Overview

The EccoWare acquisition by eSpeed (part of the Cantor Fitzgerald/BGC Partners group) in 2004 occurred during one of the most challenging periods in financial services history. Following the September 11th attacks, Cantor Fitzgerald faced unprecedented operational challenges, having lost 658 employees including much of their technology and trading operations leadership.

eSpeed needed to rapidly rebuild capabilities and expand beyond US Treasuries into global derivatives markets. The EccoWare acquisition provided both proven technology and an intact European team with deep derivatives expertise - filling gaps in the business during this reconstruction period.

Over nearly three years post-acquisition, James worked extensively with Howard Lutnick and other members of the senior leadership team, spending significant time both in New York and London, helping rebuild and expand electronic trading capabilities across multiple asset classes and geographies.

This experience provided deep exposure to institutional-grade trading operations under extraordinary circumstances, working directly with one of finance's most respected leaders during a defining moment for the firm.

The Acquisition Context: Post-9/11 Reconstruction

September 11th Impact on Cantor Fitzgerald

The tragedy: Cantor Fitzgerald occupied floors 101-105 of One World Trade Center. The September 11th attacks resulted in the loss of 658 employees - nearly two-thirds of their New York workforce, including many senior leaders.

Business impact:

• Massive loss of institutional knowledge and expertise

• Key technology and operations personnel gone

• Trading desk coverage decimated

• Critical client relationships disrupted

• Infrastructure and systems destroyed

Howard Lutnick's leadership: CEO Howard Lutnick's response became legendary in finance - committing to rebuild the firm while supporting victims' families, a promise kept despite many doubting it was possible.

Why EccoWare Mattered

Strategic rationale for acquisition (2004):

1. Intact European derivatives expertise: EccoWare team provided ready-made derivatives trading technology capability that didn't exist post-9/11

2. Proven technology platform: Commercial-grade algorithmic trading system already in production

3. Geographic diversification: London-based team reduced concentration risk

4. Expansion beyond Treasuries: eSpeed dominated US Treasury trading but needed derivatives capabilities

5. Speed to market: Acquiring working technology faster than rebuilding internally

The reality: Cantor needed to fill massive operational holes, and EccoWare represented a rare opportunity to acquire proven capability quickly.

Working with Howard Lutnick

Leadership During Crisis

Howard's approach post-9/11:

Working directly with Howard during this period provided extraordinary insight into leadership under extreme pressure:

• Commitment to rebuilding: Absolute determination to restore the firm and honor those lost

• Supporting families: Unprecedented dedication to victims' families (25% of profits committed for 5 years, health insurance continued)

• Operational intensity: Relentless focus on rebuilding trading capabilities and client relationships

• Strategic vision: Using crisis as catalyst for transformation toward electronic trading

• Personal involvement: Direct engagement with key initiatives rather than delegating during critical period

Direct Collaboration

My role working with Howard:

As VP Global Head of Futures Product Management, I reported into the senior product and technology organization with regular interaction with Howard on strategic initiatives:

Product strategy discussions:

• Expansion into European derivatives markets

• Multi-asset trading platform development

• Technology integration between eSpeed and acquired platforms

• Competitive positioning against established players

Client engagement:

• Present at key client meetings with major institutions

• Product demonstrations for strategic accounts

• Understanding client requirements for platform development

• Relationship building with exchanges and clearinghouses

New York / London coordination:

• Extensive travel between offices (often weekly or bi-weekly)

• Building operational bridges between US and European teams

• Ensuring product development aligned with both market requirements

• Managing time zone complexities for global rollout

The Intensity

The pace post-9/11:

The work environment was unlike anything before or since:

• Mission-driven: Everyone understood we were rebuilding something important

• High expectations: Howard demanded excellence with no excuses

• Rapid decision-making: Crisis environment enabled faster progress than normal corporate pace

• Long hours: Standard practice given what was at stake

• Global coordination: Constant NYC/London back-and-forth to maintain momentum

Personal impact: Working in this environment during this period was simultaneously exhausting and energizing. The sense of purpose - helping rebuild a firm that had suffered so much - provided motivation beyond normal commercial considerations.

Career Progression & Responsibilities

VP Global Head of Futures Product Management (2004-2007)

Scope of responsibility:

• Global product strategy for futures trading across all asset classes

• P&L co-ownership for two product lines with multi-asset responsibility:

  • Repo (repurchase agreements)

  • FX Options

  • Equity Options

  • Futures (all types)

  • CFDs (contracts for difference)

  • Fixed Income

• Client relationship management with major institutions

• Exchange partnerships across Europe, Asia, and US

• Product development prioritization and roadmap

• Team leadership across multiple geographies

Lead Architect - BGC Pro Platform

BGC Pro development:

Led architecture for BGC's professional trading platform:

Technical scope:

• C++ high-frequency trading infrastructure

• Multi-exchange connectivity across global venues

• Real-time market data processing

• Order management and execution

• Risk management integration

Deployment:

• Global rollout across BGC offices

• Integration with existing voice broking operations

• Support for electronic/hybrid trading models

• Performance optimization for institutional requirements

Innovation: Building on EccoWare foundations, BGC Pro represented next generation of institutional trading infrastructure with improved performance and broader asset class coverage.

Multi-Asset Expertise Development

Asset Class Expansion

The eSpeed/BGC role required building expertise across far more asset classes than EccoWare's futures focus:

Repo Markets:

• Repurchase agreement trading mechanics

• Collateral management and haircuts

• Tri-party repo infrastructure

• General collateral vs. special trading

FX Options:

• Vanilla and exotic options pricing

• Volatility surface management

• Greeks calculation and risk management

• Settlement and delivery mechanics

Equity Derivatives:

• Index options and futures

• Single stock derivatives

• Dividend trading

• Corporate actions handling

Fixed Income:

• Government bonds across jurisdictions

• Credit derivatives

• Interest rate products

• Yield curve trading

CFDs (Contracts for Difference):

• Equity CFD market making

• Funding and carry considerations

• Regulatory variations by jurisdiction

• Risk management for leveraged products

Commodities:

• Energy (building on Trayport expertise later)

• Metals (precious and base)

• Agricultural products

• Freight derivatives

The learning curve: Moving from derivatives specialist to multi-asset generalist required rapid learning across very different products with distinct characteristics, regulations, and market structures.

Global Operations: NYC/London Intensity

The Transatlantic Routine

Travel pattern:

During peak periods (2003-2005), the travel intensity was extreme:

• Frequency: Often weekly or bi-weekly NYC trips from London

• Duration: Typically 3-5 days in New York, return to London for 3-4 days, repeat

• Schedule: Red-eye flights to maximize time in office

• Coordination: Meetings scheduled to leverage presence in each location

• Time zones: Effectively working 12+ hour days covering both London and NYC trading hours

Why this mattered:

Post-9/11 rebuild, face-to-face interaction was critical:

• Rebuilding trust and relationships after tragedy

• Ensuring London team integrated with NYC operations

• Direct client engagement required personal presence

• Howard's leadership style emphasized personal connection

• Technology discussions more effective in person than remotely

Building the Bridge

London office role:

The London operation became increasingly strategic:

1. European derivatives expertise: Subject matter authority for expanding into European markets

2. Exchange relationships: Building partnerships with LIFFE, Eurex, and other European venues

3. Development resources: Significant engineering talent based in London

4. Client coverage: European institutional clients requiring local presence

5. Risk diversification: Geographic distribution of critical capabilities

Integration challenges:

Making two offices function as one required:

• Overlapping hours to enable real-time collaboration

• Clear ownership of responsibilities to avoid duplication

• Shared systems and infrastructure

• Common product roadmap

• United client messaging

Success factors:

• Regular face-to-face time building relationships

• Clear communication channels

• Shared goals and incentives

• Senior leadership support for integration

• Patience with cultural differences (US vs. European work styles)

Technical Innovation & Patents

Patent Portfolio Development

Several patents filed during the eSpeed/BGC period built on EccoWare foundations:

System and Method for Determining Availability of a Tradable Instrument

• Patent: US 20070016506 (issued January 18, 2007)

• Innovation: Methodology for calculating instrument availability across related instruments

• Application: Exchange matching engines and risk systems

• Origin: Solving actual problems encountered in multi-asset trading

Systems and Methods for Providing Dynamic Price Axes in Trading User Interfaces

• Patent: US 20090043664 (filed November 30, 2006)

• Innovation: Dynamic price display where bid/ask locations shift as market moves

• Application: Enhanced trader experience in professional platforms

• Impact: Improved visual representation of market flow

Trading System (Yield Spreader)

• Patent: US 20090012893 (issued January 1, 2009)

• Innovation: Automated yield-based derivatives trading

• Technical contribution: Bridging fixed income yield concepts to other asset classes

• Commercial application: Deployed in institutional trading platforms

C++ High-Frequency Architecture

Continued evolution of low-latency systems:

Building on EccoWare's C++ foundations:

• Microsecond-level optimization: Constant performance improvements

• Memory efficiency: Optimized data structures for market data processing

• Network stack optimization: Minimizing latency from exchange to application

• Algorithm efficiency: Smart order routing and execution strategies

• Risk management speed: Real-time portfolio calculations

Global deployment considerations:

Unlike EccoWare's European focus, eSpeed/BGC required:

• Multi-region deployment (US, Europe, Asia)

• Cross-region latency management

• Local exchange connectivity in each region

• Time zone coordination for 24-hour markets

• Consistent performance across geographies

Client Relationships & Market Development

Major Institutional Clients

Direct engagement with:

• Investment banks: Goldman Sachs, JP Morgan, Deutsche Bank, and others using platform for client execution

• Hedge funds: Systematic and discretionary funds requiring algorithmic execution

• Proprietary trading firms: HFT shops needing low-latency infrastructure

• Asset managers: Buy-side institutions requiring best execution across multiple venues

Client engagement approach:

• Technical demonstrations of platform capabilities

• Custom development for strategic accounts

• Regular feedback sessions on product roadmap

• Problem-solving for complex execution requirements

• Building long-term relationships beyond transactional sales

Exchange Partnerships

Building connectivity and relationships with:

Europe:

• LIFFE (London International Financial Futures Exchange)

• Eurex (German/Swiss derivatives exchange)

• MATIF (French derivatives exchange)

• Various equity and commodity exchanges

United States:

• CME (Chicago Mercantile Exchange)

• CBOT (Chicago Board of Trade)

• NYMEX (New York Mercantile Exchange)

• Multiple equity options exchanges

Asia:

• SGX (Singapore Exchange)

• HKEX (Hong Kong Exchanges)

• Various Japanese and Korean venues

Partnership requirements:

• Technical integration and certification

• Regulatory approvals

• Market data licensing

• Clearing member relationships

• Co-marketing and business development

Strategic Lessons: Building in Crisis

What Crisis Teaches About Organizations

Operating during post-9/11 reconstruction provided unique insights:

1. Mission matters: People work differently when building something meaningful - the sense that we were helping rebuild Cantor drove extraordinary effort

2. Leadership sets tone: Howard's visible commitment and personal involvement cascaded through organization - when the CEO cares deeply, everyone does

3. Speed vs. perfection: Crisis enables faster decision-making - "good enough now" beats "perfect later" when circumstances demand action

4. Relationships deepen: The shared experience of working through difficult circumstances created bonds beyond normal professional relationships

5. Operational resilience: Geographic and operational diversification isn't theoretical - it's existential risk management

Technical Lessons

Building global trading infrastructure taught:

1. Latency is relative: NYC-London travel weekly puts software latency in perspective - microseconds matter for HFT, but human coordination operates at completely different timescale

2. Multi-asset complexity: Each asset class has unique quirks - building universal infrastructure requires accommodating huge variety while maintaining performance

3. Regulatory navigation: Different jurisdictions have different rules - compliance isn't add-on, it's core architecture consideration

4. Integration challenges: Merging acquired technology with existing systems harder than building from scratch - legacy constraints limit architectural options

5. Client requirements vary: Investment banks want different things than hedge funds - platform must serve multiple constituencies

Why This Experience Matters for Handleport

Institutional Credibility

Working at Cantor/BGC/eSpeed provides:

• Brand recognition: Cantor Fitzgerald name carries weight with institutional clients

• Crisis-tested: Proven ability to deliver under extraordinary pressure

• Scale experience: Built systems serving major global institutions

• Multi-asset expertise: Not narrow specialist, but broad understanding across products

• Senior relationships: Network built during this period remains valuable 20+ years later

Technical Foundation

The technical skills developed:

• High-performance systems: C++ optimization and low-latency architecture

• Multi-asset trading: Understanding of diverse product types and their requirements

• Global infrastructure: Building and operating across multiple regions

• Risk management: Portfolio-level thinking across complex books

• Exchange connectivity: Integration with multiple venues and clearing houses

These capabilities directly enable:

• Current Pascal Protocol development (on-chain clearing)

• Jetstream platform architecture (derivatives trading infrastructure)

• Advisory work with exchanges and trading venues

• Technical due diligence for investors

• System architecture consulting

Leadership Under Pressure

Working with Howard taught:

• Decisiveness matters: In crisis, analysis paralysis is fatal - make decisions with available information

• Personal involvement: Leaders who understand details make better strategic decisions

• Supporting people: Business is ultimately about people - taking care of team enables peak performance

• Long-term thinking: Despite short-term pressure, maintain strategic vision

• Resilience: Organizations can recover from almost anything with right leadership and commitment

Personal Reflection: The Honor of Rebuilding

Working at Cantor/eSpeed/BGC during the post-9/11 period was unlike any other professional experience. The combination of technical challenges, global scale, and profound human dimension created something extraordinary.

The privilege:

Being part of the rebuilding effort - helping restore capabilities and rebuild a firm that suffered so much - provided purpose beyond typical commercial objectives. Howard's commitment to victims' families and determination to rebuild set a standard for leadership that I've tried to honor in subsequent work.

The intensity:

The weekly NYC/London travel, the long hours, the constant pressure - all worth it given what we were trying to accomplish. That pace isn't sustainable indefinitely, but during the critical rebuilding period, everyone understood what was at stake.

The gratitude:

Howard gave the EccoWare team an opportunity to contribute to something important during a critical moment. The experience, the relationships, and the lessons learned have informed every subsequent venture.

The foundation:

Everything that followed - Trayport, London Derivatives Exchange, crypto ventures, Pascal Protocol - builds on technical and leadership foundations established during this period. The ability to work through complex challenges, coordinate globally, and deliver under pressure all trace back to these years.

Transition to Next Phase

Departure (August 2007):

Left eSpeed/BGC to join Trayport as Head of Business Unit, Trader Systems. The Cantor experience provided:

• Proven track record at major institution

• Multi-asset expertise across all derivative types

• Global operational experience across regions

• Senior leadership skills managing complex organizations

• Client relationship capabilities with major institutions

• Technical credibility in trading systems architecture

The progression:

• EccoWare: Founding team, building first algo HFT platform

• eSpeed/BGC: Scaling globally across multiple asset classes

• Trayport: Leading commercial operations at market leader

• London DX: Co-founding new exchange

• Crypto ventures: Applying lessons to blockchain infrastructure

Each step built on previous experience, creating cumulative expertise that enables Handleport's current consulting and IP development work.