
股票期權已行使453,670 — — — — — — — 8,620 — — 8,620 — 8,620 
凈利潤— — — — — — — — — 59,952 — 59,952 59,071 119,023 
匯率期貨翻譯調整— — — — — — — — — — 3,455 3,455 3,380 6,835 
未實現現金流對沖收益的淨變動— — — — — — — — — — (11,200)(11,200)(8,368)(19,568)
分紅派息 ($0.24 virtu financial inc給非控制權益的普通股A類和B類及參與限制股票單元和限制股票獎金股息及派息
— — — — — — — — — (22,192)— (22,192)(65,013)(87,205)
在員工交換中發行普通股31,097 — — — — — — — — — — — — — 
重新購買virtu金融單位，並相應地以C類普通股進行員工交換— — (31,097)— — — — — — — — — — — 
2024年9月30日結餘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
目錄
Virtu Financial, Inc.及其附屬公司
經過核對的綜合權益變動表（未經審核）
2024年和2023年截至9月30日的三個和九個月
A級普通股C類普通股D類普通股庫藏股資本公積金保留收益（累積赤字）累積其他綜合收益（損失）virtu金融公司股東權益合計非控股權益股東權益總額
(以千元計算，除了每股分紅派息和利息資料)
股份金額股份金額股份金額股份金額金額
2022年12月31日結餘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 
股份報酬2,393,550 — — — — — — — 31,030 — — 31,030 — 31,030 
Class C普通股的回購— (21,498)— — — — — (424)— — (424)— (424)
庫藏股購買(902,947)— — — — — (3,932,499)(75,568)— (17,650)— (93,218)— (93,218)
凈利潤— — — — — — — — — 57,881 — 57,881 52,202 110,083 
匯率期貨調整— — — — — — — — — — 980 980 668 1,648 
現金流量避險收益的未實現變動— — — — — — — — — — (7,834)(7,834)(5,334)(13,168)
分紅派息 ($0.24 每股A類普通股和參與式限制股單位和限制股獎的分紅派息，以及virtu金融向非控股權益支付的分紅派息
— — — — — — — — — (24,696)— (24,696)(27,308)(52,004)
與員工交換相關的普通股發行152,037 — — — — — — — — — — — — — 
購回virtu金融單位及相應數量的C類普通股，以及與員工交換相關的普通股回購— — (152,037)— — — — — — — — — — — 
2023年3月31日結束餘額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 
股份報酬20,000 — — — — — — — 12,050 — — 12,050 — 12,050 
庫藏股購買(9,147)— — — — — (2,265,811)(41,579)— (165)— (41,744)— (41,744)
凈利潤— — — — — — — — — 16,702 — 16,702 12,842 29,544 
匯率期貨翻譯調整— — — — — — — — — — 1,503 1,503 1,024 2,527 
未實現現金流避險收益的淨變化— — — — — — — — — — 4,879 4,879 3,323 8,202 
分紅派息 ($0.24 virtu金融向非控股利益支付A類和B類普通股、參與限制性股票單位和限制性股票獎勵的股息和分配
— — — — — — — — — (23,908)— (23,908)(69,744)(93,652)
2023年6月30日結餘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 
股份報酬144,783 — — — — — — — 11,634 — — 11,634 — 11,634 
回購C類普通股— — (214,176)— — — — — (3,596)— — (3,596)— (3,596)
庫藏股購買(38,409)— — — — — (2,689,932)(48,717)— (703)— (49,420)— (49,420)
凈利潤— — — — — — — — — 61,915 — 61,915 55,678 117,593 
匯率期貨翻譯調整— — — — — — — — — — (2,339)(2,339)(1,666)(4,005)
未實現現金流量避險收益的淨變動— — — — — — — — — — (4,466)(4,466)(3,180)(7,646)
分紅派息 ($0.24 virtu金融向非控制股權支付的A類和B類普通股以及參與式限制股單位和限制股獎項的分紅和分派
— — — — — — — — — (23,492)— (23,492)(82,719)(106,211)
購回virtu金融單位及相應數目的C類普通股，以回應員工交換34,357 — — — — — — — — — — — — — 
發行與員工交換相關的稅務應收協議— — (34,357)— — — — — — — — — — — 
截至2023年9月30日的結餘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 
請參閱附注未經審核的簡明綜合財務報表。
7
目錄
Virtu Financial, Inc.及其附屬公司
綜合現金流量表（未經核數）
 截至9月30日的九個月
（以千為單位）20242023
來自經營活動的現金流量
凈利潤$358,448 $257,220 
調整，以將凈利潤調整為經營活動產生的凈現金流量：
折舊與攤提48,640 47,076 
已購入無形資產及購置資本化軟體攤提38,688 48,007 
與債務再融資及預償相關的債務發行成本22,563 306 
債務發行成本及遞延融資費用攤銷5,203 5,260 
辦公室租賃終止合同50 314 
基於股份的報酬50,941 47,108 
递延税款16,590 16,566 
其他(41,574)1,794 
營運資產和負債的變化：
借出證券(579,250)(336,503)
擔保再購買的證券803,341 (2,790,073)
經銷商和清算機構應收款項(456,607)(596,916)
交易資產，以公允價值衡量172,584 (3,656,973)
客戶應收賬款(63,320)(67,615)
營運租賃權使用資產39,238 25,631 
其他資產(12,968)13,795 
借出證券779,718 399,548 
根據回購協議出售的證券(750,183)2,749,399 
經銷商和清算機構應付款項(547,821)266,621 
應付款項給客戶74,545 27,849 
交易負債，按公允價值計量263,819 3,744,498 
營業租賃負債(42,064)(27,953)
應付帳款、應計費用及其他負債26,928 (31,268)
經營活動產生的淨現金流量207,509 143,691 
投資活動產生的現金流量
開發已資本化軟體(34,507)(31,961)
資產及設備的收購(12,608)(24,292)
其他投資活動(8,544)(14,210)
投資活動中使用的淨現金(55,659)(70,463)
財務活動中的現金流量
分紅派息給股東和virtu金融分配給非控制權益(247,889)(251,867)
買回庫藏股(132,942)(184,382)
股票期權已行使9,178 — 
短期借款淨額129,574 96,056 
長期借款所得1,741,888 — 
長期借款還款(1,727,000)(18,000)
利率互換交易收入1,955 — 
支付稅收協議債務(20,226)(23,275)
債務發行成本(27,365)(3,817)
籌集資金的淨現金流量(272,827)(385,285)
匯率變動對現金及現金等價物的影響3,745 170 
現金及現金等價物淨減少額(117,232)(311,887)
現金、現金等價物及限制性或隔離現金，期初855,460 1,038,242 
期末現金、現金等價物、受限或隔離現金$738,228 $726,355 
現金流量資訊的補充披露
支付利息的現金$426,757 $370,761 
8
目錄
Virtu Financial, Inc.及其附屬公司
綜合現金流量表（未經核數）
 截至9月30日的九個月
（以千為單位）20242023
支付的稅金現金32,576 33,595 
非現金投資活動
與資本化軟體相關的基於股份和應計的開發者獎勵補償14,931 14,665 
非現金籌資活動
回購C類普通股(52)(4,020)
 
請參閱附注未經審核的簡明綜合財務報表。
9

Virtu Financial, Inc.與其子公司
基本報表註解（未經核數）
（除非另有說明，所有金額均以千美元為單位，股份和每股金額除外）
1. 組織和報告基礎

組織

附帶的壓縮合併基本報表包含virtu金融公司的帳戶和業務（“VFI”或與其完全擁有或控制的子公司一起，“virtu”或“公司”）。VFI是一家特拉華州公司，其主要資產是對virtu金融有限責任公司（“virtu金融”）的所有權利益。截至2024年9月30日，VFI擁有virtu金融約 57.2％的virtu金融成員權益。VFI是virtu金融的唯一管理成員，負責管理和控制virtu金融及其子公司（“集團”）的一切業務和事務。

該公司是一家領先的金融公司，利用尖端技術為全球市場提供流動性，並為客戶提供創新、透明的交易解決方案。該公司提供超過的深度流動性，分布在超過的交易所，在全球的個國，幫助打造更有效率的市場。該公司借助其全球市場結構專業知識和規模化的多資產基礎設施，為客戶提供包括執行、流動性來源、分析以及中立經紀人、多交易商平台和工作流技術在內的強大產品組合。該公司的產品系列使客戶能夠在超過的交易所、在超過的個國以及跨越全球多個資產類別進行交易，包括全球股票、etf、期權、匯率期貨、固收、加密貨幣和其他大宗商品。該公司集成的多資產分析平台提供一系列的交易前後服務、數據產品和合規工具，供客戶依賴以在全球市場進行投資、交易和風險管理。 25,000 金融工具逾的深度流動性，在的交易所分布，全球的個國，打造更有效率的市場。 250 國超過的交易所，在個 40 國全球的個 50 國超過的交易所，在個，包括全球股票、etf、期權、匯率期貨、固收、加密貨幣和其他大宗商品。公司的集成

該公司已完成重大收購，擴展並補充了virtu金融原始的電子交易和市場業務。 兩個 在2017年7月20日，該公司完成對KCG Holdings, Inc.（“KCG”）的全現金收購（“KCG收購”）。在2019年3月1日（“ITG結業日期”），該公司以全現金交易方式完成了對Investment Technology Group, Inc.及其子公司（“ITG”）的收購（“ITG收購”）。

virtu金融的主要美國（"U.S."）子公司是Virtu Americas LLC（"VAL"），它是一家美國經紀商。其他主要美國子公司包括Virtu Financial Global Markets LLC，一家專注於期貨和貨幣交易的美國交易實體；Virtu ITG Analytics LLC，一家提供交易前後分析、公平價值和交易優化服務的供應商；以及Virtu ITG Platforms LLC，一家提供工作流程技術解決方案和網絡連接服務的供應商。主要的外國子公司包括設立於愛爾蘭的Virtu Financial Ireland Limited（"VFIL"）和Virtu Europe Trading Limited（"VETL"）（前身為Virtu ITG Europe Limited）；設立於英國的Virtu ITG Uk Limited（"VIUK"）；設立於加拿大的Virtu Canada corp（前身為Virtu ITG Canada Corp.）；設立於澳洲的Virtu Financial Asia Pty Ltd.和Virtu ITG Australia Limited；設立於香港的Virtu ITG Hong Kong Limited；以及設立於新加坡的Virtu Financial Singapore Pte. Ltd.和Virtu ITG Singapore Pte. Ltd.，它們都是專注於各自地理區域的資產類別的交易實體。

公司有 兩個 營運節段: (i) 市場做市業務和 (ii) 执行服務; 及 一年。 非營運節段: 公司。請參閱附註21“地理信息和業務節段”以進一步討論公司的節段。

公司於2024年4月19日與marketaxess holdings inc.（“marketaxess”）簽訂了一份單位購買協議，以賣出一 49％的持有權益，去掉多資產報價通訊平台合資企業（“JV”），RFQ-hub Holdings LLC。詳情請參閱附注3“待售業務”。

合併基礎和表達形式

這些綜合財務報表以美元呈現，根據美國證券交易委員會（"SEC"）的規則和法規，根據美國公認的會計標準（"U.S. GAAP"）與財務會計準則委員會（"FASB"）在會計標準編碼（"ASC"或"Codification"）中制定的規則編製，並反映管理層認為是正常和常見，並且對於所呈現的期間的結果是必要的調整，以公正地陳述。根據SEC的規則和法規，某些通常包含在按照美國GAAP編製的財務報表中的信息和附注披露已根據SEC的規則和法規做了精簡或遺漏。
10

公司的綜合財務報表包括對virtu金融及其子公司的股權。作為virtu金融唯一的管理成員，公司對集團的營運施加控制。公司合併virtu金融及其子公司的財務報表，將公司沒有擁有的virtu金融股權記錄為非控制權益。所有關聯公司帳戶和交易在合併中已被消除。

2. 重要會計政策摘要
有關公司重要會計政策的詳細討論，請參閱我們基本報表中第II部分第8項的附註2《重要會計政策摘要》，該報表包含我們截至2023年12月31日年終的10-k表格。

最近採納的會計準則

公允價值衡量 - 2022年6月，FASb發布了ASU 2022-03， 基本報表。該ASU澄清了合同銷售限制對股權價值的影響。此外，該ASU要求披露銷售限制的性質和剩餘期限。公司於2024年1月1日採納了該ASU，對其簡明綜合基本報表沒有實質影響。

租賃-共同控制安排 - 2023年3月，FASb發布了ASU 2023-01， 基本報表—共同控制安排 (主題842)。該ASU為共同控制租賃和租賃改良提供了更新的會計指引。公司於2024年1月1日採納了該ASU，並且對其簡明合併基本報表沒有實質影響。

投資 - 適用權益法及合資企業 - 2023年3月，FASB發布ASU 2023-02， 投資-適用權益法及合資企業（主題323），此ASU提供了有關會計納入稅收抵免結構投資的更新指導。公司於2024年1月1日採納了該ASU，對其簡明綜合財務報表沒有實質影響。

截至2024年9月30日尚未採納的會計準則

業務合併—創業公司形成 - 2023年8月，FASB發布ASU 2023-05， 業務合併—創業公司形成（主題805-60）。此ASU提供有關會計處理創辦創業公司的更新指引。該ASU將從2025年1月1日起對於成立於此之後的創業公司具有前瞻性效力。公司預期這不會對其簡明合併財務報表造成重大影響。

板塊報告 - 2023年11月，FASb發布了ASU 2023-07。 分段報告（專題280）。此ASU要求增加披露有關上市公司可報告部門的信息。它旨在向基本報表用戶提供更加細分的信息，特別是每個可報告部門的重要費用。此ASU自2023年12月15日後開始有效，並適用於2024年12月15日後開始的財政年度的中期時段。公司預計對其簡明合并財務報表及相關披露不會產生重大影響。

無形資產-商譽及其他-加密資產 - 2023年12月，FASB發布ASU 2023-08， 無形資產-商譽及其他-加密資產（主題350-60）。該ASU要求以公平價值衡量在範圍內的加密資產，並提供有關加密資產的更新指引和披露要求。本ASU自2024年12月15日後開始的期間生效。公司目前正在評估本ASU對其簡明合併財務報表及相關披露的影響，並將在2024年12月15日後開始的期間遵守披露要求。

所得稅 - 2023年12月，FASB發布了ASU 2023-09。 所得稅（第740話題）這項ASU要求披露有關有效稅率和所支付所得稅的額外資訊。該ASU將於2024年12月15日後開始生效。公司目前正在評估此ASU的影響，但預計不會對其基本報表及相關披露產生實質影響。

補償-股票補償 - 2024年3月，FASB發佈了ASU 2024-01。 補償-股票補償 (主題718)。該ASU通過實例澄清ASC 718範圍應用於利潤利益或類似獎項。該ASU自2024年12月15日後開始生效。公司目前
11

評估此ASU的影響，但不預期對其基本報表及相關披露產生實質影響。

基準改善 - 2024年3月，FASB發布了ASU 2024-02， 基準改善。 該ASU旨在通過刪除對概念聲明的參考，改善和簡化基準的語言和結構。此修訂將於2024年12月15日後開始的期間生效。公司目前正在評估此ASU的影響，但不認為對其簡明編制財務報表和相關披露有實質影響。

3. 待售業務

2024年4月19日，公司與marketaxess holdings inc.（「marketaxess」）簽署了單位購買協議，根據該協議，公司已同意賣出一定比例的股權。 49RFQ-hub Holdings LLC（「RFQ-hub Holdings」）多資產請求-報價通訊平台JV的持股利益，預計銷售23%，但仍須符合各種交割條件，包括獲得某些監管機構的批准。在本次銷售交割後，公司將保留RFQ-hub的少數股權。

業務持有待售之資產和負債摘要如下：
（以千為單位）
截至2024年9月30日，待售的業務資產和負債：
經銷商和清算機構應收款項$138 
財產、設備和資本化軟體的淨值919 
無形資產（扣除淨值）3,486 
其他資產94 
負債$(1,184)
RFQ-hub的總帶值截至2024年9月30日：$3,453 

4. 每股盈利

以下表格包含了凈利潤前所得稅和非控制權益調解至普通股股東可得凈利潤的過程:
 截至九月三十日止三個月，截至九月三十日止九個月
(以千計)2024202320242023
所得稅前所得和非控制權益$147,160 $138,105 $442,365 $308,337 
所得稅預約28,137 20,512 83,917 51,117 
淨收入119,023 117,593 358,448 257,220 
非控制權益(59,071)(55,678)(176,093)(120,722)
普通股東可用的淨收益$59,952 $61,915 $182,355 $136,498 
12


以下是基本和稀釋每股盈利的計算：
 截至9月30日的三個月截至9月30日的九個月
（以千為單位，股份或每股數據除外）2024202320242023
基本每股收益:  
普通股股東可獲得的凈收入$59,952 $61,915 $182,355 $136,498 
少：分紅派息及分配予參與證券的未分配收益(3,542)(3,111)(10,375)(6,964)
普通股股東可獲凈利潤，除去分紅和分配給優先證券的未分配收益56,410 58,804 171,980 129,534 
常股加權平均已發行股份數：
A類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日的三個月截至9月30日的九個月
（以千計，除股份或每股數據外）2024202320242023
稀釋每股收益:  
普通股股東可取的凈利潤，扣除分紅派息和分配給參與證券的未分配收益$56,410 $58,804 $171,980 $129,534 
常股加權平均已發行股份數：
A類
已發行和流通的87,152,658 93,408,537 88,093,082 95,376,590 
根據修訂和更新的2015年管理激勵計劃發行的股份384,189 — 247,511 — 
87,536,847 93,408,537 88,340,593 95,376,590 
每股稀釋收益（1）$0.64 $0.63 $1.95 $1.36 
（1）排除在每股稀釋收益的計算中 68,988 和 34,622 截至2023年9月30日的三個月和九個月結束之日起，由於包括期權會使其稀釋，未行使的股票期權均被排除。 無 截至2024年9月30日的三個月和九個月結束之日，排除了。
5. 稅收應收協議

如欲深入討論公司的稅款應收協議，請參閱我們年終於2023年12月31日結束之年度報告第II部分第8項之基本報表中的附註4「稅款應收協議」。

針對上述討論的稅收收回協議目的，公司實際節省的現金金額是通過比較公司的實際所得稅負債與公司在購買或交換virtu金融單位的情況下，公司將需要支付的稅款之間的差額來計算的。如果公司的資產未進行( i ) 不增加virtu金融的資產稅基，( ii ) 沒有獲得虛擬金融無形資產稅基的稅收益，以及( iii ) 沒有獲得虛擬金融淨營運虧損（“NOLs”）和其他稅務屬性稅收益，公司將必須支付的稅款。稅收收回協議由於某些事件（例如，NOL的預期實現或稅率變化的變化）而進行的後續調整，將在綜合收益的財務縮表中的稅前及非控制權益內得到承認。

公司從2017年2月至2024年9月支付總額$114.0 發票項款項預計在未來每年約為$0.1 1500 萬美元22.0 百萬之間。 15 年

截至2024年9月30日和2023年12月31日，公司與上述事項相關的尚未實現稅收資產約為$119.6百萬和$135.7百萬美元，而根據稅收可收回協議，在接下來的 15 年內，截至2024年9月30日和2023年12月31日，公司根據最佳估計額度記錄的負債約為$196.3百萬和$216.5百萬美元。這些金額截至2024年9月30日和2023年12月31日，根據各自日期可用的最佳估計數據記錄，但在公司提交該年度的美國聯邦和州收入稅申報後，金額可能會發生變化。

13

6. 商譽和無形資產

公司有 兩個 營運部門包括：(i) 市場做市；以及 (ii) 執行服務；和 一年。 非營運部門：企業。截至2024年9月30日和2023年12月31日，公司記錄的商譽總金額為$1,148.9 百萬 沒有 商譽減值發生於2024年9月30日和2023年的三個月和九個月結束時。

以下表格顯示了截至2024年9月30日和2023年12月31日各區段的商譽詳細資料：
（以千為單位）市場做市執行服務公司股份總計
期末賬目餘額$755,292 $393,634 $— $1,148,926 

如註釋3「待售業務」所述，公司將一個總計淨帳面金額為$3.5 百萬（$7.5 百萬的總帳面金額淨額為$4.0 百萬的累計攤銷)，從無形資產重分類至待售業務的資產。

截至2024年9月30日和2023年12月31日，公司記錄的無形資產總金額為$215.0 百萬美元、百萬元和美元257.5 百萬美元。 收購的無形資產截至2024年9月30日和2023年12月31日如下：
 截至2024年9月30日
（以千為單位）總投資成本 累計攤銷 淨投資成本 有用壽命
（年）
客戶關係$479,130 $(269,541)$209,589 10至12
科技136,000 (136,000)— 1至6
有利的租賃合同5,895 (5,636)259 3至15
交易所會員數3,998 — 3,998 無限期
商標3,600 (3,600)— 3
etf 發行人關係950 (950)— 9
etf 買家關係950 (950)— 9
其他$1,125 $— $1,125 無限期
 $631,648 $(416,677)$214,971 
截至2023年12月31日
（以千為單位）總攤銷金額累積攤提淨攜帶額有用壽命
（年）
客戶關係$486,600 $(237,829)$248,771 10至12
科技136,000 (133,467)2,533 1至6
有利的租賃佔用5,895 (5,177)718 3至15
交易所會員數3,998 — 3,998 無限期
商標3,600 (3,600)— 3
etf發行人關係950 (950)— 9
etf買家關係950 (950)— 9
其他$1,500 $— $1,500 無限期
$639,493 $(381,973)$257,520 
 
有限壽命無形資產相關的攤銷費用分別為2024年和2023年9月30日結束的為$百萬。此數字包括在附帶的綜合收益財務簡明綜合收益報告中已購買的無形資產和取得的資本化軟體之攤銷。11.8 百萬美元、百萬元和美元16.0 百萬，而$38.7 百萬美元、百萬元和美元48.0 分別為截至2024年和2023年9月30日九個月的攤銷費用數額為$百萬。這包含在附帶的綜合收益財務簡明綜合收益報告中已購買的無形資產和取得的資本化軟體之攤銷。

14

公司預計在接下來的五年依下列方式記錄攤銷費用：

（以千為單位）
2024年剩餘部分$11,783 
202547,132 
202647,132 
202747,132 
202847,132 
20299,466 

7. 與經銷商和結算組織的應收款項/應付款項

以下是2024年9月30日和2023年12月31日經銷商和結算商應收和應付款項的摘要：
（以千為單位）2024年9月30日2023年12月31日
資產
與主要經紀商應收款項$494,186 $208,639 
與交易組織的存款171,654 182,008 
與期貨佣金商的淨資產225,319 166,808 
與結算組織的未結交易7,517 1,096 
證券未能交付257,304 148,822 
佣金和費用38,213 30,351 
來自經銷商和清算機構的應收款總額$1,194,193 $737,724 
負債
由於主經紀商$420,591 $780,310 
與期貨佣金商的淨資產（1）(13,066)(36,059)
與結算組織的未結業務56,718 313,875 
證券未能收到150,255 104,702 
佣金和費用5,142 4,884 
經銷商和交易所給付的應付款總額$619,640 $1,167,712 
(1) 公司將其餘額呈現在顧經銷商信貸設施的所有未清基本餘額，當符合抵銷標準時，將其按對方淨額進行呈報.

包括從「應收經銷商」和「期貨佣金商的淨權益」中扣除的是公司所有主經銷商信貸設施（詳見註9「借款」）的未償還本金餘額，截至2024年9月30日和2023年12月31日分別約$百萬美元。143.9 百萬美元、百萬元和美元175.3 信貸設施的貸款款項僅用於滿足公司交易帳戶中持有的普通期貨和其他交易項目所需的初始保證金要求，該交易帳戶由各金融機構之聯屬公司持有。這些信貸設施由公司的交易帳戶和存款帳戶與這些金融機構提供全額擔保。與結算組織和其他經銷商有關的「未交付的證券」和「未接收的證券」已包括在內。

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日抵押交易的公平價值摘要如下：
（以千為單位）2024年9月30日2023年12月31日
作為抵押品收到的證券:
借出證券$2,237,060 $1,665,860 
擔保再購買的證券707,647 1,512,114 
 $2,944,707 $3,177,974 
在正常業務運作的過程中，公司與結算組織抵押合格證券，以滿足每日保證金和結算基金要求。

2024年9月30日和2023年12月31日，擁有及抵押的金融工具中，對方有權重新抵押的情況如下：

（以千為單位）2024年9月30日2023年12月31日
股票$1,971,268 $1,222,559 
交易所交易票據19,425 8,300 
 $1,990,693 $1,230,859 

9. 借款

短期借款淨額

以下總結了公司的短期借款餘額，減去相關的債務發行成本，每一項都在以下更詳細地描述。
2024年9月30日
（以千為單位）未償還貸款推遲發行債務成本短期借款淨額
經紀商信貸設施$110,000 $(813)$109,187 
短期銀行貸款19,574 — 19,574 
$129,574 $(813)$128,761 
2023年12月31日
（以千為單位）未偿借款推迟债务发行成本短期借款净额
经纪商贷款设施$— $— $— 
$— $— $— 

證券經紀商信貸設施  

該公司是與金融機構簽訂 兩個 的擔保信貸協定，用於普通情況下購買美國券商市場做市活動中的隔夜證券頭寸。 一 的資金（“非承諾授信額”）是根據非承諾方式提供，總借款額為$400百萬，並以VAL在金融機構維持的交易和存款賬戶作為抵押。第二筆信貸設施（“承諾授信額”）與該金融機構一致，借款額為$650百萬。承諾授信額包括 兩個 借款基礎：借款基金A用於買賣證券的融資；借款基金b用於在全國證券結算公司存入資金的基金。借款基金A貸款金額可達到$650 百萬並按照調整後的隔夜拆款利率（SOFR）或基準利率加 1.25%計息。借款基金b的貸款金額限額為$300百萬並按照調整後的SOFR或基準利率加 2.50%計息。對於該設施未使用的平均每日未使用部分，按年支付 0.50%的承諾費，按季度預付。

virtu金融新加坡私人有限公司與一家金融機構（“透支授信額度”）訂立了一項循環信用貸款安排，提供短期融資來源。 該安排的總借款上限為$10 百萬，並按照調整後的SOFR或基準利率加計利息 3.5%每年。

16

以下摘要了公司經紀商信貸設施的攜帶價值，扣除未攤銷的發債成本（如適用）。這些餘額已包含在簡明綜合財務狀況表的短期借款中。

 在2024年9月30日
（以千為單位）利率提供融資未偿借款推迟债务发行成本淨未償還貸款
經紀商信貸配套:     
未承諾授信額度6.00%$400,000 $50,000 $(813)$49,187 
承諾授信額度（1）6.25%650,000 50,000 — 50,000 
透支額度8.35%10,000 10,000 — 10,000 
 $1,060,000 $110,000 $(813)$109,187 
（1）承諾授信額度下的Borrowing Base A Loan和Borrowing Base b Loan的利率分別為 6.252024年6月30日和2023年12月31日的時間點，公司從Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收購中記錄的關於監管和產品開發里程碑的待定支付負債的公允價值總和為2.779億和2.887億美元。公司使用概率加權情境折現現金流模型評估預期的待定支付負債和相應的與監管和產品開發里程碑相關的負債的公允價值，該方法與預期待定支付負債的初始計量一致。每個潛在情境應用成功概率，然後通過現值因子計算折扣，得出相應的現值。時間的流逝以及草擬的里程碑實現時間，現值因子，實現度（如適用）和成功概率的變化可能導致公允價值測量的調整。與監管和產品開發里程碑相關的待定支付負債的公允價值是以2024年6月30日和2023年12月31日的加權平均成功概率和現值因子計算的，成功概率分別為%和%，現值因子分別為%和%。付款範圍的預測財政年度範圍為2025年至2031年。所使用的不可觀察的輸入值按待定支付負債的相對公允價值加權。 8.00％及％。截至2024年9月30日，Borrowing Base b Loan尚無未還餘額。
 到2023年12月31日
（以千為單位）利率提供融資未偿借款推迟债务发行成本淨債務總額
經紀業者信貸授信額：     
未承諾授信額（1）6.50%$400,000 $— $— $— 
承諾授信額6.75%650,000 — — — 
透支額度8.88%10,000 — — — 
 $1,060,000 $— $— $— 
(1) $2.3百萬的透延債務發行成本已包括在資產負債表中的其他資產項目中。

以下是經紀商融資設施的利息開支摘要。利息開支包含在配套的綜合損益表中的利息及分紅派息開支內。

 截至9月30日的三個月截至9月30日的九個月
（以千為單位）2024202320242023
經紀商信貸機構：
非承諾授信$988 $1,829 $2,598 $5,377 
承諾授信952 23 2,745 23 
透支授信$146 62 324 272 
 $2,086 $1,914 $5,667 $5,672 

短期銀行貸款

公司的國際證券清算及結算活動是通過營運現金或短期銀行貸款，如透支設施形式進行資助。截至2024年9月30日，這些貸款項目中有 $19.6 百萬的短期銀行貸款 ，與這些設施下的國際結算活動相關，以約 5.2%的加權平均利率計算。截至2023年12月31日，與這些設施下的國際結算活動無關聯的餘額為零。未償還的短期銀行貸款餘額列入損益表的短期借款內。

17

首席券商信貸設施

該公司與各大券商和其他金融機構簽訂了短期信貸協議，從中獲得執行或結算服務。這些資金的收益用於滿足公司在正常情況下交易的產品所需的保證金要求，借入的金額由公司與相應金融機構的交易賬戶作抵押。

 在2024年9月30日
（以千為單位）加權平均
利率		融資
可用的		借款
流通股本
券商信用設施：   
券商信用設施 (1)7.26%$633,736 $143,940 
 $633,736 $143,940 
 到2023年12月31日
（以千為單位）加權平均
利率		融資
可用的		借款
流通股本
券商信用設施：   
券商信用設施（1）7.96%$599,180 $175,256 
 $599,180 $175,256 
(1) 在財務狀況摘要的縮表中，未償款項已包含與經銷商和交易結算機構有關的應收款項或應付款項。

有關融資的利息費用為$。2.4 百萬。 和 $3.3 百萬。 截至三個月結束為止， 分別於2024年9月30日及2023年，為$。7.4 百萬美元、百萬元和美元10.4 百萬。

長期借款

以下總結了公司的長期借款，扣除未攤銷折扣和債券發行成本，如適用：

  在2024年9月30日
（以千為單位）到期日
日期		利息
利率		未偿本金折扣推迟债务发行成本淨未償還貸款
長期借款：      
　第一抵押順位b-1貸款設施2031年6月7.60%$1,245,000 $(2,988)$(15,835)$1,226,177 
　優先擔保第一抵押票據2031年6月7.50%500,000 — (9,001)490,999 
　SBI債券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
（以千為單位）到期日
日期		利息
利率		未偿本金折扣推迟债务发行成本淨未償還貸款
長期借款：      
　　首順位定期貸款方案2029年1月8.46%$1,727,000 $(3,107)$(21,504)$1,702,389 
　　SBI債券2026年1月5.00%24,816 — — 24,816 
$1,751,816 $(3,107)$(21,504)$1,727,205 
18


信貸協議

2022年1月13日（「信貸協議終止日期」），virtu金融及其子公司之一特許公司VFH母公司LLC，與該等出借方、摩根大通銀行NA作為行政代理及摩根大通銀行NA、高盛銀行美國、RBC資本市場、barclays bank plc、Jefferies Finance LLC、BMO資本市場corp及加拿大帝國商業銀行世界市場公司，作為聯合牽頭安排人及牙書管理人簽訂信用協議（「信貸協議」）。信貸協議提供（i）總金額為一億美元的優先擔保頭寸長期貸款，在信貸協議簽訂當天全部提取，其所得用於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，進行公司的回購計劃下的股份回購，以及用於一般公司用途；及（ii）向VFH提供一億美元的優先擔保頭寸循環融資設施，包括一億美元的保函分項設施及一億美元的搭便車分項設施。 本金 百萬美元1,800.0百萬美元250.0百萬美元20.0百萬美元20.0百萬美元

信貸協議下的定期貸款及循環貸款利率，由公司選擇時，按年利率計算，為以下中最高者：(a) 當時實施的主要利率；(b) 包括聯邦基金效率利率和隔夜銀行資金利率中較高者, 每項加上 0.50%，(c) 利率週期為一個月的調整後定期SOFR利率加上 1.00%，以及(d)(1) 定期貸款的情況下， 1.50%，(2) 循環貸款的情況下， 1.00%，再加上，(x) 定期貸款的情況下， 2.00%，以及(y) 循環貸款的情況下， 1.50%，或(ii) 利率週期中的調整後定期SOFR利率和(1) 定期貸款的情況下， 0.50%，(2) 循環貸款的情況下， 0.00%，以及，在長期貸款借款案例中， 3.00%和，在循環貸款借款案例中， 2.50%。此外，承諾費按照 0.50%的年利率計算，根據VFH的首抵债务杠杆比，平均每天未使用的循環融資金額，逐步降至每年 0.3752024年6月30日和2023年12月31日的時間點，公司從Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收購中記錄的關於監管和產品開發里程碑的待定支付負債的公允價值總和為2.779億和2.887億美元。公司使用概率加權情境折現現金流模型評估預期的待定支付負債和相應的與監管和產品開發里程碑相關的負債的公允價值，該方法與預期待定支付負債的初始計量一致。每個潛在情境應用成功概率，然後通過現值因子計算折扣，得出相應的現值。時間的流逝以及草擬的里程碑實現時間，現值因子，實現度（如適用）和成功概率的變化可能導致公允價值測量的調整。與監管和產品開發里程碑相關的待定支付負債的公允價值是以2024年6月30日和2023年12月31日的加權平均成功概率和現值因子計算的，成功概率分別為%和%，現值因子分別為%和%。付款範圍的預測財政年度範圍為2025年至2031年。所使用的不可觀察的輸入值按待定支付負債的相對公允價值加權。 0.25%的利率，並且按季度預先支付。

信貸協議下的循環設施受春季淨首次留置槓桿比率測試的約束，如果總循環承諾的使用超過特定日期的指定水平，則該測試可能於財政季度的最後一天生效。 VFH 也受到根據過剩現金流和其他特定觸發事件進行的有條件本金預付的約束。信貸協議下的借款由virtu金融和VFH的重要非受監管國內受限附屬公司擔保，並由VFH和保證人的幾乎所有資產作為擔保，但是在某些情況下有例外。

信貸協議包含某些慣例保證和觸發事件，包括與控制權變更相關的事宜。如果觸發了且持續發生了觸發事件，信貸協議下的貸款人將有權採取各種行動，包括加速信貸協議下尚未支付款項的償還，以及所有擔保債務下的抵押品擔保債務人允許採取的行動。

該筆貸款分期攤還，每年還款金額相當於原始聚合本金額的百分比。 1.0％的定期貸款原始總本金金額，公司於18.02023年1月13日償還了55.0500萬美元。 2023年12月12日，公司進行了自願性預付，支付金額為

2019年10月，公司著手進行一筆浮動至固定利率掉期協議。 在公司完成3.5億美元的資本投資並新增維持5年的全職職位的條件下，可額外獲得1850萬美元可退還稅款。 $525.0百萬浮動至固定利率期貨交換協議。2020年1月，公司亦展開一筆 五年 $1,000.0 百萬浮動至固定利率期貨交換協議。這些 兩個 利率期貨符合在2020年第一季度根據ASC 815標準條件被視為符合資金流量避險的標準，有效地固定了對525.0百萬和$1,000 百萬元本金根據收購頭順先期貸款資金設施的利率是 4.32024年6月30日和2023年12月31日的時間點，公司從Thrivel Earlier Detection Corporation（“Thrive”），Ashion Analytics，LLC（“Ashion”）和OmicEra的收購中記錄的關於監管和產品開發里程碑的待定支付負債的公允價值總和為2.779億和2.887億美元。公司使用概率加權情境折現現金流模型評估預期的待定支付負債和相應的與監管和產品開發里程碑相關的負債的公允價值，該方法與預期待定支付負債的初始計量一致。每個潛在情境應用成功概率，然後通過現值因子計算折扣，得出相應的現值。時間的流逝以及草擬的里程碑實現時間，現值因子，實現度（如適用）和成功概率的變化可能導致公允價值測量的調整。與監管和產品開發里程碑相關的待定支付負債的公允價值是以2024年6月30日和2023年12月31日的加權平均成功概率和現值因子計算的，成功概率分別為%和%，現值因子分別為%和%。付款範圍的預測財政年度範圍為2025年至2031年。所使用的不可觀察的輸入值按待定支付負債的相對公允價值加權。 4.4在2024年9月和2025年1月，分別根據收購信用協議中規定的利率為 4.5%，與較早到期的掉期安排有關，以及 4.6%，與較晚到期的掉期安排有關。 有效固定利息支付義務仍然為 4.5%，與較早到期的掉期安排有關，以及 4.6%，與較晚到期的掉期安排有關。

2023年12月，公司終止了 兩個 利率互換安排，並從交易對手那裡獲得了$55.8 百萬美元的收益。因此，公司取消了ASC 815下的現金流量避險，並且與終止互換相關的AOCI金額通過利息費用進行攤銷。公司同時與同一交易對手簽訂了 兩年鎖定期 $1,525.0 百萬美元的浮動轉固定利率互換協議（“2023年12月互換”）。2023年12月互換符合被視為符合資金流量避險的標準，並被指定為
19

截至2023年12月的ASC 815，已有效地將第一順位條款貸款設施下$的利息支付義務固定。1,525.0利率期貨設在2025年11月前，基於信用協議中規定的利率，對第一順位條款貸款設施下的$本金進行固定。 7.5%，根據信貸協議中訂定的利率。

2024年6月21日（“修訂生效日”），公司簽署了《授信協議一號修訂案》（“修訂授信協議”），並完成了債券的發行（如下定義）。根據修訂授信協議，發行了總額為$1,245.0 百萬美元的到期日期為2031年的優先擔保第一順位長期b-1貸款（“新長期貸款”），其籌集所得與債券的籌集所得一道，全額償還了授信協議先前未償還的所有長期貸款。此外，修訂授信協議還將其優先擔保第一順位循環信用設施從$250.0 1500 萬美元300.0 百萬美元提高，並將其到期日延長至修訂生效日後的三年。

新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 0.50新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 1.00新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 1.00新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 1.75新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 0新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 2.75新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。 1.0新的定期貸款將根據公司的選擇支付利息，可以是：(i) 最大值為(a) 當前的基準利率，(b) 諸如聯邦基金利率和隔夜銀行資金利率中的較大者再加上百分之，(c) 一個月期間的期限SOFR再加上百分之，以及(d) 百分之；或者(ii) 在當前期限的SORF利率和百分之中的較大者再加上百分之。新的定期貸款將在修訂生效日期的第七個週年到期，並將按照新的定期貸款原始總本金金額的百分之進行年度分期攤還。新的定期貸款還受到根據超額現金流和某些其他觸發事件的有條件本金支付的影響。

截至2024年9月30日，應付債務 仍有未償還，截至2024年9月30日止三個月及九個月， 資本化的利息費用為$。1,245.0 在長期貸款下，尚有零百萬未偿還。 無 在第一順位循環授信設施下，尚有數目未清償。

由於公司進入修訂信貸協議並伴隨貸款餘額減少，公司部分終止了2023年12月掉期，並將其名義金額從$轉變為1,525.0$百萬1,075.0萬美元，並從交易對手處獲得了$萬美元的款項。現金流量避險根據ASC 815於2024年6月21日比例遞改。由於部分遞改，我們在其他收入中承認了$萬美元的收益。2.0這個利率期貨有效地固定了新期貸款本金$萬美元的利息支付義務，根據修訂信貸協議中規定的利率，直至2025年11月過渡。5.7進入修訂信貸協議並伴隨貸款餘額減少，公司部分終止了2023年12月掉期，並將其名義金額從$轉變為1,075.0萬美元，並從交易對手處獲得了$萬美元的款項。現金流量避險根據ASC 815於2024年6月21日比例遞改。由於部分遞改，我們在其他收入中承認了$萬美元的收益。 7.17這個利率期貨有效地固定了新期貸款本金$萬美元的利息支付義務，根據修訂信貸協議中規定的利率，直至2025年11月過渡。

優先受保護第一順位抵押票據

2024年6月21日，VFH和Virtu金融的子公司Valor Co-Issuer, Inc.（以下簡稱“聯合發行人”）完成了發行總額為$的優先擔保首次典權到期日為2031年的票據（以下簡稱“票據”）交易。500.0 百萬的總本金 7.50票據根據一份日期為2024年6月21日的信託契約（以下簡稱“契約”）發行，參與方包括VFH、聯合發行人、Virtu金融以及作為受託人和抵押品代理的美國銀行信託公司國家協會。票據於2031年6月15日到期。票據的利息每年按%年息計息，於每年6月15日和12月15日計付，自2024年12月15日起開始計付。我們將VFH和聯合發行人合稱為“發行人”. 7.50每6個月支付利率為%，至2031年6月15日到期。我們將VFH和聯合發行人共同稱為“發行人”。

有關備忘錄及相關擔保得到第一優先完善的留置權，擔保對發行人和擔保人現有和未來的資產，受到特定例外條件的限制，包括所有重要的動產，設立抵押權的
發行人、擔保人（除virtu金融以外）及發行人和擔保人的直接子公司的資本股份， 100非表決權資本股的百分比和最多 65.0任何現在或以後由發行人或任何擔保人直接擁有的外國子公司的表決權資本股的百分比，這些資產也是提供擔保的
按照修訂後的信貸協議，優先地履行義務。

債券契約對我們的某些能力施加了限制：(i)承擔或擔保額外的負債或發行優先股；(ii)支付分紅、進行某些投資以及還償 Notes 優先於債券的次貸款或進行其他“受限制的支付”；(iii)設立抵押權以抵押資產以保障債務；(iv)與聯屬公司進行交易；(v)與另一家公司合併、合併或合併；(vi)轉讓和賣出資產；及 (vii)允許對 virtu金融 子公司支付股息的限制。債券契約還包含慣例性違約事件，包括但不限於，與 Notes 償還本金或利息未付款違約、承諾違約、最終到期違約或對重大債務進行交叉加速的違約以及某些破產事件。

在2027年6月15日前，我們可能按照贖回價格贖回一部分或全部票據。 100等於本金加上應計未付利息的％，（但不包括）贖回日期之前的利息，再加上適用的“彌補”溢價。

20

在2027年6月15日之前，我們也可以按照某些股本發行的淨現金收益贖回多達 40％的票面總額，贖回價為其票面金額的％，加上截至（但不包括）贖回日的應計但未支付利息。 107.500％的票面金額，加上應計但未支付的利息（如有），以及特定股本發行的淨現金收益。

在2027年6月15日之前，我們也可能在往後每個連續的十二個月期間內，從2024年6月21日之後開始，贖回甚至更多 10備註的總原始本金金額的百分之 103的備註本金金額，加上截至贖回日期前尚未支付的應計利息。

在2027年6月15日或之後，我們可能以以下贖回價格（表達為本金金額的百分比），再加上到贖回日期之前（不包括該日期）的應計及未支付利息，贖回部分或全部票據，如果在下列所示年份的6月15日起為期12個月的期間內贖回：

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

根據債券契約中所定義的特定控制變更事件發生時，我們必須提供購回票據的機會， 101其價格為本金金額的％，加上應計及未支付的利息（如有），至（但不包括）購買日期。

SBI債券

2016年7月25日，virtu金融發行了總面值為¥ 日幣債券（統稱為“SBI債券”），3.5 KRW _____十億，折合___百萬美元33.1 發行日期）發行給SBI人壽保險有限公司和SBI保險有限公司。SBI債券的款項用於部分資助對Japannext Co., Ltd.的投資（如附註10“財務資產和負債”中所述）。SBI債券由virtu金融提供擔保。SBI債券受日幣匯率與公司報告貨幣（美元）之間波動的影響，這些變化在綜合損益表的其他項目中反映。到2022年12月，SBI債券的到期日延長至2026年。截至2024年9月30日，本金餘額為¥ 日幣3.5 十億美元（$24.4 百萬），截至2023年12月31日，本金餘額為¥3.5 十億美元（$24.8 百萬）。公司虧損2.6 百萬和收益$0.8 分别为2024年和2023年截至9月30日的三个月中分别为损失 金额为各$百萬，由於外匯率的变动而获得了$0.4 百萬和收益$3.3 在2024年和2023年截至9月30日的九个月中分别为损失 金额为各$百萬，由於外匯匯率的变动而获得了$

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.

24

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.
25

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.
27


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
47

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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