High-frequency trading shops are having a difficult time in the current marketplace, as trading volumes remain extremely low. This week, Eladian closed its doors due to the weak market. Who will be next?
2. Vanishing Profits
Rosenblatt Securities estimated that HFT firms would earn no more than $1.25 billion in profits this year, down 35 percent from last year and 64 percent beneath a peak of about $4.9 billion in 2009.
Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio