The 2016 Tech 50: Daniel Coleman

< The 2016 Tech 50

10
Daniel Coleman
Chief Executive Officer
KCG Holdings
Last year: 12

KCG Holdings chief executive Daniel Coleman is constantly on the lookout for ways to leverage technology. Since July 2013, when Jersey City, New Jersey–based 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 company’s 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 KCG’s core market-making system. “We’ve 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 KCG’s 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 year’s 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.

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The 2016 Tech 50

1. Catherine Bessant Bank of America Corp. 2. Jeffrey Sprecher Intercontinental Exchange 3. Lance Uggla Markit 4. Phupinder Gill CME Group 5. Shawn Edwards and Vlad Kliatchko Bloomberg 6. R. Martin Chavez Goldman Sachs Group

7. Robert Goldstein BlackRock 8. Adena Friedman Nasdaq 9. Deborah Hopkins Citi Ventures 10. Daniel Coleman KCG Holdings 11. Stephen Neff Fidelity Investments 12. David Craig Thomson Reuters

13. Michael Spencer ICAP 14. Michael Bodson Depository Trust & Clearing Corp. 15. Charles Li Hong Kong Exchanges and Clearing 16. Chris Concannon BATS Global Markets 17. Blythe Masters Digital Asset Holdings 18. David Rutter R3CEV

19. Neil Katz D.E. Shaw & Co. 20. Lee Olesky Tradeweb Markets 21. Richard McVey MarketAxess Holdings 22. Seth Merrin Liquidnet Holdings 23. Robert Alexander Capital One Financial Corp. 24. Brad Katsuyama IEX Group

25. Antoine Shagoury State Street Corp. 26. David Gledhill DBS Bank 27. Lou Eccleston TMX Group 28. Andreas Preuss Deutsche BÖrse 29. Dan Schulman PayPal Holdings 30. Scott Dillon Wells Fargo & Co.

31. Mike Chinn S&P Global Market Intelligence 32. Craig Donohue Options Clearing Corp. 33. Gary Norcross Fidelity National Information Services 34. Steven O’Hanlon Numerix 35. Sebastián Ceria Axioma 36. Michael Cooper BT Radianz

37. Tyler Kim MaplesFS 38. Neal Pawar AQR Capital Management 39. David Harding Winton Capital Management 40. Chris Corrado London Stock Exchange Group 41. Brian Conlon First Derivatives 42. Jim Minnick eVestment

43. Stephane Dubois Xignite 44. Mazy Dar OpenFin 45. Yasuki Okai NRI Holdings America 46. Kim Fournais Saxo Bank 47. Jock Percy Perseus 48. Robert Schifellite Broadridge Financial Solutions

49. Brian Sentance Xenomorph Software 50. Pieter van der Does Adyen