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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (8134)9/3/1999 1:48:00 AM
From: Shane M  Read Replies (1) of 78842
 
Armin,

What is your take on the level of competition in the market making business NITE is in? It seems that almost every other week a new competitor comes aboard, many of them ECNs. While I like NITE and would like to jump aboard, I can also see a plausible case where margins collapse. NITE downplays alot of the competition saying that NITE makes their money on the more illiquid stocks that need a market maker, but I can't help but think someone will devise a very efficient trading system (similar to the ECNs) to cut out alot of the bid/ask spread that is NITE's bread and butter.

Thanks for any comments.

Shane
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