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Non-Tech : Knight/Trimark Group, Inc.
KCG 20.000.0%Aug 17 5:00 PM EST

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To: Joseph Silent who wrote (3259)8/9/1999 9:52:00 AM
From: LLCoolG  Read Replies (1) of 10027
 
It's already posted numerous times. If they can garner enough market share to make their trades instantaeneous--great. But they will have to make a spread somewhere to generate the revenue required to cover expenses and make a profit. I don't see how they can do this at all, just like I find it hard to believe that e-commerce companies like Amazon will ever, ever make any margin.

Plus, do you really think that the companies like Goldman and Morgan will standy idly by and let ECNs, with this no profit business model take away business from traditional market shares? I would think you would see massive consolidation in the ECNs, catalyzed by the big Houses, and ECN use strictly confined to very liquid, large NASDAQ stocks. In this way, any regulators can be satisfied that "most efficient" trading is provided to customers, while at the same time providing the liquidity necessary to protect consumers on all other fronts.

The ECN thing is overblown, and it will play out the next year. NITE is gold, regardless of what all conspirators and people with way too much time on their hands think. The underwriters are loading up.

G
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