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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: JerryPutnam who wrote (2340)	11/26/1998 5:06:00 PM
From: scanshift	Read Replies (1) \| Respond to of 7382

Jerry Putnam / Townsend / Reuters / Wolfgang Flottl Jerry Putnam is very polished and smooth, but when you are a con artist you learn those skills. As far as the fees, there should be a 1/10 cent of a share "credit" added to Terra Nova's rate page when you add liquidity to the Island ECN. This is the same that is on the Cyberbroker rate page. Anyway, Putnam has chosen to ignore a number of important points in his personal history. I invented SCANSHIFT and I identified Townsend Analytics to program it. I introduced Putnam to Townsend and suggested that we use SCANSHIFT as a tool to attract customers to our new broker dealer. I introduced my friend from the Chicago Mercantile Exchange, Lewis Borsellino, to Townsend and Putnam, and he was an early SCANSHIFT user. There is a Dow Jones wire story that talks about Putnam, Borsellino and me back in the spring of 1995. I came up with the idea for the Chicago Trading and Arbitrage SOES room back in the spring of 1995 based on a visit to a competitors trading room, and actively pushed the idea. Townsend is an EQUAL partner with Putnam in Archipelago. Townsend was an equal partner with Borsellino and Putnam in the Chicago Trading and Arbitrage SOES room. Borsellino was screwed out of his share and had to settle only after he filed a lawsuit; I have a complaint on record with the SEC regarding what is a fradulent application for the Archipelago ECN as far as to what my participation should have been. Many individuals of SI have suggested that I take stronger action, and that is an option that I have not exercised at this time. Thank you for all your private messages of support. Townsend was involved with a man by the name of Marc Chaikin, while he owned a private software company named Bomar (spelling may be slightly off on Bomar). His software ran on the Townsend Server. Chaikin's company was then sold to Reuters Instinet division and became integrated into the Instinet "Analytics" part of their software. When some of the world's largest hedge funds told me that they loved SCANSHIFT but that the Townsend platform it ran on was not competitive with the Reuters platform, I had a long conversation with Townsend about some of the flaws these hedge fund managers had with the Townsend platform. When I brought up the features of the Reuters platform that they liked, the Townsends were not happy. They went, for lack of a better word, nuts, when I said that a couple large hedge funds told me to remove their Townsend machines, and instead give them an add on module for their Reuters terminal that would have SCANSHIFT. Townsend said that Reuters had tried to buy them out in the early 1990's for only three million dollars and that they were very insulted by that bid. Townsend stated that Reuters was their competition in the quote screen business, and even though in 1995 they only had slightly over one thousand Real Tick platforms in the field, they wanted to expand and keep SCANSHIFT exclusive to them. They stated that the Reuters platform was a piece of junk, which was a bizarre comment because Reuters had over 300,000 screen in the world at that time. They said that they did a lot of outside work, and that unfortunately Instinet was one of the customers they did work for, based on their relationship with Marc Chaikin, who was now the Director of Research at Instinet now that he had sold his company to them. It was at that time that I suggested, if you want to compete with Reuters, why not also compete with them in the electronic stock arena? They had all the inside knowledge as to how Instinet works based on their consulting with Instinet. It was only a short time thereafter that the nightmare of being thrown out of my own office and then having some corrupt cops throw me around and set back the rehab on my surgically repaired shattered hip and pelvis started. Please read my earlier posts to get the details on that. Prudential Securities did not drop the case against Putnam to the best of my knowledge. I had a conversation with Prudential's attorney after Putnam, Townsend and Borsellino played their games with me. The case was settled, and a confidentiality agreement between Putnam and Prudential was then drawn up. As far as the trade being authorized, the customer, Wolfgang Flottl put on twenty thousand Nikkei and did not have the money in his account to come anywhere close to covering the margin required for the trade. It is the duty of an institutional broker to have some common sense; you do not put on a giant trade with no where even close the money in the account to cover the trade. It is my recollection that over 100 million dollars showed up a few days later, and then Prudential moved the whole trade to Refco and fired Putnam. To learn more about Wolfgang Flottl go to the archives of the magazine, Business Week, and look up the story for May 9, 1994 with the heading of "Wolfgang Flottl's Network of Shadows"