Virtu Financial grabs attention of NY attorney general

Services and technologies used by high-frequency traders investigated

The request to Virtu Financial comes as the firm attempts to go public, a process delayed after the March 31st publication of the  latest book by Michael Lewis (above) sparked unprecedented scrutiny of high-frequency traders.  Photograph: Lucas Jackson/Reuters

The request to Virtu Financial comes as the firm attempts to go public, a process delayed after the March 31st publication of the latest book by Michael Lewis (above) sparked unprecedented scrutiny of high-frequency traders. Photograph: Lucas Jackson/Reuters

Sat, Apr 19, 2014, 10:57

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.

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)