Assets of Chicago trading firm Ronin Capital were auctioned off Friday, futures exchange operator CME Group said.
Ronin, which traded at CME, "was unable to meet its capital requirements going forward," CME said in a statement.
Trading firms sometimes fail when financial markets become too volatile, because they may take a position that loses too much money in a given period, with no opportunity to recover before they are required by the exchange to make payments for their positions.
Ronin, owned by John Stafford III and his father, John Stafford Jr., couldn't immediately be reached for comment. Ronin was one of many proprietary trading firms in Chicago that trade for its owners and not clients.
CME's clearing unit, the part of its business that guarantees trades by making sure parties pay up, auctioned off Ronin's portfolios.
This article originally appeared in Crain's Chicago Business, a sister publication of Pensions & Investments.
