Chief Executive Officer
KCG Holdings chief executive Daniel Coleman is
constantly on the lookout for ways to leverage technology.
Since July 2013, when Jersey City, New Jerseybased KCG
was formed through the merger of Chicago-based high frequency
trading pioneer Getco (where he had been CEO) and troubled
broker-dealer Knight Capital Group, Coleman has been selling
off his companys less tech-focused operations. KCG
announced in February that Citadel Securities was buying its
New York Stock Exchange designated market-making (DMM)
business. The sale of the DMM was the final step to where
we are very much a technology-driven firm, says Coleman,
who turns 52 in August and worked at UBS and predecessor firms
for more than two decades before joining Getco in 2010.
We still have some businesses that require over-the-phone
conversations with clients, but even with those most of the
order flow comes in via technology. During the past year
Coleman has been hoarding chief technology officers, starting
with the hiring last summer of REDI Holdings CTO Josh
Schubkegel. In December he brought back Michael Blum, who
headed Getco Execution Services from 2009 to 2012 before
leaving to become CTO of Chicago-based hedge fund firm Teza
Technologies. In March, Coleman recruited Brian Freyburger, who
was CTO of high frequency trading firm Tower Research Capital.
Schubkegel and Blum are both working on client-facing
technologies; Freyburger is rebuilding KCGs core
market-making system. Weve given Brian and his team
the luxury of building from scratch something that will be a
next-generation trading system, says Coleman, an Alabama
native who commutes weekly from Birmingham to KCGs
offices in New York and Jersey City. To some extent, Mike
is doing the same thing on the client-facing side. KCG,
which is listed on the NYSE, has profited from this years
increased market volatility. In the first quarter its U.S.
equity market-making revenue grew 22 percent year over year and
its BondPoint trading venue set a quarterly record, with
average daily fixed-income par value increasing 32 percent.
The 2016 Tech 50: Making Financial Services Faster, Cheaper,
Bigger for more.
The 2016 Tech 50
Click below to view profiles