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To: gbh who wrote (3954)9/15/1999 9:27:00 AM
From: Gary Korn  Read Replies (1) | Respond to of 10027
 
these guys [MMs] are slow moving into this area [after-hours] most likely due to the fact that they won't be able to profit by fully staffing operations that don't generate the substantial volumes. Yet when they jump in and validate the whole thing, the expectation will be full liquidity. Well, no single MM can provide full liquidity and still manage risk. It requires all of them, or at least most.

Its seems obvious that the fully electronic marketplace of the ECN is at an advantage here from a "cost of doing business" perspective. And with no expectation of "real" liquidity, these guys can afford to be out front.


Gary,

Excellent analysis. Bears repeating.

Gary Korn