Optimark analysis, from YHOO board:
The truth about the Optimark deal:
by: nitesweats 11/1/1999 10:34 pm EST
Msg: 104055 of 104101
There seems to be little understanding of the impact of this OPTIMARK/KNIGHT deal. I've posted on this subject all summer long, but now looks like a great time to do it again. Let me try to shed a little light on it, folks.
Some of you are grasping some of the peripheral concepts at work here. I'll pull it together for you, and then the biggest party the longs have ever seen will begin.
The NASDAQ is going public this coming year in response to the ECN threat. Yes, the ECNs threaten the NAZ, they don't threaten NITE, because they are becoming their own little exchanges, and together could become competition to the NAZ.
I've tried to make this point again and again whenever some short tried to say ECNs were a threat to NITEs business, as well as demonstrating that NITE and the ECNs are really partners.
Anyway, here's the great part of the new NAZ setup. The NAZ had announced that they were going to use Optimark as their 'central order book'. This means that Optimark will be the one primary ECN of the new NAZ. Moreover, Optimark has been on record as being committed to using the established liquidity mechanisms (market makers).
Based on this, I always knew that the future of NITE was bright, although sometimes it didn't seem like NITE's mgmt was being aggressive enough dealing with the ECN threat perception problems. But this news, I didn't expect. KP is a F*CKING GENIUS !!!
The Optimark deal is this: To pay NITE for the services it will provide Optimark for providing liquidity, Optimark is going to pay NITE in OPTIMARK STOCK !!!
NITE is going to become a major shareholder in the MONSTER ECN that the NAZ is going to use to drive the rest of the ECNs out of business !!!
With this one deal, KP has set the wheels in motion that will make NITE the Microsoft or Intel of the stock market. With the full support of the new NAZ, with a large ownwership stake in the ECN that will be the only one standing when the smoke clears, NITE has clearly established itself as the NUMBER ONE FORCE in the 21st century stock market.
And I'm real long !!! What a great time to be alive !!! Feel free to begin celebrating folks !!! |
