Bloomberg News

Getco Promotes Coleman to CEO After 2010 Shift From UBS

February 27, 2012

Getco LLC, the automated trading firm that’s the second-largest New York Stock Exchange market maker by number of securities managed, said it promoted Daniel Coleman to chief executive officer a year and a half after he joined the firm from UBS AG. (UBSN)

Coleman, previously global head of equities and client services at the Chicago-based firm, will assume the role immediately, Getco said in a statement. Stephen Schuler and Dan Tierney, who founded the company in 1999, will remain on Getco’s board, and Schuler will assume the newly created role of executive director. Before joining Getco, Coleman was global head of equities at Zurich-based UBS.

“In 2010, we were fortunate enough to bring Daniel Coleman to Getco,” Schuler said in the statement today. “We had a sense that he might be the right person to lead us into the next phase of our evolution, and we are pleased to see our instincts borne out.”

His appointment comes as the U.S. Securities and Exchange Commission said it’s examining equity trading practices that gained dominance in the past decade amid a shift to automation. Regulators are evaluating U.S. markets after rules since the 1990s boosted competition and spread stock trading across 13 exchanges and dozens of private, broker-run venues.

While the shift cut investors’ costs, it made trading more complex, and scrutiny increased after a May 2010 rout erased $862 billion from equities in less than 20 minutes. Several practices highlighted by Daniel Hawke, head of the SEC enforcement division’s market-abuse unit, at an event last week are used by firms engaged in high-speed trading.

The SEC is looking into techniques such as co-location, in which exchanges let traders place computers close to the market’s systems to shave time off executions, the rebates that venues pay to spur transactions, direct market access where brokers let investors send orders to venues themselves, and whether the types of orders exchanges offer are being misused.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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