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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (3892)	9/11/1999 9:32:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 10027

I would think they (OLBs) have some other ideas on how these investment will net them real dollars some time in the not too distant future Gary, How? What is the business model? The method for making money? How is it superior to NITE's, and why cannot both exist in the same milieu? I tried to explain, in my posts, why the ECN "threat" may not really hold up. What then, are the reasons why NITE's model cannot stand? Given how ECN's make money (not on the spread, only on liquidity charges, and in ISLD's case less than 1/4 cent per share), I just want to know how they compete with NITE in attracting order flow and business? (Even assuming full liquidity in all stocks, which is a far, far, far cry from reality). Maybe the OLBs want a piece of ECNs so that they can put an ECN button on the order entry screen and, when the customer chooses that option, the OLBs at least get something (on the theory that something is better than nothing, even if they may get MORE from execution through NITE). Like a supermarket, you've gotta have all the products on the shelf. If this is what is happening, then you have to look at the customer (Ma and Pa trader) and figure out what they are likely to choose. For market orders, heck, the darn things will go to NITE for order flow payments and a cheaper commission (Ma and Pa like that). All I know is that Ma and Pa are very price sensitive (heck, it is that price sensitivity itself that put AMTD, EGRP and the like in business). Gary Korn