Virtu Financial on Wednesday announced it will provide J.P. Morgan Chase with technology and market access to help the bank trade in U.S. Treasury markets.
Virtu, a high-frequency trading and technology firm, said in a news release on its second-quarter financial results that the agreement would help J.P. Morgan with anonymous dealer-to-dealer market making.
Douglas Cifu, Virtu CEO, said in the release that “J.P. Morgan can benefit from applying Virtu’s technology to certain markets and Virtu can benefit from leveraging its existing technological footprint to serve banks like J.P. Morgan.”
Brian Marchiony, spokesman for J.P. Morgan, confirmed the agreement with Virtu. “We are committed to staying a leader in fixed income,” he said. “Working with outside firms is complementary to our internal investments and ensures that we are evaluating innovative technologies as the markets evolve.”
The agreement concerns a business unrelated to J.P. Morgan’s government securities settlement services, which the bank announced last month it would close by the end of 2017.
Virtu on Wednesday reported net income of $39.3 million in the second quarter, up from $7.6 million a year earlier when its net income was reduced by costs related to its initial public offering in April 2015.