Financial research concept

Market Maker Adjusted Net Trading Income

Adjusted Net Trading Income is an issuer-defined non-GAAP measure that combines trading revenue with related commissions, financing income, financing expense, and direct transaction costs.

By Lee BaileyPublished Sep 22, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Sep 22, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
12 connected conceptsPart of the reviewed Market Making Operating Model; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Why it matters
  2. Investor caution
  3. Part of the Market Making Operating Model
  4. See It in Company Research
  5. Continue Research

Adjusted Net Trading Income is an issuer-defined non-GAAP measure used by Virtu Financial to evaluate trading economics after combining several revenue and direct-cost lines.

A useful reconstruction is:

Adjusted Net Trading Income ≈ Trading Income, Net + Interest and Dividends Income + Commissions, Net and Technology Services - Brokerage, Exchange, Clearance Fees and Payments for Order Flow, Net - Interest and Dividends Expense

Virtu evaluates trading income in this broader context because the economics of market making span spreads, financing, commissions, exchange costs, clearing costs, and payment-for-order-flow costs.

Why it matters

Looking only at trading income can overstate the economic contribution of spread capture if the associated transaction and financing costs are ignored.

Investor caution

This is not a GAAP subtotal and is not standardized across trading firms.

Source:

Adjusted Net Trading Income is a management performance measure, not a universal definition of market-making revenue.

Part of the Market Making Operating Model

Connect trading income, direct transaction and financing economics, daily normalization, and Market Making versus Execution Services segment mix to understand electronic market-making economics.

How the model fits together
  • Spread capture and daily trading intensity: Trading Income, Net captures realized and unrealized trading gains and losses, while Adjusted Net Trading Income broadens the view to related commissions, financing income, financing expense, and direct transaction costs. Average daily Adjusted Net Trading Income divides that issuer-defined measure by a normalized trading-day denominator. These measures are related but should not be treated as standardized industry profitability metrics.
  • Direct trading revenue and cost bridge: Trading income, interest and dividends income, and commissions plus technology services contribute to the trading revenue base, while brokerage, exchange, clearance, order-flow, interest, and dividend expenses offset that economics. Virtu combines these lines in its non-GAAP Adjusted Net Trading Income framework, so the bridge is issuer-defined rather than a universal accounting subtotal.
  • Market Making and Execution Services mix: Market Making revenue captures the principal liquidity-provision segment while Execution Services revenue captures the client-oriented execution and workflow business. Their revenue-mix ratios show consolidated business composition, not segment profitability or a standardized measure of trading risk.

See It in Company Research

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