In the mid-2000s, a midwestern software programmer turned futures trader broke the stock exchange duopoly and became a hundred-millionaire in the process.
This is the story of David Cummings 
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Cummings has a knack for computers. While in the KCBT pits, he sees an opportunity to use computers to trade futures (and eventually, stocks) for a profit. In 1999, he founds Tradebot, one of the first algorithmic trading firms.pic.twitter.com/CII59s1kya
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A few years after launch, Tradebot moves its computers from northern Kansas City to New York and New Jersey to improve its HFT strategies. The firm regularly trades up to 5% of total US stock market volume and is consistently profitable.
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While running Tradebot, Cummings learns more about the NYSE/Nasdaq duopoly and recent rule changes that could let competition break into the market. In 2005, he decides to launch Better Alternative Trading System (BATS for short), a rival stock exchange to challenge the big 2.pic.twitter.com/QqDcD9GXMn
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To break into the business, Cummings borrows a key industry tactic - selling ownership to banks to entice trading volume. After raising money from banks including Lehman Brothers & Morgan Stanley, BATS market share begins to take off:pic.twitter.com/36U0sG5gdF
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In 2012, BATS attempts to IPO on its own exchange, but a technical glitch on launch day prevents the stock from trading. They withdraw the IPO. 4 years later, BATS successfully IPOs in April 2016 at a $1.8 billion valuation.pic.twitter.com/oFC7hOzumh
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Less than 6 months after its IPO, CBOE swoops in and acquires BATS for a whopping $3.2 billion, netting Cummings close to $100 million in the sale.pic.twitter.com/DGT7hxZMzL
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Aftermath: ① Cummings returns to Tradebot and is still its CEO to this day. ② BATS currently holds ~15% equity market share, making it the 3rd largest stock exchange in the US.
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