Would you compare NITE with ISLD?
No comparison other than some ties to online brokerages.
NITE clears trades pure and simple.
From BBRS,
INVESTMENT THESIS
Technology, regulation, and the necessity for scale are transforming the market-making industry. Electronic access, reduced commissions, spread reductions and SEC new order handling rules have increased efficiencies for investors causing trade execution volume for market makers to increase significantly. The new environment creates significant opportunities for large scale market makers like Knight/Trimark Group, Inc. while negatively affecting the spread trading business of smaller market makers. Scale is necessary to provide efficiencies in today's lower-margin spread trading business and to create profit opportunities in proprietary trading unavailable to competitors with less order flow. Our analysis suggests the most successful market makers will be those, like the company, who can reach and sustain market leading scale through market leading technology, management execution, functionality, customer value proposition mentality, and a low-cost structure.
INVESTMENT RISKS
Among the risks are: (1) increased competition from electronic communication networks; (2) market volume declines; (3) reliance on broker-owners for order flow; and (4) decimalization which could reduce revenue per share.
ISLD - Digital Island, Inc. offers a global network and services. The company's global private network & services facilitate the deployment of various business applications, including e-commerce, multimedia and document distribution, online customer service, software, sales management and online training. Its centralized high-speed network acts as a backbone connecting four data centers, & connects over dedicated lines directly to local Internet service providers in nearly 20 countries. Digital Island also operates Internet applications and Web sites, maintains networking equipment for its customers, offers a range of data transport options which allow customers to reserve network capacity equal to their expected usage and manages computer servers. Customers include E*TRADE, Cisco and National Semiconductor.
Sounds more like PSIX or Concentric vs. NITE.
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Dave |
