Virtu Financial—one of the world’s largest computerized trading firms—made money every trading day last quarter. The problem is that it made less of it than in the past, as volatility in the financial markets has dried up in recent months. Big price swings are good for high-frequency trading strategies, as machines can swoop in and take advantage of market shifts.
While many high-frequency trading shops are secretive about their results and plans, Virtu is listed in New York, so its required updates provide a view into the state of the industry. The company’s profit from trading fell in just about every category last quarter, with net income from currencies and commodities taking the biggest hit, each declining some 30% versus the same quarter last year. The company’s share price fell by 8% in early trading.
More here – Quartz