Sayonara Thesys Technologies. Hello Finra.
The startup company that shocked the stock market by winning the bidding war to build the equity markets much anticipated and mandated securities trade tracking system has been or is expected to be fired, according to a report in the Wall Street Journal. Finra is reported now in charge of building the Consolidated Audit Trail system.
Traders Magazine confirmed with a spokesman for Thesys Technologies that Thesys confirmed the decision to end the contract. A company spokesman said the parties have irreconcilable differences.
“We are working with CAT NMS on a transition,” the spokeperson told Traders Magazine in an email.
Finra did not immediately respond to emails from Traders Magazine seeking comment at press time.
In an article, the Journal wrote that the stock exchanges intend to fire the contractor they hired to build a data warehouse for all U.S. stock-market activity, the latest sign of trouble for a project designed to detect trading fraud and causes behind wild swings in prices.
Kristen Kaus, spokesperson for the NYSE, declined to publicly comment.
A spokesman for Nasdaq declined to publicly comment on the matter.
The Journal cites people familiar with the matter as saying the exchanges have lost confidence in Thesys Technologies.
The committee charged with creating the CAT constitutes roughly 20 members, including the exchanges.
Larry Tabb, founder of Tabb Group, commented on Twitter, “Wow this is big.”
Also on Twitter, the Security Traders Association tweeted this dismissal was a “big development”.