Hudson River Trading (HRT) has entered into a definitive agreement to acquire rival high frequency trading firm Sun Trading (Sun).
"This acquisition combines HRT's expertise in on-exchange trading with Sun's expertise in off-exchange trading creating a stronger, more diverse firm." said HRT co-founder and director, Jason Carroll.
Low market volatility and rising costs are said to be major contributing factors to consolidation within the high frequency trading industry. Other recent takeovers have included DRW Holdings' purchase of RGM Advisors, Virtu Financial's acquisition of KCG Holdings, and Teza Technologies' sale of its high-speed trading business to Quantlab Financial.
Subject to final due diligence and regulatory approval, the transaction is expected to close in the first quarter of 2018. Terms of the deal have not been disclosed.