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Institutional Trading

IOIs at Virtu

Virtu issues three types of IOIs:

Natural IOIs

A natural IOI assumes that Virtu has a client order in hand and is looking for a contra order.

House-Natural IOIs

Virtu uses a qualifier to indicate a directional bias in retail volume. Virtu generates a house-natural IOI on the same side in anticipation of the imbalance continuing.

General-Interest IOIs

This is an IOI that includes side, size, and price but is not based on current orders or specific executed volumes.


FAQs about House-Natural IOIs

What is a Virtu house-natural IOI? How is it different?

Virtu’s house-natural IOIs are generated based on the buy/sell imbalance of executed retail volume. They include a price and size at which Virtu is willing to commit its capital and are created in anticipation of continued flow on the same side from the firm’s retail clients. The imbalance is calculated at 15 minute intervals throughout the trading day.

How long are the IOIs valid?

These IOIs expire within 5 minutes of being sent. The imbalance is calculated every 15 minutes.

How will any accumulated positions be unwound?

If the imbalance continues, then there will be opportunity to trade out of the position by interacting with retail client flows. If the volume stops or reverses, Virtu will manage the position while trying to minimize impact or reversion.

What if you can’t fill my order?

House-natural IOIs will expire within 5 minutes of being sent. It is possible that, as with any liquidity, demand can diminish or reverse. However, as always Virtu will make every effort to accommodate a request for block liquidity.

How can I access Virtu’s house-natural IOIs?

You can access all of our IOI messages including house-natural IOI messages quickly and easily through Bloomberg. Virtu can send IOI messages to any FIX enabled system or OMS.

What capacity will I see on my orders?

Executions resulting from a response to a house-natural IOI will likely result in mostly principal fills.

I use CSA only when trading with Virtu. Can I execute against house-natural IOIs?

Since the majority of executions will likely be principal, you will not be able to trade using a CSA agreement. However, you can opt to trade outside of a CSA agreement.

Why is Virtu offering a house-natural IOI now?

  • - We are addressing a client need.
  • - We are always looking for ways to connect clients to our unique liquidity.
  • - Our new house-natural IOIs enable us to provide additional block liquidity trading opportunities to institutional clients.
  • - This can be particularly attractive to those seeking liquidity in often elusive small and midcap stocks.

Virtu Institutional Trading

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