High-frequency trading firm Infinium Capital Management has reportedly stopped trading and in the process of winding down following financial woes.
The Chicago-based firm told Reuters that it has already sold five trading desks to foreign-exchange brokerage FXCM. FXCM and a subsidiary have also hired 48 Infinium employees to trade for a new joint venture, V3 Markets. Additional details regarding the sale were not disclosed.
Infinium’s closure “reflects pressures on high-speed trading firms stemming from increased competition and regulatory oversight, low interest rates that have hurt volume and volatility, and the uncertain global economic recovery.” The firm lost $6.6 million in 2012 and $6.1 million from January 1 to July 31, 2013, according to the article.
Infinium traded in commodities, energy and other markets.