To: 10K a day who wrote (13100 ) 8/27/1999 9:19:00 AM From: RockyBalboa Respond to of 16892
SOURCE: onlinetradinginc.com corp. onlinetrading.com Reacts To Knight/Trimark Agreement With Merrill Lynch Clearing Subsidiary BOCA RATON, Fla., Aug. 26 /PRNewswire/ -- Today, onlinetrading.com (Nasdaq: LINE - news) reacted to the announcement that Knight/Trimark Group, Inc. (Nasdaq: NITE - news), the largest wholesale market maker of U.S. equity securities, will clear and settle all of its securities transactions through Broadcort Capital Corp., Merrill Lynch's clearing and settlement subsidiary beginning in mid-October. The four-year-old company is the number one execution destination for retail trades originated over the Internet. A significant benefit resulting from the relationship lies in the potential for NITE to capture order flow from Merrill Lynch's new online trading operation. ''The relationship announced is an example of how most online brokerage firms are able to charge low commission rates because they're selling their clients' orders to other firms,'' Andrew Allen, CEO of onlinetradinginc.com Corp. stated. ''This strategy can result in large profits for the firms selling the clients orders, typically at the customer's expense. onlinetrading.com is the only publicly traded online broker that does not accept payment for order flow, make markets, or earn a mark-up on its clients trades. onlinetrading.com prides itself on the fact that they are acting solely on behalf of their clients. onlinetrading.com executes all orders for clients on an agency basis for an institutional commission rate that is disclosed upfront to the client, and will never sell a client's order, or attempt to profit from selling a client's order. ''Our clients are experienced traders and investors who understand that firms offering $7 or even $5 trades are making their money behind the clients back in one of two ways -- either selling their order flow to market makers or by operating a trading desk as a profit center,'' said Andrew Allen. ''If you want to know if your firm is accepting payment for order flow, check the back of your brokerage statement or trade confirmations where the 'fine print' legal disclosures that are mandated by the SEC should appear for firms accepting payment for order flow,'' Allen continued. ''If you're losing a quarter point on a trade of 1,000 shares because your order was sold, you didn't get the best execution available, but actually lost $250. How good does that $7.00 commission look now?''