FILE PHOTO: Businessman Vincent Viola enters Trump Tower in Manhattan, New York City, U.S., December 16, 2016. REUTERS/Andrew Kelly/File Photo

WASHINGTON (Reuters) - Vincent Viola, an Army veteran and founder of a high-speed trading firm nominated by U.S. President Donald Trump to be secretary of the Army, withdrew his name from consideration on Friday, a U.S. official said.

“Secretary Mattis is disappointed but understands and respects Mr. Viola’s decision,” a Pentagon statement said, adding that Secretary of Defense Jim Mattis would recommend another candidate soon.

The Military Times, which first reported the news, cited Viola’s inability to get around Defense Department rules concerning his family businesses as the reason for withdrawing his name.

Viola is a former chairman of the New York Mercantile Exchange and is a leader in electronic trading. Along with Virtu CEO Douglas Cifu, he bought the Florida Panthers of the National Hockey League in 2013.