Earlier this week, exchange operator BATS Global Markets announced that its president William O’Brien was leaving, effective immediately. His exit follows remarks he made in April when he incorrectly stated that BATS’ Direct Edge exchanges use high-speed market data feeds to provide clients with pricing data.
BATS serves customers in the U.S. and European equities and listings industries, and the U.S. options market, officials say. The company, which recently merged with Direct Edge Holdings, operates four equities exchanges – BZX Exchange, BYX Exchange, EDGA Exchange, and EDGX Exchange.
After New York Attorney General Eric Schneiderman reportedly pressured BATS to clarify the situation, the exchange operator had to later acknowledge that its EDGA and EDGX venues exploit the slower, Securities Information Processor (SIP) consolidated feeds.
The slower feeds put market participants at a disadvantage when they compete against high-frequency traders (HFTs) that use direct feeds to trading venues.
O’Brien’s assertion about the use of direct feeds emerged during an on-air CNBC report about the subject of HFT, which is the focus of Michael Lewis’ nonfiction book “Flash Boys.” A key source for the book, Brad Katsuyama, the founder of IEX Group Inc. and an HFT opponent, challenged O’Brien during the broadcast.
IEX touts its dark pool as “the first equity trading venue owned exclusively by a consortium of buy-side investors, including mutual funds, hedge funds, and family offices” that provides “a fair-access platform to any qualified broker dealer,” according to its website.
Joe Ratterman, BATS CEO and president
In O’Brien’s absence, BATS CEO Joe Ratterman will take on the role of president. Ratterman has done this before when he held both posts from June 2007 through January 2014, say BATS officials. A founding employee, Ratterman has been with BATS since June 2005.
The rest of BATS’ executive management team remains intact, say BATS officials.
The top officers who report directly to Ratterman are: Chris Isaacson, executive vice president, global Chief Information Officer (CIO); Tami Schademann, executive vice president, Chief Regulatory Officer (CRO); Eric Swanson, executive vice president, general counsel; Mark Hemsley, CEO of BATS Chi-X Europe; Brian Schell, executive vice president, Chief Financial Officer (CFO); and Bryan Harkins, executive vice president, head of U.S. Markets.
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