Retail frenzy is dubious gift for market middlemen

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Marketplace middlemen like $6 billion Virtu Financial seemed like the main winners as Reddit-using punters poured cash into shorted stocks like GameStop. But appearances can be deceptive, writes LiamWardProud:

Virtu Financial on Feb. 11 reported $3.2 billion of revenue for 2020, which was more than double the total for 2019.

The company’s market-making business, which rapidly buys and sells equities and other securities, generated almost $2.6 billion of revenue in 2020, compared with just over $1 billion in 2019.Specialist traders work at a Virtu Financial booth on the floor of the New York Stock Exchange April 16, 2015.

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