Regulatory Requirement

6 Months Ended

Jun. 30, 2024

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

U.S. Subsidiary

The Company's U.S. broker-dealer subsidiaries VAL and RFQ-hub Americas LLC (“RAL”, as described in Note 3 “Business Held for Sale”, which is currently held for sale), are subject to the SEC Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital as detailed in the table below. RAL became a U.S. broker-dealer in June 2023. Pursuant to New York Stock Exchange (“NYSE”) rules, VAL was also required to maintain $1.0 million of capital in connection with the operation of its designated market maker (“DMM”) business as of June 30, 2024. The required amount is determined under the exchange rules as the greater of (i) $1.0 million or (ii) $75,000 for every 0.1% of NYSE transaction dollar volume in each of the securities for which the Company is registered as the DMM.

The regulatory capital and regulatory capital requirements of the Company's U.S. subsidiaries as of June 30, 2024 was as follows:


(in thousands)	Regulatory Capital		Regulatory Capital Requirement		Excess Regulatory Capital
Virtu Americas LLC	$	402,458	$	1,247	$	401,211
RFQ-hub Americas LLC	1,036		23		1,013

As of June 30, 2024, VAL had $25.4 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $6.2 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. The balances are included within Cash restricted or segregated under regulations and other on the Condensed Consolidated Statements of Financial Condition.

The regulatory capital and regulatory capital requirements of the Company's U.S. subsidiaries as of December 31, 2023 was as follows:


(in thousands)	Regulatory Capital		Regulatory Capital Requirement		Excess Regulatory Capital
Virtu Americas LLC	$	412,626	$	1,000	$	411,626
RFQ-hub Americas LLC	1,425		15		1,410

As of December 31, 2023, VAL had $28.7 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $6.1 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers.

Foreign Subsidiaries

The Company’s foreign subsidiaries are subject to regulatory capital requirements set by local regulatory bodies, including the Canadian Investment Regulatory Organization (“CIRO”), the Central Bank of Ireland (“CBI”), the Financial Conduct Authority (“FCA”) in the United Kingdom, the Australian Securities and Investments Commission (“ASIC”), the Securities and Futures Commission in Hong Kong (“SFC”), and the Monetary Authority of Singapore (“MAS”).

The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of June 30, 2024 were as follows:


(in thousands)	Regulatory Capital		Regulatory Capital Requirement		Excess Regulatory Capital
Canada
Virtu Canada Corp (1)	$	15,080	$	183	$	14,897

Virtu Financial Canada ULC	1,323		183		1,140
Ireland
Virtu Europe Trading Limited (1)	58,428		26,447		31,981
Virtu Financial Ireland Limited (1)	79,658		43,464		36,194
United Kingdom
Virtu ITG UK Limited (1)	3,076		948		2,128
Asia Pacific
Virtu ITG Australia Limited	24,494		16,440		8,054
Virtu ITG Hong Kong Limited	3,814		384		3,430
Virtu ITG Singapore Pte Limited	947		126		821
Virtu Financial Singapore Pte. Ltd.	187,352		124,172		63,180
(1) Preliminary

As of June 30, 2024, Virtu Europe Trading Limited had $50 thousand of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd. had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers.

The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of December 31, 2023 were as follows:


(in thousands)	Regulatory Capital		Regulatory Capital Requirement		Excess Regulatory Capital
Canada
Virtu ITG Canada Corp	$	14,630	$	189	$	14,441
Virtu Financial Canada ULC	1,197		189		1,008
Ireland
Virtu Europe Trading Limited	86,370		27,821		58,549
Virtu Financial Ireland Limited	88,939		40,459		48,480
United Kingdom
Virtu ITG UK Limited	2,040		955		1,085
Asia Pacific
Virtu ITG Australia Limited	24,788		3,856		20,932
Virtu ITG Hong Kong Limited	2,786		445		2,341
Virtu ITG Singapore Pte Limited	953		130		823
Virtu Financial Singapore Pte. Ltd.	126,022		73,407		52,615

As of December 31, 2023, Virtu Europe Trading Limited had $36 thousand of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers.