From The Business Journals
New York has a challenger to its long-held position at the center of the world’s most important financial market.
Back in the 1990s, a group of firms set the stage for taking over high-frequency trading (HFT) and the results paid off. In today’s $13 billion treasury market, Chicago is dominating while Wall Street’s influence is beginning to wane.
The Windy City is where some of the earliest adopters of electronic trading were based. Major players remain headquartered in the third-most-populous U.S. city, including Jump Trading LLC, Citadel Securities LLC, Teza Technologies LLC, XR Trading LLC and DRW Trading Group. Chicago is also the home to CME Group Inc. — the world’s biggest futures market.
Chicago-based companies deploying high-frequency technology captured at least 63 percent of trading from May to June on BrokerTec, the largest interdealer system, according to data from Risk.net, explained Lisa Abramowicz in the Bloomberg report above.