gbh,
I agree it is too early to draw conclusions about after-hours trading. Most certainly, after-hours trading will broaden the markets and we can be sure NITE has plans to get a large piece of the after-hours action.
Rather, the point of my prior post was to illustrate how, AT PRESENT, this particular new after hours operation is not even making a ripple. So much for all the fear-mongering about ECN's and the effect they will have on NITE' core business in the near term. Things will take time to develop and NITE may surprise us in its adaptiveness to change.
As you say, until ECN's coordinate a single limit order book (or merge), after hours trading will pale in comparison to daytime volume.
IMO, the future model of after-hours trading will require de-fragmentation of ECN's (via mergers) in concert with one or more market makers to provide liquidity. Otherwise, there won't be critical mass for the reaction.
Knowing what I do about Knight's mgmt, I can't imagine them sitting by twiddling their thumbs while the after-hours market unfolds before their eyes. They MUST be hatching plans to participate in a big way.
BTW, gbh, you didn't think NITE had any NYSE Specialist Operation.
techstocks.com
----"It has to be Nasdaq or OTC. I doubt think they have any NYSE specialist operation."
From NITE's Q2 10-Q SEC Filing (perhaps not floor specialists, but...):
"We are the leading market maker in Nasdaq securities, other OTC equity securities, and NYSE- and AMEX-listed equity securities in the Third Market. Through our wholly-owned subsidiary, Knight, we make markets in over 7,100 equity securities in Nasdaq and on the NASD's OTC Bulletin Board. Through our wholly-owned subsidiary, Trimark, we make markets in all NYSE- and AMEX-listed equity securities in the Third Market. |
