Nov. 30 (Bloomberg) -- Tradebot Systems LLC, one of the largest U.S. high-frequency trading firms, promoted Eric Boles to president and chief executive officer, according to an e-mailed notice from Chairman Dave Cummings.
Boles, who joined the company as a trader in 2003, was global head of trading at the Kansas City, Missouri-based firm, Cummings said in the message. He replaces Rob Alumbaugh, who became president in 2002 and CEO three years later. Alumbaugh remains on the staff, will attend strategy meetings and mentor employees while pursuing projects, the letter said.
“When you reach a certain level, time becomes more important than the money,” Cummings wrote. Cummings said Alumbaugh ran Tradebot while he founded the company that became Bats Global Markets Inc. in 2005. Bats is the third-largest U.S. stock exchange operator.
Tradebot buys and sells more than 5 percent of U.S. equities on some days, according to the company’s website. Cummings founded the firm in 1999 out of a spare bedroom with a $10,000 investment, according to information on the website.
As part of management changes, Will Bryson will become global head of trading. Andy O’Hara will be vice president for business development in addition to his role involving the company’s international business.
Alumbaugh will get a “minimal” salary while continuing to get bonuses from Tradebot, Cummings said.
Cummings said he took half the 30-person company with him to start Bats more than six years ago. The Lenexa, Kansas-based venue began trading U.S. equities in January 2006, European shares in 2008 and U.S. options in 2010. It’s owned by 11 brokers and financial firms including Tradebot, Bank of America Corp. in Charlotte, North Carolina; Citigroup Inc. and Morgan Stanley in New York; Getco LLC in Chicago and Zurich-based Credit Suisse Group AG.
Bats accounted for 12 percent of U.S. stock trading in October. It received approval from U.K. antitrust authorities last week to acquire Chi-X Europe Ltd., the largest European alternative trading venue. The combined company will account for about a quarter of European equities trading, Bats said.
Joseph Ratterman, the current chairman, president and CEO of Bats, was a Tradebot employee who took over the company after Cummings returned to Tradebot in 2007.
To contact the reporter on this story: Nina Mehta in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Nick Baker at email@example.com.