Virtu Financial grabs attention of NY attorney general

Services and technologies used by high-frequency traders investigated

Virtu Financial, a high-frequency trader trying to sell shares in an initial public offering, has grabbed the attention of New York's attorney general as he investigates the industry.

The New York-based trading firm has received a letter of inquiry from Eric Schneiderman’s office requesting information about its business, according to a person familiar with the matter, who asked not to be identified.

The request comes as Virtu attempts to go public, a process delayed after the March 31st publication of Michael Lewis’s latest book sparked unprecedented scrutiny of high-frequency traders.

Mr Schneiderman announced last month that he was investigating services and technologies used by high-frequency traders, including faster data feeds that may give certain firms a split-second edge over others. The Federal Bureau of Investigation has begun its own industry examination.

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A person with knowledge of the matter said this week that six high-frequency trading firms got subpoenas as part of Schneiderman’s investigation, including Jump Trading, Chopper Trading and Tower Research Capital. – (Bloomberg)