Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues Meeting
June 22, 2010
Panel One — Exchange Observations
Craig S. Donohue, Chief Executive Officer, the Chicago Mercantile Exchange
Edward J. Joyce, President & Chief Operating Officer, Chicago Board Options Exchange, Inc.
Edward J. Joyce is President and Chief Operating Officer of Chicago Board Options Exchange (CBOE). He began serving in that capacity in June 2000, following his appointment by the CBOE Board of Directors.
Mr. Joyce, who has held various positions with the Exchange for more than 36 years, previously served as Executive Vice President in charge of business development. In that capacity, Mr. Joyce was responsible for coordinating various key activities central to relationship management, including marketing, member trading services and The Options Institute, the educational arm of CBOE.
Mr. Joyce began his career with the Exchange in 1974 and has held positions of increasing responsibility in the areas of trading procedures, operations, business development and regulation. He was named Executive Vice President of trading operations in 1987 and served as Chief Regulatory Officer from 2002 to 2003.
Mr. Joyce serves on the Board of Directors of the Options Clearing Corporation. Additionally, he has previously served on the Board of Directors of the CBOE Futures Exchange (CFE), the National Stock Exchange and OneChicago Futures Exchange. Mr. Joyce is also on the advisory board of the Illinois Council on Economic Education. He holds a B.S. in Business Administration from Illinois State University and an M.B.A. from DePaul University.
Joseph Mecane, Executive Vice President & Co-Head of U.S. Listing and Cash Execution, NYSE Euronext
Joe Mecane is an Executive Vice President with NYSE Euronext and serves as the Co-Head of the U.S. Listing and Cash Execution businesses. In this role, Mr. Mecane oversees strategy, business development and operations for NYSE Euronext's U.S. equities platforms and ventures including the New York Stock Exchange, NYSE Arca and NYSE Amex. He was previously EVP and Chief Administrative Officer of U.S. Markets, responsible for U.S. market planning, analysis and project oversight.
Prior to joining NYSE, Mr. Mecane was Managing Director in the Equities Division of the UBS Investment Bank, responsible for overseeing the Broker Services business. He joined UBS in November 2004, when the firm acquired Schwab Capital Markets, where he was a Managing Director and Chief Operating Officer and oversaw Schwab's Broker-Dealer business. Prior to joining Schwab in 2003, Mr. Mecane held a number of positions at Knight Securities.
In addition to serving as a Governor of the Security Traders Association, Mr. Mecane is also a member of its Trading Issues Committee. His activities in other organizations include serving on the Trading Issues Committees of the Securities Industry and Financial Markets Association, the Security Traders Association of New York and the Wall Street Committee of the St. Jude Children's Research Hospital. He earned his M.B.A. with honors from The Wharton School, University of Pennsylvania.
William O'Brien, Chief Executive Officer, Direct Edge
William O'Brien joined Direct Edge as Chief Executive Officer in July 2007. As CEO, he is responsible for the management of all strategic, operational and administrative affairs of the company.
Prior to his appointment to Direct Edge, Mr. O'Brien was Senior Vice President, New Listings at The Nasdaq Stock Market, Inc. with responsibility for all Nasdaq efforts to increase U.S. listings, including IPOs, exchange transfers and structured products. He also was Nasdaq's Senior Vice President, Market Data Distribution, responsible for the sales, management and business direction of Nasdaq's real-time and historical market data business.
Mr. O'Brien joined Nasdaq in 2004 by way of Brut, LLC, where he had been Chief Operating Officer since 2002, helping lead the company through a period of significant growth and its acquisition by Nasdaq. He originally joined Brut as Senior Vice President and General Counsel in 2000. Mr. O'Brien also was Vice President and Assistant General Counsel at Goldman Sachs from 1998 to 2000 and was an attorney in Orrick, Herrington & Sutcliffe LLP's Market Regulation Group from 1995 to 1998. He has a B.A. from the University of Notre Dame and a J.D. from the University of Pennsylvania School of Law.
Joseph Ratterman, President & Chief Executive Officer, BATS Exchange, Inc.
Joe Ratterman is president, chief executive officer and chairman of BATS Global Markets, Inc., the parent company of the BATS Exchange and BATS Europe. Mr. Ratterman joined BATS as a founding employee in 2005 and initially served as executive vice president and chief operating officer until mid-2007.
Prior to joining BATS, Mr. Ratterman was vice president of business development at Tradebot Systems. Previously, he was chief information officer at LabOne, the Lenexa, Kan.-based health screening and diagnostic testing company now owned by Quest Diagnostics. Before being named an officer at LabOne, Mr. Ratterman was chief technology officer at Bridge Information Systems, where he was employed from 1990 to 2002.
An accomplished water skier, rock climber, professional photographer, and instrument-rated commercial pilot, Mr. Ratterman holds a degree in mathematics and computer science from Central Missouri State University, as well as Series 7, 24, 27, 55 and 66 licenses.
Chuck Vice, President & Chief Operating Officer, the Intercontinental Exchange, Inc.
Chuck Vice is a founding member of IntercontinentalExchange (NYSE:ICE). He has served as Chief Operating Officer since July 2001 and President since October 2005. Mr. Vice works with the executive management team in setting corporate objectives and strategies and has day-to-day responsibility for technology, operations, and product development.?Mr. Vice has been a leader in the management and application of information technology in the energy industry for nearly two decades. Prior to the formation of ICE in 2000, Mr. Vice was a Director at Continental Power Exchange (CPEX), an electronic spot market for electric power. Before joining the CPEX startup in 1994, he was a Principal at Energy Management Associates, where he provided consulting services to the electric power and natural gas industries. From 1985 to 1988, Mr. Vice was a Systems Analyst with Electronic Data Systems (General Motors) where he designed and marketed management information systems for auto, airline and financial service industry clients.??Mr. Vice earned a Bachelor of Science degree in Mechanical Engineering from the University of Alabama and a Master of Business Administration from the Owen Graduate School of Management at Vanderbilt University.
Panel Two — Perspectives on Liquidity
Leonard Amoruso, Senior Managing Director & General Counsel, Knight Capital Group
Mr. Amoruso oversees all legal, compliance, regulatory and market structure matters
for the Knight Capital Group, Inc. Mr. Amoruso has been General Counsel of the
Company since May 2007. Prior to his appointment, Mr. Amoruso was the Senior
Managing Director and Chief Compliance Officer of the Company since June 2003.
From October 1999 to June 2003, Mr. Amoruso served as Chief Compliance Officer and
Assistant General Counsel of the Company’s wholly-owned subsidiary, Knight Equity
Prior to joining the Company, Mr. Amoruso spent a decade with FINRA’s District 10
office in New York, most recently as Deputy Director.
Mr. Amoruso serves on numerous industry committees and is a frequent speaker at
industry conferences. He also currently serves on the Exchange Boards for Direct Edge.
Mr. Amoruso received a B.B.A. in Banking, Finance and Investments from Hofstra
University in 1986 and a J.D. from Hofstra University School of Law in 1989.
David Cummings, Owner & Chairman of the Board, Tradebot Systems
Dave Cummings is the owner and chairman of Tradebot Systems.
Tradebot is a broker-dealer specializing in High-Frequency Trading. Some days, Tradebot accounts for 5% to 10% of the total U.S. stock market volume. Dave started Tradebot in 1999 out of a spare bedroom of his house.
Dave is also the founder and former CEO of BATS Trading. Since its start in 2005, BATS became the 3rd largest stock market in America, providing competition to NASDAQ and the NYSE.
Dave holds a degree in Computer & Electrical Engineering from Purdue University. He is a life-long member of Platte Woods Methodist church. He lives in Parkville, Missouri with his wife and two kids.
Jeff Engelberg, Principal & Senior Trader, Southeastern Asset Management, Inc.
Jeff is a native of Memphis, TN, and a Vice President and Senior Trader at Southeastern Asset Management, Inc. Jeff joined Southeastern in 2007 and has over 11 years experience as a trader. Prior to Southeastern, Jeff spent 9 years in New York at a variety of trading positions, including listed equity trading at Morgan Stanley & Co., convertible-bond arbitrage at KBC Financial Products, and, a head-trader role at Fir Tree Partners, a multi-strategy hedge fund. Jeff holds the CFA designation and a BS and MBA from The Wharton School of the University of Pennsylvania.
Thomas Peterffy, Chairman & CEO, Interactive Brokers LLC
Thomas Peterffy is the Chairman and CEO of the Interactive Brokers Group, a global market making and brokerage firm with nearly $5 billion in equity capital.
The company's subsidiary Interactive Brokers LLC is a U.S. broker-dealer and futures commission merchant that provides high-speed, technology driven trading solutions to sophisticated individual clients, hedge funds, institutional investors, financial advisors and introducing brokers.
The company's subsidiary Timber Hill LLC was one of the world's first electronic market making firms and is a registered market maker and/or liquidity provider on all major U.S. futures and securities markets. The firm provides liquidity in over 450,000 individual products using automated market making systems overseen by a large risk management and technology staff.
In 1977, Mr. Peterffy joined the American Stock Exchange as an independent floor trader and formed the company known today as Interactive Brokers Group. The automated systems and risk management practices used by the company have been under continuous development ever since.
Today the firm makes markets and offers brokerage services in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 80 electronic exchanges and trading venues around the world. The firm has over 800 employees in offices located in the United States, Canada, the United Kingdom, Hong Kong, India, Australia, Japan and Switzerland.
Anoop Prasad, Managing Director, D.E. Shaw & Co.
Matt Schrecengost, Chief Operating Officer, Jump Trading LLC
My name is Matt Schrecengost, and I'm the Chief Operating Officer at Jump Trading. Jump is a proprietary trading firm based in Chicago that was founded in 1999, and today employs over 200 people. I have personally been with the firm since early 2001, evolving my role at Jump over the years from a trading floor clerk (at the CME) in 2001 into the COO of a completely electronic trading firm today. I have also spent time periods at Jump as a futures trader, as a trainer of traders, and as the Risk Manager of the firm. Jump Trading currently trades the futures markets globally, as well as the cash foreign exchange market, the U.S. cash bond market, and the U.S. and European equity markets.
David Weild IV, Capital Markets Advisor, Grant Thornton
David spearheads the capital markets group at Grant Thornton and is Chairman of Capital Markets Advisory Partners, a think tank for capital markets. He is a noted equities expert (private and public markets) and former Vice Chairman of The NASDAQ Stock Market. His work on the new issues market and market structure, published by Grant Thornton, has been cited broadly (e.g., The Economist, Wall Street Journal, Financial Times) and he has appeared on BloombergTV, CNBC, Fox News and other television. He was a member of the NYSE and NVCA's Blue Ribbon Panel to restore liquidity in the US venture capital industry and his work was cited in the NVCA's final report. In addition, Mr. Weild was recently asked by the International Stock Exchange Executives Emeriti (ISEEE) to be Chairman of a newly formed Small Business Financing Crisis Task Force.
Prior to NASDAQ, David spent 14 years at Prudential Securities in a number of senior management roles, including President of eCommerce, Head of Corporate Finance, Head of Technology Investment Banking and Head of Equity Capital Markets in New York, London and Tokyo. He co-chaired the firm's strategic planning committee for equity research, institutional sales, trading and investment banking.
David holds an MBA from the Stern School of Business and a BA from Wesleyan University. He studied on exchange at The Sorbonne, Ecole des Haute Etudes Commerciales and The Stockholm School of Economics.