High-Frequency Traders Said to Be Subpoenaed in New York Inquiry

(Bloomberg)--New York Attorney General Eric Schneiderman sent subpoenas to six high-frequencytrading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter.

Chopper Trading LLC, Jump Trading LLC and Tower Research Capital LLC are among the firms, according to the person, who asked to not be named because the details of the investigation havenít been made public.

Matt Schrecengost, the chief operating officer of Chicago- based Jump Trading, and Mark Gorton, managing director of New York-based Tower Research, didnít immediately return voicemail messages seeking comment. No official at Chicago-based Chopper Trading was immediately available.

Schneiderman announced last month that heís concerned some trading platforms may sell services, such as faster data feeds, that give an unfair advantage to high-frequency traders seeking to profit from split-second price movements. Heís not the only one looking into the practice: U.S. authorities including the Federal Bureau of Investigation are probing whether the trading firms act on nonpublic information to gain an edge over competitors.

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