The Path to Electronic Trading captures the pivotal moment of technological transformation in financial markets through the eyes of those who experienced it firsthand.

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Gerry Corcoran - The Path to Electronic Trading

A Trader and Industry Executive Who Continues to Change with the Times. John Lothian News interviewed Scott Knudsen, the founder of Cove Markets and a longtime former executive with IMC, for The Path to Electronic Trading video series, but we broke off this part of the interview into a stand-alone video. Knudsen talked about his early experiences with the crypto markets, starting in 2012 when an IMC employee talked about a quirky new product. That product was what encouraged Knudsen to launch Cove Markets. Knudsen and his IMC team in Chicago took a deep look at bitcoin back in 2017. The initiative at IMC was scrapped as other more profitable markets needed the resources at the time. However, Knudsen was encouraged to look at crypto by one of the biggest investors in the space. Despite a market that looked like a bubble, he jumped into bitcoin anyway. He and a friend from the industry considered starting an exchange and how lucrative it might be. As he talked to more people in the space, the bubble in bitcoin broke in 2017. Asking himself how he could add value to the space, Knudsen said he decided to build a tool for traders to get the best execution, much as he did at IMC when they addressed how to trade multi-listed options in an increasingly electronically traded equity options world. With a fragmented market and no Reg NMS to bring the market together, Cove Markets was the result and Knudsen tells the story of building the firm and the best execution platform. 20:04
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Scott Knudsen - The Path to Electronic Trading Led to a Best Execution Platform For Bitcoin

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Bill Brodsky: The Path To Electronic Trading - Part 1

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Bill Brodsky: The Path To Electronic Trading - Part 2

Cboe Global Markets Chairman and CEO Ed Tilly shares his story of starting in the options industry and how that led to a path towards electronic trading. Tilly sat for a Zoom interview with John Lothian News for the JLN MarketsWiki Education The Path to Electronic Trading series. 20:32
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Ed Tilly - The Path to Electronic Trading

NYSE executive Meaghan Dugan always worked in kitchens as a youth and had dreams of becoming a famous chef. She even earned a degree in culinary science. However, instead of donning a poofy cap for a career as a chef, she pursued a career in the markets at the Pacific Stock Exchange and wore a colorful jacket. 20:30
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Meaghan Dugan Cooks Up A Stellar Path To Electronic Trading

Veteran Exchange Employee Shares His Firsthand Experience of Open Outcry and Electronic Trading at CME and CBOT John Van Der Bleek got his start in the markets after working for a hospital part time with someone later hired at the Chicago Mercantile Exchange as an employment manager. He began as a price reporter at the CME, and the minute he saw the trading floor he knew it was where he wanted to be, and he gave up his aspirations for law school. After working for the CME, he tried his hand at trading there in the S&P pit with his own money. That did not work out as well as he had hoped. After a stint at a firm at the CBOT, he joined the exchange in 1992. He left the CBOT in 2007 after it was acquired by the CME Group and he decided his future was not there. He worked for two investment banks and the National Futures Association before joining ErisX. At the CME he was a price reporter in the hog pit and was recruited for the larger, more active cattle pit. Later, he was asked to come into the S&P pit after a break after the cattle closed. He was in the S&P pit as a price reporter amid the chaos of the 1987 stock market crash and when the Challenger exploded. He met all kinds of traders. Some had big educations and some had little. He was hired at the CBOT in the Office of Investigations. He was later tapped to help with the reboot of Project A. He was asked to run the overnight operation of Project A, which included building all the systems to support this new electronic trading. He had to bust the very first trade on Project A because of a badly designed spread function. He was later involved with order routing on the trading floors, including the development of TOPS, which stands for Trade Order Processing System. He worked with the Electronic Clerk terminals and helped implement the COMET (Common Order Management Entry Terminal) terminals. He helped make the entire open outcry experience more electronic, efficient and manageable. The challenge of all this new technology meant the exchange had to create a wireless network to support all this so traders and clerks could be mobile. This also allowed traders to be able to trade side by side when markets moved to that style. He helped support Project A, the a/c/e alliance, Liffe Connect and ultimately Globex. He helped move the exchange from one platform to the next, including from one country to the next as system providers. After the merger with the CBOT and CME, he helped move the traders from the CME floor to the CBOT floor. He was hired by Deutsche Bank and left the CME Group, to help with hundreds of projects. He helped consolidate the bank's trading operation at the CME to the CBOT floor. Then he helped close out the futures trading from the CME floor for DB. He helped the bank do this again when the CME acquired NYMEX. Van Der Bleek sat for an interview with John Lothian News for the video series The Path to Electronic Trading, conducted over Zoom. 27:22
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John Van Der Bleek - The Path to Electronic Trading

Kevin Darby started his career as a college kid on the CBOE trading floor and bridged the open outcry and electronic trading eras by using his knowledge of the trading floor processes and trading, his mathematical skills and programming skills. That was his path to electronic trading. 23:24
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Kevin Darby - The Path to Electronic Trading - MarketsWiki Education

Part One. Elmhurst, IL (JLN) – Joe Schroeter is a change agent and that is exactly why CQG owner Tim Mather hired him in 2000 as the markets were turning electronic and CQG needed to reinvent itself. Schroeter shares his humble beginnings in Nebraska farm country and then at the University of Colorado for law school in part one of a three part interview for our MarketsWiki Education video series, The Path to Electronic Trading. Schroeter guides the listener through the origins of CQG, which was the creation of a commodity broker with an advanced degree, in Aspen, Colorado. CQG carved out a spot in the market with “really, really solid quality data,” Schoeter said. “He (Mather) expanded then into fairly complex studies, did partnerships with companies like Tom Demark, and had the Demark indicators on his machine, which really, in a way, were early algorithms,” he said. Market connectivity was a big issue in the early days, and eventually CQG offered an API. CQG also launched a satellite for delivery of data via a dish in remote areas, Schroeter said. In the 1990s, CQG developed an internet-delivered version, he said. When Schroeter joined CQG, one of his mandates was to improve product development capability. The firm had a small workforce but would see its developer staff swell to close to 300, he said. The second mandate was to find a way into order execution. Schroeter focused on changing the company’s culture at the same time, He said to be successful, the company had to work across processes, rather than just be in silos. CQG bought a trading gateway company that acted as an engine for its electronic trading platform, but the real value came from the people CQG acquired in the deal. “What came with it were a handful of developers and they turned out to be the real value in it,” Schroeter said. CQG’s electronic trading platform went through several iterations, and different ways to enter orders were developed. Ultimately, the company decided user design was important and hired UX experts and designers from Frog Design in IDEO and Marcus Kwan from Microsoft. QUESTIONS What is your background? What was the CQG story up until that point? What were your mandates when you joined CQG? Did you buy your trading technology? What was the first version of the platform like? How did you come up with the idea of right-clicking on a product to expand a wheel of options? 00:00:00 - Introduction and Background 00:02:20 - Career Transition to CQG 00:04:49 - CQG History and Innovations 00:08:07 - Mandates and Challenges at CQG 00:10:14 - Acquisition of Trading Gateway 00:10:59 - First Version of the Platform 00:12:43 - Innovation in User Interface Design 13:26
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Joe Schroeter on Transforming CQG for the Digital Age: From Humble Beginnings to Market Leader

May 31, 2024 Part Two of The Path to Electronic Trading Interview with Former CQG President Elmhurst, IL (JLN) - Josef Schroeter, the former president of CQG, shares his insights on the company's journey and the evolution of electronic trading in the derivatives markets. Schroeter joined CQG in the early 2000s at the invitation of Tim Mather, the owner of CQG at the time. Mather had built CQG into a company known for its data quality and analytics but lacking execution capabilities. Schroeter's mandate was to transform the company and prepare it for the rapidly approaching shift to electronic trading in the derivatives markets. In part two of this interview for The Path to Electronic Trading video series from John Lothian News, Schroeter discusses the evolution of CQG's platform, from basic order tickets to multiple ways of entering orders, including off quote boards, charts, and price ladders. The company also prioritized risk management, hiring Mike Glista to develop a risk dashboard that catered to the needs of brokers and risk managers. Schroeter credited the late Geno Sullivan with helping CQG innovate its options trading offerings. As electronic trading grew, CQG's sales process became more complex, requiring the company to sell not just to traders but also to brokers and various stakeholders within firms. Pat Kenny, a key figure in CQG's sales efforts, helped the company navigate this new landscape and expand its reach. CQG also developed tools like custom algos and the auto spreader, which became a successful product for the company. Schroeter notes that the auto spreader was the first high-performance, fast trading technology deployed by CQG, elevating its credibility in the market. Regarding intellectual property law, Schroeter discusses the defensive patent strategy adopted by CQG, focusing on designing around existing patents and leveraging the company's ability to develop innovative user interfaces. He notes that while patents played a significant role in the industry for a time, the rapid pace of technology development eventually outpaced IP strategies, with traders constantly seeking new edges and innovations. QUESTIONS How did you bring electronic trading to options trading? How did you make your risk management so good? How did sales go and who did you sell it to? What was the sales process like? What tools did you offer? What role did intellectual property law play in the growth of CQG? 00:00:00 - Introduction and Electronic Trading 00:01:55 - Risk Management 00:03:47 - Sales and Distribution 00:05:17 - Sales Process 00:07:01 - Offered Tools 00:08:12 - Role of Intellectual Property Law 12:57
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Josef Schroeter Reflects on the CQG's Transformation and the Evolution of Electronic Trading

Josef Schroeter, the former president of CQG, a provider of trading software and market data, shared his insights on the evolution of electronic trading, the rise of crypto, and the potential impact of AI in part three of his interview with John Lothian News for The Path to Electronic Trading video series. Discussing the advent of algorithmic trading, Schroeter said, "When I look at trading, I see it in three shifts: trading 1.0 was the interfaces, 2.0 was the advent of algo trading, and the third is what we're seeing now." He highlighted how algo trading enabled traders to execute orders without constantly monitoring the system, driving a surge in trading volumes. "The better you became at providing algo technology, the more players you could provide for, and the more needs they had," he added. On the topic of cryptocurrency, Schroeter expressed skepticism about its underlying value but acknowledged its momentum. "It's difficult for me to understand what can drive the underlying value of it," he said. However, he predicted that major firms like CQG would offer crypto trading "in a predictable, stable way" to meet market demand. Regarding AI's impact, Schroeter emphasized its potential for boosting productivity. "The productivity boost that we got by using AI from our developers was close to double," he revealed, citing a recent project integrating ChatGPT into a product. However, he cautioned that AI's impact on trading algorithms would take longer to develop and would still be bound by market rules and regulations. Looking ahead, Schroeter anticipated increased regulation for technology firms like CQG in the coming years. "I think over the next 3 or 4 years, you're going to see a lot more regulation come directly on technology players," he stated. With his extensive experience in capital markets, Schroeter underscored the importance of managing change and adapting to evolving ecosystems. "The community is becoming an ecosystem," he said. "You can't just provide one aspect of the service anymore." QUESTIONS Did you get sued by TT? How did algo trading change CQG? Did you see crypto trading coming? How did regulation affect CQG? What did you do after CQG? How does AI fit in with a company like CQG? 00:00:10 - Introduction and Litigation with TT 00:00:26 - Innovation and Development 00:02:11 - The Impact of Algo Trading on CQG 00:04:05 - Perspective on Crypto Trading 00:06:15 - Regulation and its Effects on CQG 00:07:55 - Post-CQG Career 00:10:22 - The Role of AI in CQG 13:58
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Josef Schroeter: Former CQG President Reflects on Algo Trading, Crypto, and AI's Impact

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Ryan McNally - The Path to Electronic Trading

Dan Gramza sat for an interview with John Lothian News for the MarketsWiki Education The Path to Electronic Trading video series. Gramza tells the story of how he got started in trading with stock options in 1974. In 1980, he moved to the Chicago Board Options Exchange and traded delta neutral strategies. He realized he had not eliminated risks, but changed them. He moved to the Chicago Board of Trade on a rice membership to trade price. Then he started working for exchanges, including the SGX, teaching how to trade. He explains the difference between being a floor trader and an upstairs trader. Rama Pillai of SGX engaged with Gramza to make up a new course to teach at SGX. Gramza even met with the board of directors as part of his SGX experience. He also met with banks, brokers and exchange personnel. Electronic trading was going to change the world and he looked at the broader scope of change. He created courses on technical analysis, market profile, what he called trading in the eye of the storm, options and modified Japanese candlesticks. SGX gave Gramza a room on the trading floor and traders would come into his office to look at the markets with the traders. That helped cement some of the ideas he was teaching to the traders. Some 85% of the traders who made the transition from open outcry to electronic trading were still in the market after the transition. 14:37
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Dan Gramza - The Path to Electronic Trading

Ralph Moses started in futures with Geldermann, helping them use a new IBM mainframe. He later started developing a system called Order Express for Lind Waldock, one of the first electronic trading front ends. He used an IBM System One mini computer with 2 MB of memory. He built a risk management system that could tell if an account was at risk depending on how markets were moving. This helps Lind Waldock avoid significant risk during the stock market crash of 1987. 10:49
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Ralph Moses - The Path to Electronic Trading

Rama Pillai discussed his three decade career shaping Singapore finance in an interview earlier this year with Rob Lothian of John Lothian News. Pillai is a Singapore-based exchange executive who currently serves as senior vice president and chief commercial officer at Singapore Exchange Limited (SGX), in charge of membership and international coverage of all SGX products. From joining SIMEX in 1991 to spearheading the transition to electronic trading and establishing SGX, Pillai's career highlights the evolution of Singapore's derivatives market. In this interview, he discusses the merger that formed SGX, his international experience, and his role in founding FIA Asia. His insights explore the key milestones that positioned Singapore as a global financial hub. #Rama Pillai #Singaporefinance #SGX #derivativesmarket #electronictrading #FIAAsia 22:00
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Rama Pillai's 33-year Journey In Singapore Finance & Markets: From Breakthroughs To Success

John Walls is an executive with ADM Investor Services, but he started in the industry like many others of his generation as a trading floor messenger or runner. As a runner on the MidAmerica Commodity Exchange trading floor working for Shatkin Trading, Walls took advantage of nearly every opportunity he was presented with to learn all the different aspects of the markets and futures industry. 16:34
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John Walls – The Path To Electronic Trading

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Mike Unetich - Path to Electronic Trading - John Lothian News

For Charles Farra, there were many steps on the path to electronic trading that saw him start as a runner for Cargill Investor Services in 1981 and work his way up in the organization. He would serve the firm in Chicago, London and Tokyo during a time when new products and big markets led to incredible growth in the futures industry. 20:45
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Charles Farra – The Path To Electronic Trading Has Many Steps And Flights

Tim Brennan did not know what he wanted to do after graduating from a small liberal arts college with a degree in psychology. As with many other traders from this era, his mom had a friend who could get him a job as a runner at the Chicago Board Options Exchange. 19:29
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Tim Brennan Took The Leap To A New Frontier Of Trading

Alex Lamb pursued one opportunity after another in the burgeoning financial futures markets in Europe starting in the mid-1970s, then later with technology providers to markets around the world that migrated to electronic formats. After he hired Gary Kemp as a programmer to connect GMI and DTB and then develop a front-end screen that turned into Trading Technologies’ desktop offering, Kemp returned the favor and hired Lamb at TT. 17:41
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Alex Lamb Aways Landed Amid Opportunity In Early Years Of European Futures Trading – Part 2

Alex Lamb wanted to be a helicopter pilot in the U.K. Royal Airforce. He never had the chance, but he strategically landed opportunity after opportunity in the banking, trading and related technology businesses during his long and varied career. Lamb even helped launch the firm Trading Technologies, outlining to then contractor Gary Kemp what he wanted for a new electronic trading screen that would allow brokers to enter orders for multiple accounts and be able to track them more efficiently. That was the genesis of the screen that became Trading Technologies’ desktop offering. 20:00
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Alex Lamb Always Landed Amid Opportunity In Early Years Of European Futures Trading – Part 1

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The Path to Electronic Trading captures the pivotal moment of technological transformation in financial markets through the eyes of those who experienced it firsthand.

By collecting oral histories from market participants across generations, the project explores the emotional, professional, and technological impacts of this revolutionary change.

Interviews reveal the challenges of adapting to new technologies, the skills that became obsolete, the opportunities that emerged, and the profound ways electronic trading reshaped not just market mechanics, but the entire culture of financial exchanges.