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Thesys Technologies Selected To Develop Stock Auditing and Tracking System for SEC

Tuesday, January 24, 2017

Transformational Project to Build Consolidated Audit Trail Supported by Partners IBM and Latham & Watkins and Rosenblatt Securities

NEW YORK, Jan. 24, 2017 /PRNewswire/ -- Thesys Technologies LLC, the technology arm of Tradeworx, Inc, announced today that it has been selected to build a powerful new system to manage the tracking and auditing of all stocks and transactions by the Securities and Exchange Commission. The consortium of Self-Regulatory Organizations (SRO), the organizations responsible for developing and implementing the Consolidated Audit Trail (CAT), selected Thesys to serve as the prime contractor to build this new regulatory system designed to replace outdated reporting systems and what will be the world's largest data repository for securities transactions tracking approximately 58 billion records of orders, executions, and quote life-cycles for equities and options markets on a daily basis.

"The Thesys CAT Team is excited to have this opportunity to bring our technology and expertise to bear on the Consolidated Audit Trail -- one of the most important market initiatives of our time," said Mike Beller, Managing Partner of Thesys Technologies LLC. "We've worked hard over the past 4 years to design a CAT system that we believe will be useful to regulators while easing the reporting burden on the industry," added Anshul Anand, Vice President at Thesys Technologies LLC, who led Thesys' successful CAT bid.

Thesys will serve as the Consolidated Audit Trail (CAT) Plan Processor in cooperation with its Thesys CAT partners: IBM, Rosenblatt Securities, and Latham & Watkins, with Latham serving as legal counsel to Thesys CAT. Faegre Baker Daniels represented Thesys as legal counsel in developing its bid.

IBM will provide hosting on the IBM Cloud, cognitive computing and security services, technology infrastructure, program management, consulting and other services as well as call center and help desk outsourcing. "IBM is honored to play an important role in the transformation of an important part of the financial markets infrastructure in North America," said Bridget Van Kralingen, Senior Vice President, IBM Industry Platforms. "Hosted on the IBM Cloud, and underpinned by IBM security and consulting expertise, the new system will help enhance regulatory oversight, while meeting critical market and consumer needs."

"Thesys is a true innovator in FinTech," said Vivian Maese, partner at Latham & Watkins in New York and leader of the firm's global FinTech Practice. "Thesys' cutting edge technology and the team's deep knowledge of market structure make them an exceptional choice to implement the Consolidated Audit Trail regulation. The implementation of Thesys' technology and data analytics capability will provide our regulators with new, faster and deeper ways to understand and analyze activity in our markets. We are very proud to work side by side with the Thesys CAT team on this very important regulatory initiative in the financial services industry."

Vikas Shah, Managing Director of Fintech Investment Banking at Rosenblatt, commented, "The SROs decision rewards innovation and a company that demonstrates it can deliver complex technology projects by building MIDAS for the SEC." Joe Gawronski, President and COO of Rosenblatt added: "We are excited to have assisted Thesys with its winning bid and what this project means for the entire industry and the investing public. After a long process, the SROs chose the firm that from the beginning had appropriately prioritized the market's desires for cost efficiency and strong cybersecurity."

About Thesys Technology LLC: Thesys Technologies, LLC is a high performance trading technology provider, focused on delivering low latency and market structure technology to financial market participants. Founded in 2009, Thesys Technologies operates out of offices in its New York City headquarters and in Charleston, SC. Thesys' proprietary technology includes pre- and post-trade surveillance tools, low latency trading platforms, matching engines, and big data analytical tools such as those provided to the U.S. Securities and Exchange Commission as the MIDAS system. For more information on Thesys Technologies, LLC, please visit the website at www.thesystech.com.

About IBM: For more information about IBM Banking, visit ibm.com/banking.

About Latham & Watkins: Latham & Watkins' global FinTech Practice advises clients from New York, London, Frankfurt, Hong Kong, Singapore and Silicon Valley on trailblazing corporate transactions and complex regulatory matters. Latham lawyers represent emerging companies, investors, banks and other financial services players on their proprietary FinTech transactions. Latham has a strong track record providing strategic business and regulatory advice to technology and other growth companies, as well as venture capital firms and investment banks that finance the entrepreneurial ecosystem. For more information on Latham & Watkins, please visit the website at www.lw.com.

About Rosenblatt Securities: Rosenblatt Securities is an agency-only institutional brokerage, research and FinTech-focused investment banking firm founded in 1979 and headquartered in New York. Rosenblatt is the largest broker on the New York Stock Exchange floor. It also offers cutting-edge "upstairs" trading services, including both program and single-stock execution. The firm provides industry-leading execution analytics, market-structure analysis, consulting and investment-banking services to a wide variety of clients globally, including not only institutional investors, but also exchanges, government entities, fintech companies, banks, brokers and proprietary-trading firms. Its growing research offering includes in house coverage of financial services and technology, as well as partnerships with leading content providers in emerging, frontier and developed markets, as well as data and analytics providers. For more information, please go to www.rblt.com.

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