Tradebot

Tradebot, formally Tradebot Systems, Inc., is a privately held United States high-frequency trading firm headquartered in Kansas City, Missouri. The company was founded in 1999 by Dave Cummings and built its business around automated, technology-driven trading in equities. Rather than operating as a conventional investment manager serving retail or institutional clients, Tradebot acts in electronic markets through proprietary trading systems that seek to provide liquidity and capture small price discrepancies at very short holding periods. The firm became associated with the development of modern high-frequency trading in the United States. According to statements attributed to Cummings, Tradebot typically held stocks for approximately 11 seconds in 2008. The company was also reported to have represented about 5% of total United States stock-market trading volume at that time, although the reference material does not provide a current volume figure. Its reported trading results attracted attention because the firm maintained a long run of profitable trading days. Contemporary reporting described a nearly fourteen-year streak of daily profitability that ended in 2017; the earlier streak had been described as continuing for four years as of 2008. Tradebot's corporate history is closely connected with other electronic-market ventures founded or associated with Cummings. In 2005, Cummings left Tradebot to establish the Better Alternative Trading System, an electronic trading venue that later became the BATS Exchange. He returned to Tradebot in 2007 after leaving BATS. The Tradebot organization has also been described as affiliated with Tradebot Ventures, Tradebot Properties, Tatora, and Auxby, although the available reference does not specify the precise ownership or governance relationships among those entities. The company's primary geographic focus has been the United States. Tradebot previously pursued an international expansion into Canadian equities, but that effort was shut down in 2016. The available material describes the firm as exclusively trading United States stocks after the Canadian operation closed. Its business model therefore remains concentrated in automated trading and liquidity provision within American equity markets. Tradebot received public scrutiny in 2014 during a New York attorney general investigation concerning Barclays's dark pool. Authorities alleged that Barclays had concealed the participation of major trading firms, including Tradebot, in the venue. Tradebot itself was not accused of wrongdoing in that matter. The episode nevertheless illustrated the regulatory and public attention directed at high-frequency firms and private trading venues. Tradebot's identity is consequently tied less to consumer-facing products than to proprietary market infrastructure, algorithmic execution, and the broader development of electronic equity trading.

Tradebot Systems, Inc. was founded in 1999 in Kansas City, Missouri, by Dave Cummings. From its beginning, the firm concentrated on proprietary electronic trading rather than traditional investment management. Its systems traded stocks automatically and at very short horizons, placing the company within the emerging high-frequency trading sector. Tradebot developed an early relationship with Getco, another prominent electronic trading firm. The relationship placed Tradebot within a network of market participants helping to shape the structure of automated United States equity markets. The firm's reported activity was substantial: reference material states that it regularly accounted for approximately 5% of total United States stock-market trading volume. Cummings said that, in 2008, Tradebot typically held stocks for about 11 seconds, illustrating the highly short-term nature of its strategy. In 2005, Cummings left Tradebot to launch the Better Alternative Trading System, commonly known as BATS. That venture became an important electronic trading venue and was later known as the BATS Exchange. Cummings returned to Tradebot in 2007 after leaving BATS. The two businesses' histories therefore became linked through their founder's movement between proprietary trading and exchange technology. Tradebot was also associated with Tradebot Ventures, Tradebot Properties, Tatora, and Auxby. The available source identifies these organizations as affiliates but does not establish a detailed corporate chart or clarify their respective operating roles. The firm attracted regulatory attention in 2014 during the New York attorney general's action involving Barclays's dark pool. Authorities alleged that Barclays had failed to disclose the role of major participants, including Tradebot, in the venue. Tradebot was named in connection with the venue's participation but was not accused of misconduct. Tradebot's reported record of profitability became another notable part of its public history. The Wall Street Journal described a nearly fourteen-year period during which the firm made money on every trading day. That run ended in 2017. Tradebot also attempted to expand beyond the United States, entering Canadian stock trading, but closed that operation in 2016. Following the withdrawal, the company was described as exclusively trading United States stocks. The available public material does not provide further detail on its current management, ownership, trading technology, revenues, or present market share.

• 2017

  Daily-profitability streak ends

  [1]Tradeboten.wikipedia.org

  The firm's reported nearly fourteen-year streak of profitable trading days ended.

• 2016

  Canadian operation closes

  [1]Tradeboten.wikipedia.org

  Tradebot ended its Canadian stock-trading initiative and returned to an exclusively United States equity focus.

• 2014

  Tradebot appears in Barclays dark-pool controversy

  [1]Tradeboten.wikipedia.org

  New York authorities identified Tradebot as a major participant in Barclays's dark pool while alleging that Barclays had concealed that participation.

• 2007

  Cummings returns to Tradebot

  [1]Tradeboten.wikipedia.org

  After leaving BATS, Cummings returned to Tradebot.

• 2005

  Cummings establishes the Better Alternative Trading System

  [1]Tradeboten.wikipedia.org

  Cummings left Tradebot to create the Better Alternative Trading System, which later became the BATS Exchange.

• 1999

  Tradebot is founded

  [1]Tradeboten.wikipedia.org

  Dave Cummings founded Tradebot Systems in Kansas City, Missouri, as a proprietary electronic equity trading firm.

A private, technology-led proprietary trading firm specializing in high-frequency electronic equity trading and market liquidity provision.

• Proprietary trading · 1999

  United States equity trading

  Tradebot's core activity is proprietary trading in United States stocks. The firm uses automated systems to submit and manage orders for its own account, with strategies designed for electronic markets and very short holding periods. It does not present a conventional consumer product portfolio; its principal offering is its internally developed trading capability and participation as a liquidity provider.

• Proprietary trading

  Canadian equity trading operation

  Tradebot operated an international initiative focused on Canadian stocks. The effort represented an expansion beyond the firm's United States base, but it was discontinued in 2016. Following its closure, the company was described as concentrating exclusively on United States equities.

• 2014

  Barclays dark-pool controversy

  During proceedings by New York Attorney General Eric Schneiderman, Barclays was accused of hiding that Tradebot was one of the largest participants in its dark pool. Tradebot was involved as a named participant but was not accused of wrongdoing.

  Source

Read more

• 2016

  Withdrawal from Canadian equitiesStrategy

  Background

  Tradebot had pursued an international trading effort in Canadian stocks.

  Action taken

  The firm shut down its Canadian operation.

  Aftermath

  Tradebot was subsequently described as exclusively trading United States stocks.

  Source

• 2005

  Creation of the Better Alternative Trading SystemStrategy

  Background

  Dave Cummings left Tradebot to pursue a separate electronic-market venture.

  Action taken

  He founded the Better Alternative Trading System, which later became the BATS Exchange.

  Aftermath

  Cummings returned to Tradebot in 2007, while the separate venue developed into a significant electronic exchange.

  Source

• 2017

  Tradebot's long daily-profitability streak ends[1]Tradeboten.wikipedia.org

  Other

  A nearly fourteen-year streak in which Tradebot reportedly recorded a profit on every trading day came to an end in 2017.

• 2016

  Tradebot closes its Canadian stock-trading operation[1]Tradeboten.wikipedia.org

  Other

  Tradebot shuttered its international effort in Canadian stocks and subsequently focused exclusively on United States equities.

• 2007

  Dave Cummings returns to Tradebot after leaving BATS[1]Tradeboten.wikipedia.org

  Leadership change

  After leaving BATS, Cummings returned to Tradebot, reconnecting the firm with the development of electronic-market infrastructure associated with his earlier venture.

• 2005

  Tradebot founder leaves the firm to establish the Better Alternative Trading System[1]Tradeboten.wikipedia.org

  Other

  Dave Cummings left Tradebot to establish the Better Alternative Trading System, an electronic trading venue that later became the BATS Exchange.

1. 1Tradeboten.wikipedia.org