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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: Glenn D. Rudolph who wrote (4135)9/18/1999 12:03:00 PM
From: Gary Korn  Read Replies (2) of 10027
 
Glenn,

Thanks for the synopsis. So, we stepped into the following negatives:

- interest rates (financial sector weakness)
- seasonality (3Q)
- end of lock-up
- threatened competition (ECNs)

Against those, I see the following positives:

+ potential growth of u.s. institutional order flow (currently 20% and fastest growing segment of business)
+ potential growth of euro. institutional order flow (London office, with a sales force now of at least 6 persons)
+ potential euro. OLB order flow
+ potential options order flow in 2000
+ potential growth of trading volumes over time
+ potential seasonality (4Q)
+ potential for coexistence with ECNS

I can see how the "potential" positives are unable to overcome the "actual" perceived negatives for the time being. But things change.

Gary Korn
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