Odd Lots Virtu CEO Doug Cifu Explains Payment for Order Flow and the Future of HFT
Mar 29, 2021
Doug Cifu, CEO of Virtu Financial, shares his expertise on high-frequency trading and payment for order flow. He clarifies how these practices influence retail trading, especially post-GameStop. Cifu addresses misconceptions about market makers and explains how zero-commission trading has transformed the landscape for individual investors. The discussion dives into order routing complexities, the importance of execution quality, and the advantages of technology in enhancing retail trading experiences. A fascinating peek into the machinery behind today’s trading dynamics!
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Hot Dog Tweets
- Doug Cifu started tweeting about hot dogs after receiving negative comments about hockey and high-frequency trading.
- He promotes Feltman's hot dogs, a veteran-owned company, due to their quality and his positive experience.
Virtu's Mission
- Virtu Financial was founded to automate market making using technology.
- It aims to provide the best bid and offer in electronic marketplaces globally.
Market Making Basics
- Market makers profit from the spread between buyer and seller prices, holding assets for very short periods.
- They require significant financial technology to operate efficiently across various exchanges and dark pools.