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This has to be Virtu Financial for me. Their volatile results & lack of public comps make them hard to value, but huge retail demand has boosted their wholesale biz & they're expanding into new markets like options. We could see $5 EPS and a $40 stock this year. cc @Dougielarge

Followed! Does this business have blow-up risk? If I remember correctly, they bought Knight Capital's market maker business which blew up in 2012?

There is indeed blow-up risk, but I put the odds of an extreme event like that happening again at very low. Part of the DD process for companies like this is asking the question "how well do I trust management to prioritize operational excellence given the potential risks?"

Virtu bought KCG in 2017, a few years after the trading glitch. The strategy behind the deal was to expand their presence in ETF market making, which was (rightly) seen as a growth space worth investing in.

Interesting. Looking forward to your $VIRT write-up.. So which of the companies is your long-term favorite and why?

Bringing it back full circle, today my largest exchange holding is $ICE. I think the market is undervaluing their massive energy business and I like the Ellie Mae deal provided they can continue to execute. Valuation is not too excessive either at 25x this years earnings.

Can any of these companies serve as a volatility hedge? I thought it would be $CBOE but the "home of the VIX" is still below its 2020 high. What's going on there?