High-speed trader Hudson River Trading LLC agreed to buy its Chicago-based rival Sun Trading.
The deal adds to evidence that the automated trading business is shrinking, pummeled by lower volatility and higher costs. A decade ago, high-frequency traders flourished, but as market prices have gotten more efficient, companies have struggled to remain independent or open at all. Market makers in U.S. stocks produced $1.1 billion in revenue in 2016, compared with $7.2 billion in 2009, according to an estimate from Tabb Group LLC.
The deal for Sun Holdings LLC is expected to close in the first quarter, according to ...
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