VIRTU Financial (VIRT) Stock: Why It Increased Over 7% Today

By Amit Chowdhry ● Sep 22, 2022
  • The stock price of VIRTU Financial (VIRT) increased by over 7% intraday today. This is why.

The stock price of VIRTU Financial (VIRT) increased by over 7% intraday today. 

Why: Investors are responding positively to reports that U.S. regulators would not ban payment for order flow, which is a key component of Robinhood’s business model. Bloomberg had reported that the Securities and Exchange Commission (SEC) would not ban payment for order flow, but there could be rule changes that could reduce profitability.

What is payment for order flow: Payment for order flow is a practice in which market makers and brokerages split the profits made on the trades from retail investors. The compensation is usually in fractions of a penny per share that brokerages receive for directing the orders for trade execution.