Virtu Financial (NASDAQ:VIRT)

All marketplaces need market-makers, but with domestic and international financial regulations exploding, rising bank capital requirements and falling leverage ratios are drastically limiting traditional sell-side market-makers ability to commit capital to the marketplace. Companies like Virtu are quickly becoming the next generation market-makers. Virtu has an incredibly experienced and battle-hardened management team. The company has been able to insert its sophisticated and now time-tested market making algos into nearly all electronically traded markets WORLDWIDE. While Virtu can run with the best of the HFTs, Virtu's philosophy aligns more as a maker, rather than a taker of liquidity. This distinguishes Virtu from most other HFTs, who typically operate as takers of liquidity. It also attracts many vendors to Virtu. Exchanges, electronic platforms, SEFs and other market operators globally are reaching out to Virtu seeking help in providing liquidity for both existing and newly launched trading products across the asset-class spectrum. This includes cash and futures across fixed-income, currencies, commodities, derivatives and equities, where Virtu operates in all.

Financials look excellent as seen from their latest Q3 report:

Third Quarter Selected Results*
> Net Income of $69.5 million; Adjusted Net Income** of $76.2 million, which excludes IPO related
adjustments
> Adjusted EPS** of $0.40; GAAP Basic EPS of $0.36 and Diluted EPS of $0.35
> Adjusted Net Trading Income** of $138.6 million, up 34.3%
> Adjusted EBITDA** of $100.7 million, up 52.3%; Adjusted EBITDA Margin of 71.3%
> Quarterly cash dividend of $0.24 per share payable on December 15, 2015

Virtu is able to make money in all markets and becoming increasingly capable that during periods of calm and of hightened volatility. I think with the sell-side banks exiting their once traditional market making roles across the product spectrum, all the attractive money-making oppoortunites that only the sell-side banks enjoyed, will be left for Virtu to capitalize on.