Virtu Reveals CFTC Probe Into Trading Incentives From Exchanges

Virtu Financial Inc., the automated trader that today released plans for selling stock, said U.S. derivatives regulators are investigating its trading practices.

The U.S. Commodity Futures Trading Commission is looking into the company’s “participation in certain incentive programs offered by exchanges or venues” from July 2011 to November 2013, Virtu said in its initial public offering document today. Virtu said it doesn’t believe it broke the law, “but we cannot predict the outcome of the inquiry.”

Steve Adamske, a spokesman for the CFTC, didn’t imediately respond to a request for comment.

The derivatives regulator has announced that it’s reviewing practices at high-speed trading firms, requesting public comment on an industry that includes Virtu. The concept release approved by the CFTC in September is a first step toward creating new regulations for the business.

To contact the reporter on this story: Sam Mamudi in New York at

To contact the editors responsible for this story: Nick Baker at Chris Nagi

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