IT Trading, LLC, a Newbury Park, California-based developer of quantitative trading software, has received a $3.2m minority investment from Crescent Financial Partners.
The company’s software, which uses a trading model known as “statistical arbitrage” locates arbitrage trades among different exchanges, simultaneously executes trades, and acts as a risk management console in regards to changes in market positions.
It has been under development for nearly a decade.
Commenting on the investment, Added Russell Armstrong, CEO and Managing Director of Crescent Financial Partners, said: “We believe this algorithm is capable of generating non-correlated excess returns, in both up and down markets.
“We plan to scale this trading model to discover and benefit from statistical inefficiencies in highly liquid markets.
“In the current investment environment, we feel the superior risk-reward profile of this trading platform will stand out”.