Photo by Ryan Lowry BusinessweekCEO Ratterman BATS Bloomberg HQ in Kansas CityLong after the market closes on January 9, Joe Ratterman, chief executive of BATS Global Markets, was in his office trying on the understanding how to keep your computer error smaller than the killing business. Its programmers just found an error in the code of the company which, for four years, has led to hundreds of thousands of transactions to be bought and sold at the wrong price. BATS Running an acronym for Alternative Trading System Better and BATS Global Markets as the third largest electronic stock exchange in the U.S. is stealing business from rivals many older NYSE (Nyx) and Nasdaq (NDAQ) since it opened in 2006. On a typical day, BATS is administered about 12 percent of the share traded on public markets in the U.S., about 750 million shares. It managed this with only 160 employees and headquarters away from Wall Street and other financial centers, with a two-story office complex along the interstate in Lenexa, Kan., A suburb of Kansas City. Notwithstanding the above, BATS does not have a lock on the honesty of the financial markets. No no. As irregularities in the bank MF Global Futures and Hedge fund traders, and more proven again and again, trust is everything, and then it was gone, the finance company can collapse overnight.
VIDEO: Bats Market Rules Blamed for Mishaps
Sitting at his desk, Ratterman poured through a detailed report has shown that, since October 2008, BATS has average error of about 410 per day, which could cost around $ 420,000 market overall. It is a small amount by the standards of Wall Street, and owned no danger to the future of a healthy company. However BATS still recovering from near-death experiences. Less than a year earlier, on March 23, 2012, BATS is planned to start listing the company on the stock exchange, such as the NYSE and Nasdaq are doing, and the IPO itself. To mark a major step forward, BATS is the first listed company in the stock itself, ticker BATS marks. Agents of insurance company worth $ 810 million in 2010, and was prepared to offer $ 100 million in stock. As the transition process began offering bargain, the bug that causes the BATS platform to stop receiving incoming orders symbols from A to BF, including BATS and Apple (AAPL), which fell sharing to a low of $ 542 before trading was halted. (Even Apple is listed on Nasdaq, as all stocks traded sharing a lot, and that means that the mini-crash felt throughout the market.) Trade BATS compromise caused its own share drop from $ 16 in less than a penny.
Story: Following BATS NYSE In the Dark
Finally got Ratterman IPO morning. What should a banner moment rather BATS advised not ready for the big leagues and popular fears reinforced in electronic commerce in general. The new market looks so fast and big and complex that even the builders of the system 'will not be able to control them, even when they take themselves public. Manifest MIT tagapagpananaliksik Lynne Markus prompt to warn the potential for disaster similar to trade mortgage crisis and spur the Securities and Exchange Commission to set up a new monitoring system for computerized traders. And now there's a problem with the system of trade BATS again. For the fiscal authorities, Ratterman unusual. At 46, he has a shaved head, wearing square-rimmed glasses, and classic sports, casual programmer polo dress shirts, jeans, and sneakers business casual. He is also a devout Christian, who spent her spare time driving around Kansas City to deliver food and blankets at home. He will have a private plane, the mode of the master of the universe, but he flew alone, and not Cannes, but for a home in Wyoming. He was also committed to the extreme level of transparency that helps BATS do more than survive the disaster under his leadership, thrive. BATS earned $ 100 million before interest, taxes, and other non-cash items in 2012. (Ratterman compensation in 2010, according to the SEC filings of the company, was $ 2,480,000.)
Story: The welfare Bats: When Machine embarrass their masters
After two exchanges of magic processing in less than a year, Ratterman decided to inform the customer immediately. He helped draw up a detailed description released to 06:40 ET, the exact time frame for errors and incidents forecast along time to patch the problem. The next day it was all financial news. Blowback is fierce, as expected, but Ratterman quietly absorbed either wonderful or know. The magazine has an interview scheduled with him today, instead of canceling, he met with reporters after spending time fielding calls from other media outlets. "It is strange, but really we make a better system to find it," he said this afternoon. His gaze fell on a small figure Yoda perched on the end of his desk. "We are in an evolutionary path toward better, not worse." Outside the glass wall of his office, trading floor operations empty, empty expanse of computer terminals and monitors The dark walls. About 40 workers were sent to a remote location to test the company's backup system in case of a natural disaster. Ratterman hold emergency drills such as monthly, and decided not to cancel the good. He was determined not to let a crisis little damage anything. "It is not the most pleasant thing to look forward to when you said to yourself," he said. "But I do as a normal business day as much I can, so I'll go with my wife and a good night." Last year, a few days after the IPO uprooted BATS, Peter Buckley, a former board members are personally invested $ 150,000 in exchange, send framed printed Union Jack Ratterman with the slogan now hanging in the office of Ratterman "Keep Calm and carry.". It was a great gesture, but not necessary to remind Ratterman. Michael Richter, a current member of the board, said the board was disappointed BATS but never considered oust CEO. "This is not a case of bad judgment or we lose confidence in his ability to manage," he said. "We fumbled the ball and the clock ran out. We are the Champions "Some cause Ratterman willingness to take the blame and the ability to turn the mistakes into profits, starting with a letter of apology he wrote after failed IPO ... "I actually came right out and said we messed up and we expect better from ourselves and we will do better," he said. He was also careful to explain that he always saw the broader minimal consequences. "We just decided to walk away and come back another day," he said. "I probably would not want to go through that again if I do not, but I do not see how this negatively affected our business at this time."
VIDEO: Bats CEO Says System Fails Its Own
Suggest two days after the failure of the IPO, the founder Dave Cummings wrote a letter to the industry push BATS continue to offer even if it means settling for a lower price. Cummings noted that it was his personal opinion, not the company line, but press notice about the same time as it Ratterman MEA culpa, making it seem as if the former CEO and current board member of the public may be trying to dictate the next course of action. Ratterman keep calm and carry. "People see it as, you know, Dave, just her style unfiltered," he said. "I do not give a letter that he has done for my purposes. The letter that we reached the right man "because he said the company has no plans to go public ... Ratterman agreed to step down as chairman of the board, but said he also to provide freedom to the board if BATS became public. Richter, who noted that the internal subcommittee examines the failure of the IPO, agrees: "Council has not taken a significant diversion," he said, meaning Ratterman still have confidence in the board. Although there is no stock trading on BATS market, Ratterman found a way to repay the investors. In August he gave $ 100 million in dividends, then get a loan to pay an extra $ 300 million in December. Ratterman and most employees sharing of undisclosed payments, even though 97 percent of the money went to big investors. As a result, Richter said, was "very satisfactory." When Ratterman was 9 years old, his father, a maintenance worker signs Card, dies in water skiing accident, leaving his mother, who works in the accounting department of industrial gas companies, to improve herself and her sister. During high school in Kansas City, Mo., In the early 1980s, Ratterman taught himself programming on the Apple II. He graduated from the University of Central Missouri in 1988 with a double major in mathematics and computer science. Once he is considered to be a math teacher but changed his mind after visiting the school field problems. "I got a taste of what it's like a teacher when no one wanted to teach," he said.
Stories: Bats: The epic fail of the worst IPO ever
Ratterman spent the next decade and a half career at Bridge Information Systems, a provider of financial information that have since been acquired by Thomson Reuters (TRI), and then Labone, medical examinations and diagnostic testing company later acquired by of Quest Diagnostics. In 2004, Ratterman realized he missed the securities industry, so he obtained his Series 7 license brokers', among others, and went to work for Tradebot Systems, an automated trading firm that ultimately lead to Inspiration for BATS. Tradebot powered from a small brick with a green awning Ratterman called "Mayberry," a quaint little shopping district in North Kansas City. Cummings, a former programmer turned day trader in Kansas City Board of Trade, established in 1999 Tradebot. In June 2005, Cummings, Ratterman, and 11 other employees of Tradebot rental shop next door and put a whiteboard draw their own exchange. Cummings became the first CEO of BATS that. Ratterman, chief operating after the head, replaced in July 2007 before BATS registered with the SEC as a formal exchange. (Cummings continues to represent Tradebot the board of directors,. He denied that interviewed for this story) Although the initial founders will not disclose how much they originally invested, rent is cheap, about $ 10 per square foot , and employees do not take much alive and well in Midwestern cities. They built their initial platform for less than $ 10 million, Ratterman said. Photo by Ryan Lowry Bloomberg BusinessweekIn Kansas, BATS is bellBATS own small business model is simple: as the main exchange rate, and eliminate them at that price. When first launched on January 27, 2006, the company has accumulated about 1 ¢ per 100 share traded, the competitors, trade at the same speed, getting as much as 10 ¢ at the time. "We certainly have the mentality of kill the dragon, but not snob," said Ratterman, credit Cummings, his team, and the Lord of success. "We just said, 'Hey, we have to go up and challenge the big guys. '"
Stories: Sale, NYSE has shown It lost $ 2.8 billion of value
Although the location of the headquarters, BATS is from the beginning of the rebellion was established in partnership with many traders and institutions are frustrated by the NYSE and Nasdaq duopoly. Among the first investors in Getco, high frequency trading firm established in Chicago, and Wedbush, an investment bank based in Los Angeles representing more speed commercial clients. In 2006, Credit Suisse (CS), Morgan Stanley (MS), Lime brokerage, and Lehman Brothers join. To attract business and investment, Cummings wrote about mission BATS newsletter and e-mail it to Wall Street trader and analyst. (In one, dated February 2007, he reported to Nasdaq CEO Robert Greifeld called "bully" who treats her clients as "hostages.") Deutsche Bank (DB), JPMorgan Chase (JPM), Citigroup (C), and Bank of America Merrill Lynch (BAC) since signed on as an investor. In all, BATS raised a total of $ 159 million in funding. According to SEC filings, nearly 32 percent of the company's annual revenue in 2010 came from trades made by investors and partners. "They have the advantage of having the major players in the market as the owner, so it's really to steal a march on some older players and become a major competitor trade landscape," ; said Justin Schack, Rosenblatt Securities partners. At the end of last year, BATS average of 713 million share of the match day, more than 825 percent increase from the first year of business. "We thought, 'We knew we had something good, we just need them to try it,'" said Ratterman. We have started to list some sharing, as planned, though still not alone. In recent years, BATS has recruited issuers of exchange-traded funds such as ProShares and BlackRock (BLK) iShares host the 18 securities exchange. "In the ETF issuer, once convince them that you have a program that works and they like, they've product after product after product," Ratterman said. "Operate in creating a connection, and it generates a lot of impact." BATS is expanding into other markets in the United States and other countries. Over the past year, the U.S. began Ratterman exchange option and enter the European equity market. In April, five months after the acquisition of Chi-X Europe, the largest European operator in the stock market, BATS has done to its own technology platforms. BATS Chi-X Europe to end the year hold nearly 25 percent of the European market. As a former member of the board Buckley said, "It is a plug-and-play exchange building to these people. They can do it anywhere "Two weeks after coming clean on the latest error., Ratterman said BATS Off the preliminary estimate of losses. Instead of causing a loss of $ 420,000, the final tally closer to $ 17,000 more than 12,000 incidents in total. In many cases, this means that BATS will owe just a few dollars per customer.
Stories: Lights dim for the lure of NYSE Trading
According to spokesman Randy Williams, Ratterman not afford to wait for the final accounting before reporting a potential worst-case scenario. "He said, 'We have to let the customer know. I would not be able to sleep if we do not tell the customer, '"Williams recalled. "He did not fool anyone because it is not in accordance with his faith." He said Ratterman rely more strongly on prayer to help guide business decisions due to failure of the IPO. "I have strong faith before, but I always thought I had a church and how I live in the community and all that God cares, he does not care about the business," he said. "That is not the way it is. He taught me that I expect him to do it. "After work one night in mid-February, he climbed into a delivery truck, which he owned and which he called" The Van Vittle, "to start its activities provide clothing, bedding, and food for the house. (Ratterman will not share the name of charity because he did not want the recipient to know that he is the founder and not just "Joe," a volunteer they see regularly.) Before hitting the road, he stopped at a temporary warehouse- set up in a corner BATS gym to collect a wide range of jackets, hats, gloves, blankets, water bottles, including 50 sandwiches delivered from a local sub shop. Dark and below freezing. His wife, Sandy, sitting near the sliding door of the van.
Stories: New York Stock Exchange Nasdaq Pad Lead Over It
At each stop, with a fixed inter Ratterman, calling them by their first names and asked about people that are not visible. "Our foundation is not about making large scale and get the headlines, it is about responding to specific, individual needs are targeted," he said. To find out what the stock onboard, he tracked handout every stop he can not help but do the analysis on-the-spot. As he put it, "Under the bridge is a hit rate of 100 percent of people's needs." Maybe under the bridge that he had discovered the secret to his management style, after all, what the crisis than the computer?
VIDEO: Bats Market Rules Blamed for Mishaps
Sitting at his desk, Ratterman poured through a detailed report has shown that, since October 2008, BATS has average error of about 410 per day, which could cost around $ 420,000 market overall. It is a small amount by the standards of Wall Street, and owned no danger to the future of a healthy company. However BATS still recovering from near-death experiences. Less than a year earlier, on March 23, 2012, BATS is planned to start listing the company on the stock exchange, such as the NYSE and Nasdaq are doing, and the IPO itself. To mark a major step forward, BATS is the first listed company in the stock itself, ticker BATS marks. Agents of insurance company worth $ 810 million in 2010, and was prepared to offer $ 100 million in stock. As the transition process began offering bargain, the bug that causes the BATS platform to stop receiving incoming orders symbols from A to BF, including BATS and Apple (AAPL), which fell sharing to a low of $ 542 before trading was halted. (Even Apple is listed on Nasdaq, as all stocks traded sharing a lot, and that means that the mini-crash felt throughout the market.) Trade BATS compromise caused its own share drop from $ 16 in less than a penny.
Story: Following BATS NYSE In the Dark
Finally got Ratterman IPO morning. What should a banner moment rather BATS advised not ready for the big leagues and popular fears reinforced in electronic commerce in general. The new market looks so fast and big and complex that even the builders of the system 'will not be able to control them, even when they take themselves public. Manifest MIT tagapagpananaliksik Lynne Markus prompt to warn the potential for disaster similar to trade mortgage crisis and spur the Securities and Exchange Commission to set up a new monitoring system for computerized traders. And now there's a problem with the system of trade BATS again. For the fiscal authorities, Ratterman unusual. At 46, he has a shaved head, wearing square-rimmed glasses, and classic sports, casual programmer polo dress shirts, jeans, and sneakers business casual. He is also a devout Christian, who spent her spare time driving around Kansas City to deliver food and blankets at home. He will have a private plane, the mode of the master of the universe, but he flew alone, and not Cannes, but for a home in Wyoming. He was also committed to the extreme level of transparency that helps BATS do more than survive the disaster under his leadership, thrive. BATS earned $ 100 million before interest, taxes, and other non-cash items in 2012. (Ratterman compensation in 2010, according to the SEC filings of the company, was $ 2,480,000.)
Story: The welfare Bats: When Machine embarrass their masters
After two exchanges of magic processing in less than a year, Ratterman decided to inform the customer immediately. He helped draw up a detailed description released to 06:40 ET, the exact time frame for errors and incidents forecast along time to patch the problem. The next day it was all financial news. Blowback is fierce, as expected, but Ratterman quietly absorbed either wonderful or know. The magazine has an interview scheduled with him today, instead of canceling, he met with reporters after spending time fielding calls from other media outlets. "It is strange, but really we make a better system to find it," he said this afternoon. His gaze fell on a small figure Yoda perched on the end of his desk. "We are in an evolutionary path toward better, not worse." Outside the glass wall of his office, trading floor operations empty, empty expanse of computer terminals and monitors The dark walls. About 40 workers were sent to a remote location to test the company's backup system in case of a natural disaster. Ratterman hold emergency drills such as monthly, and decided not to cancel the good. He was determined not to let a crisis little damage anything. "It is not the most pleasant thing to look forward to when you said to yourself," he said. "But I do as a normal business day as much I can, so I'll go with my wife and a good night." Last year, a few days after the IPO uprooted BATS, Peter Buckley, a former board members are personally invested $ 150,000 in exchange, send framed printed Union Jack Ratterman with the slogan now hanging in the office of Ratterman "Keep Calm and carry.". It was a great gesture, but not necessary to remind Ratterman. Michael Richter, a current member of the board, said the board was disappointed BATS but never considered oust CEO. "This is not a case of bad judgment or we lose confidence in his ability to manage," he said. "We fumbled the ball and the clock ran out. We are the Champions "Some cause Ratterman willingness to take the blame and the ability to turn the mistakes into profits, starting with a letter of apology he wrote after failed IPO ... "I actually came right out and said we messed up and we expect better from ourselves and we will do better," he said. He was also careful to explain that he always saw the broader minimal consequences. "We just decided to walk away and come back another day," he said. "I probably would not want to go through that again if I do not, but I do not see how this negatively affected our business at this time."
VIDEO: Bats CEO Says System Fails Its Own
Suggest two days after the failure of the IPO, the founder Dave Cummings wrote a letter to the industry push BATS continue to offer even if it means settling for a lower price. Cummings noted that it was his personal opinion, not the company line, but press notice about the same time as it Ratterman MEA culpa, making it seem as if the former CEO and current board member of the public may be trying to dictate the next course of action. Ratterman keep calm and carry. "People see it as, you know, Dave, just her style unfiltered," he said. "I do not give a letter that he has done for my purposes. The letter that we reached the right man "because he said the company has no plans to go public ... Ratterman agreed to step down as chairman of the board, but said he also to provide freedom to the board if BATS became public. Richter, who noted that the internal subcommittee examines the failure of the IPO, agrees: "Council has not taken a significant diversion," he said, meaning Ratterman still have confidence in the board. Although there is no stock trading on BATS market, Ratterman found a way to repay the investors. In August he gave $ 100 million in dividends, then get a loan to pay an extra $ 300 million in December. Ratterman and most employees sharing of undisclosed payments, even though 97 percent of the money went to big investors. As a result, Richter said, was "very satisfactory." When Ratterman was 9 years old, his father, a maintenance worker signs Card, dies in water skiing accident, leaving his mother, who works in the accounting department of industrial gas companies, to improve herself and her sister. During high school in Kansas City, Mo., In the early 1980s, Ratterman taught himself programming on the Apple II. He graduated from the University of Central Missouri in 1988 with a double major in mathematics and computer science. Once he is considered to be a math teacher but changed his mind after visiting the school field problems. "I got a taste of what it's like a teacher when no one wanted to teach," he said.
Stories: Bats: The epic fail of the worst IPO ever
Ratterman spent the next decade and a half career at Bridge Information Systems, a provider of financial information that have since been acquired by Thomson Reuters (TRI), and then Labone, medical examinations and diagnostic testing company later acquired by of Quest Diagnostics. In 2004, Ratterman realized he missed the securities industry, so he obtained his Series 7 license brokers', among others, and went to work for Tradebot Systems, an automated trading firm that ultimately lead to Inspiration for BATS. Tradebot powered from a small brick with a green awning Ratterman called "Mayberry," a quaint little shopping district in North Kansas City. Cummings, a former programmer turned day trader in Kansas City Board of Trade, established in 1999 Tradebot. In June 2005, Cummings, Ratterman, and 11 other employees of Tradebot rental shop next door and put a whiteboard draw their own exchange. Cummings became the first CEO of BATS that. Ratterman, chief operating after the head, replaced in July 2007 before BATS registered with the SEC as a formal exchange. (Cummings continues to represent Tradebot the board of directors,. He denied that interviewed for this story) Although the initial founders will not disclose how much they originally invested, rent is cheap, about $ 10 per square foot , and employees do not take much alive and well in Midwestern cities. They built their initial platform for less than $ 10 million, Ratterman said. Photo by Ryan Lowry Bloomberg BusinessweekIn Kansas, BATS is bellBATS own small business model is simple: as the main exchange rate, and eliminate them at that price. When first launched on January 27, 2006, the company has accumulated about 1 ¢ per 100 share traded, the competitors, trade at the same speed, getting as much as 10 ¢ at the time. "We certainly have the mentality of kill the dragon, but not snob," said Ratterman, credit Cummings, his team, and the Lord of success. "We just said, 'Hey, we have to go up and challenge the big guys. '"
Stories: Sale, NYSE has shown It lost $ 2.8 billion of value
Although the location of the headquarters, BATS is from the beginning of the rebellion was established in partnership with many traders and institutions are frustrated by the NYSE and Nasdaq duopoly. Among the first investors in Getco, high frequency trading firm established in Chicago, and Wedbush, an investment bank based in Los Angeles representing more speed commercial clients. In 2006, Credit Suisse (CS), Morgan Stanley (MS), Lime brokerage, and Lehman Brothers join. To attract business and investment, Cummings wrote about mission BATS newsletter and e-mail it to Wall Street trader and analyst. (In one, dated February 2007, he reported to Nasdaq CEO Robert Greifeld called "bully" who treats her clients as "hostages.") Deutsche Bank (DB), JPMorgan Chase (JPM), Citigroup (C), and Bank of America Merrill Lynch (BAC) since signed on as an investor. In all, BATS raised a total of $ 159 million in funding. According to SEC filings, nearly 32 percent of the company's annual revenue in 2010 came from trades made by investors and partners. "They have the advantage of having the major players in the market as the owner, so it's really to steal a march on some older players and become a major competitor trade landscape," ; said Justin Schack, Rosenblatt Securities partners. At the end of last year, BATS average of 713 million share of the match day, more than 825 percent increase from the first year of business. "We thought, 'We knew we had something good, we just need them to try it,'" said Ratterman. We have started to list some sharing, as planned, though still not alone. In recent years, BATS has recruited issuers of exchange-traded funds such as ProShares and BlackRock (BLK) iShares host the 18 securities exchange. "In the ETF issuer, once convince them that you have a program that works and they like, they've product after product after product," Ratterman said. "Operate in creating a connection, and it generates a lot of impact." BATS is expanding into other markets in the United States and other countries. Over the past year, the U.S. began Ratterman exchange option and enter the European equity market. In April, five months after the acquisition of Chi-X Europe, the largest European operator in the stock market, BATS has done to its own technology platforms. BATS Chi-X Europe to end the year hold nearly 25 percent of the European market. As a former member of the board Buckley said, "It is a plug-and-play exchange building to these people. They can do it anywhere "Two weeks after coming clean on the latest error., Ratterman said BATS Off the preliminary estimate of losses. Instead of causing a loss of $ 420,000, the final tally closer to $ 17,000 more than 12,000 incidents in total. In many cases, this means that BATS will owe just a few dollars per customer.
Stories: Lights dim for the lure of NYSE Trading
According to spokesman Randy Williams, Ratterman not afford to wait for the final accounting before reporting a potential worst-case scenario. "He said, 'We have to let the customer know. I would not be able to sleep if we do not tell the customer, '"Williams recalled. "He did not fool anyone because it is not in accordance with his faith." He said Ratterman rely more strongly on prayer to help guide business decisions due to failure of the IPO. "I have strong faith before, but I always thought I had a church and how I live in the community and all that God cares, he does not care about the business," he said. "That is not the way it is. He taught me that I expect him to do it. "After work one night in mid-February, he climbed into a delivery truck, which he owned and which he called" The Van Vittle, "to start its activities provide clothing, bedding, and food for the house. (Ratterman will not share the name of charity because he did not want the recipient to know that he is the founder and not just "Joe," a volunteer they see regularly.) Before hitting the road, he stopped at a temporary warehouse- set up in a corner BATS gym to collect a wide range of jackets, hats, gloves, blankets, water bottles, including 50 sandwiches delivered from a local sub shop. Dark and below freezing. His wife, Sandy, sitting near the sliding door of the van.
Stories: New York Stock Exchange Nasdaq Pad Lead Over It
At each stop, with a fixed inter Ratterman, calling them by their first names and asked about people that are not visible. "Our foundation is not about making large scale and get the headlines, it is about responding to specific, individual needs are targeted," he said. To find out what the stock onboard, he tracked handout every stop he can not help but do the analysis on-the-spot. As he put it, "Under the bridge is a hit rate of 100 percent of people's needs." Maybe under the bridge that he had discovered the secret to his management style, after all, what the crisis than the computer?
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