Virtu’s bid for KCG stokes liquidity fears
Deal could result in less trading and lower exchange revenues
Traders and exchange operators are raising concerns about Virtu Financial’s proposed acquisition of KCG, which they say may worsen liquidity in already fragile markets.
Both firms are active market-makers in equity, foreign exchange and interest rate products.
“There’s concentration and now there are fewer liquidity providers,” said Eric Chern, chief executive at Chicago Trading Company, a proprietary market-making firm specialising in derivatives. “In the past two weeks, we’ve had a firm
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