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To: RockyBalboa who wrote (10490)	7/5/2001 7:20:55 PM
From: EL KABONG!!!	Read Replies (1) of 12810

Hi InfoStream.com, I saw Pasternak's comment earlier today. Guess what? He's right, but it needs a bit more explanation. Since the NASDAQ (and NYSE to a somewhat lesser extent) converted to decimal pricing, the spreads have actually narrowed, especially on high volume trading stocks. The loss of revenue from the lower spreads is having a real top line impact on trading firms, which is carrying through to the bottom line. Combining the narrower spreads with the lower number of overall transactions, and these guys have an earnings problem which isn't going to be resolved any time soon (IMO). Competition will keep the spreads thin on the popular stocks, but these guys should see increased earnings once trading transactions begin to rise again. When (or if) that happens is anybody's guess. KJC

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