Meme stock frenzy not exclusively pushed by retail traders: Virtu CEO Cifu

The frenzied action involving so-named meme stocks is currently being driven by a lot more than just retail investors, the CEO of market place maker Virtu Money informed CNBC on Wednesday.

“You can find a whole lot of establishments, experienced traders, speculators, whatever you want to contact them, engaged in this in each the cash equities market and the choices marketplace,” Virtu’s Doug Cifu said on “Ability Lunch.” “This is not exclusively a band of retail traders buying and selling these shares,” he additional.

Cifu’s comments occur as the spotlight has returned to meme shares that are well known on on-line community forums these types of as Reddit. Although the saga started in January, with GameStop then serving as the most prominent instance, retail traders have broadened their target to other securities.

AMC Enjoyment has currently been a favorite on Reddit boards and, extremely recently, Clover Wellbeing and Cleanse Energy Fuels have attracted notice.

Clover Health entered Wednesday’s session up extra than 140% so far this week alone. Having said that, irrespective of an initial pop to commence the trading working day, Clover Overall health closed down 23.6%.

Clear Strength Fuels soared far more than 30% Wednesday.

Reddit traders have appeared for shares with sizable quick positions, obtaining shares and get in touch with options in an attempt to force up the selling price.

“They’re likely for anything. … You have to test to figure out which one is subsequent,” CNBC’s Jim Cramer explained earlier Wednesday, even though likening the meme-stock fad to gambling, not just investing.

Cifu also co-started Virtu in 2008, and the New York-centered fiscal business has come to be a person of the world’s major marketplace makers, which engage in a important role in executing inventory trades.

“We have two sides to our business enterprise. We have a retail business and an institutional company. It should really not be dropped on men and women: This is not exclusively a retail phenomena,” Cifu claimed, referring to the meme stocks.

“We want to make certain that you can find ideal ideal, folks really know what they’re executing and they get comprehensive transparency,” he added. “But or else, that’s what markets are right here for, and they are operating really effectively.”