Good thing Datek NOW has "Deep Pockets??
NYSE in Talks With Three ECNs About Nasdaq Shares,
People Say
Bloomberg News
June 1, 1999, 3:25 p.m. PT
NYSE in Talks With Three ECNs About Nasdaq Shares, People Say
New York, June 1 (Bloomberg) -- The New York Stock Exchange
is talking with three private trading systems about creating its
own network for trading the most active Nasdaq Stock Market
shares, people familiar with the situation said.
Richard Grasso, the NYSE's chairman and chief executive, is
expected to discuss the proposed system with exchange directors
on Thursday, the exchange's last regularly scheduled meeting
before September, these people said.
Those briefed on the Big Board's plans, dubbed 'Nysenet,'
said the exchange is talking with Brass Utility LLC -- nicknamed
Brut, Strike Technologies LLC and the Redibook system, about
setting up a new network in which the NYSE would be a partner.
All three companies are owned in part by the NYSE's largest
members.
''This is interesting and intriguing to me,'' said Arthur
Pacheco, president and chief executive of Strike Technologies
LLC, who added an NYSE-sponsored ECN could make for more orderly
trading of Nasdaq shares.
An NYSE-sponsored trading system would lower trading costs
and provide institutional investors greater access to the Nasdaq
market, Grasso said in an interview in April.
Such a system would also allow the NYSE to gain business at
the expense of rival Nasdaq. Currently, Nasdaq market makers can
trade NYSE stocks but the Big Board doesn't trade Nasdaq issues.
An NYSE spokesman declined to comment, as did
representatives of Spear Leeds and Brass Utility. A spokesman for
Reuters Group Plc's Instinet Corp. said the largest private
trading network remains in discussions with the Nasdaq and the
NYSE about alliances but declined to comment further.
Strike's investors include Citigroup's Salomon Smith Barney
and Bear Stearns Cos., while Goldman Sachs Group and Merrill
Lynch & Co. are among Brut's owners. Redi is operated by Spear
Leeds & Kellogg, the Big Board's largest specialist firm.
PS: Wonder if all the "pressure" for thr NYSE to offer Nasdaq stocks and extended hours is in direct response to tne Datek "threat!" - I doubt the NYSE is worried about NASD.
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