Steven Cohen is backing an electronic trading startup that is taking aim at high-speed trading firms.
The private equity arm of Cohen's firm invested an undisclosed amount of money in Imperative Execution, The Wall Street Journal reported on Tuesday. Imperative's CEO, Roman Ginis, is a former trader for Cohen, learning first-hand how high-frequency traders can chip away at profits.
A spokesperson from Point72 confirmed the deal to CNBC.
Ginis worked for the part of Cohen's Point72 that uses computer-driven strategies to trade, an activity that is vulnerable to high-frequency traders using software programs to chase price moves. Imperative Execution is building a so-called dark pool where orders to buy and sell stocks are protected from traders hunting down bids and offers.
Other electronic trading sites have sprouted up to combat high frequency trading, including IEX, or Investors Exchange. Imperative's dark pool, called IntelligentCross, was approved by the SEC earlier this year, and the Stamford, Conn., company aims to start trading in May.
Read the full WSJ story here.