Hedge fund Two Sigma buys Timber Hill

A couple of weeks ago Interactive Brokers announced it would close its Timber Hill prop trading operation as no buyer for the unit could be found. 

A lot can change and quantitative hedge fund Two Sigma scooped up the Connecticut company in an effort to increase its derivatives business as a full-service market maker for wholesale clients. 

The move makes sense. In the changing landscape, proprietary traders have been transforming themselves into hedge funds, creating some sort of hybrid. That a hedge fund buys the knowledge and technology of a prop trader seems like a logical continuation.

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