Futures Traders Are Getting Squeezed With Job Cuts Seen Climbing

The futures world was buffeted in recent days with news of workforce cuts, and industry veterans say more may be on the way as smaller firms are squeezed by a few giants that dominate the $30 trillion market in Chicago.

The reductions at high-frequency firms XR Trading and Allston Trading LLC may be a harbinger of more consolidation to come, said Chris Hehmeyer, chief executive officer of Hehmeyer Trading & Investments. He said technology costs are prohibitive for smaller firms, part of an environment that’s testing the ability of startups to survive.

“It makes it hard and challenging for ...