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Non-Tech : Ashton Technology (ASTN) -- Ignore unavailable to you. Want to Upgrade?

To: jsavage who wrote (2450)	8/25/1999 6:14:00 PM
From: mst2000	Respond to of 4443

Talk about disingenuous - ITG's senior VP attacks ATG's VTS system (which competes for some of POSIT's volume) by pointing to the failure of their own "effort" at an average price crossing system. Yeah, the other guy's system will not fly because we failed in our own efforts. Sure glad Bill Gates didn't let the cumbersome operating systems of the 60's stop him from developing a newer and better operating system (DOS) for computers in the 70's and 80's. Forget that ITG's average price crossing system is an entirely different system and methodology, which did not offer true VWAP executions, nor exchange-based clearing and credit arrangements (which are critical, among other things, in bringing broker/dealers into the system on the commitment side) nor other features critical to attracting liquidity, which is ultimately the only way to attract and cross large block trades by institutions. I think Mr. Huck will be eating his words in 90 days, when the VTS is in full gear after its staged phase-in. If he cares, that is. Funny, volatility (something that clearly is not avoided by POSIT, ECNs or the other more well known trading facilities, such as NYSE and NASDAQ), which he describes as a disincentive for using a VWAP pricing execution, strikes me as the most compelling reason to consider using it. After all, why are 8% of all trades in the market VWAP based now if it is such an undesirable approach to pricing. I think ITG is not listening to its institutional customers, who are merely looking for fair and reliable executions. With all its flaws, the Bloomberg article is the first piece I have seen referring to Ashton in the mainstream press (excluding the Philadelphia Inquirer) since Reuters reported on the possible merger of the NYSE and the PHLX. That the story was equally divided between VTS and eOX is extremely encouraging. And some focus on ATG's other initiatives should help remind the followers of Ashton that there is a lot more to the company than just VTS. MST