The New Wall Street: Even Big Banks Want Help Navigating Markets
- Algo-driven firms like Virtu, Citadel have transformed trading
- Bank retreat after financial crisis created an opportunity
The New York Stock Exchange is reflected in a puddle.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
After JPMorgan Chase & Co.’s shares plunged 21 percent in the opening minutes of trading on Aug. 24 last year, the world’s largest investment bank sought out an unlikely ally, Virtu Financial Inc., to help it understand what happened.
The lion was turning to a mouse for help navigating the jungle where it has long been king. JPMorgan spends more on technology in six months than Virtu’s equity is worth. It has 240,000 employees to Virtu’s 148.