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In this paper we show how the Lie-Poisson structure on the dual of the Virasoro algebra can be obtained through a standard Poisson reduction process performed on a Kac-Moody algebra on the circle. We use the geometrical idea of the process to establish some relation between transverse structures on both Poisson manifolds.

On the Virasoro algebra as reduced Poisson submanifold of a Kac-Moody algebra on the circle