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

To: Gary Korn who wrote (4362)	9/29/1999 1:59:00 AM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

9/27/99 Sec. Indus. News (Pg. Unavail. Online) 1999 WL 24067400 Securities Industry News Copyright 1999 Securities Data Publishing Monday, September 27, 1999 ISE Picks Davidge to Connect Member Firms Michael Dabaie The International Securities Exchange, the start-up options exchange slated to begin operations in March, said last week that it will use Davidge Data Systems Corp.'s Davidge Message-Oriented Middleware to connect its member firms' order routing systems to the exchange's trading system. Additionally, Davidge will add ISE to its DavNet order routing network connecting brokerage firms with exchanges. Currently 80 brokerages as well as 37 exchanges and industry utilities, including Depository Trust Co. and National Securities Clearing Corp. are part of DavNet. When it begins trading, ISE will use a modified version of Stockholm, Sweden-based OM Technologies' Click system for its trading platform. The Davidge software will connect member firms' order routing systems to Click and will format messages back and forth. The package also includes compliance with the Financial Information Exchange protocol, said Nick Davidge, chief executive officer of New York City-based Davidge. When looking at software, ISE wanted a product that could transform its member firms' message protocols into a format understood by the OM system and that would integrate with the exchange's hardware, said Gary Katz, ISE's senior vice president for marketing and business development. Davidge distinguished itself because of its familiarity with protocols used by the options industry as well as OM applications, Katz said. "I know a lot of firms using Davidge. This wasn't [a vendor] saying Well, I've never done this, but I think I could do it,"' Katz said. He declined to name any other vendors that ISE considered. ISE was also seeking a product that would not require its members to put in additional systems development, on top of year-2000 and decimalization preparations, Katz said. The FIX functionality was not a major selling point for ISE, but could prove useful in the future, Katz said. Currently options exchanges do not communicate using FIX, Katz said. "FIX is very clearly documented and robust on the equities side, but not so much on the options side," he said. ISE and Davidge are installing the software, and plan to begin testing with member firms soon, Katz said. He added that specific firms won't be acting as beta testers, but rather that each firm will test the software as it is connected. ISE will begin member testing of the OM trading application in December (Securities Industry News, May 24). The Davidge software operates on several different versions of Unix and is installed at about 30 brokerages firms, Davidge said, but declined to name any. Katz said ISE is on track to begin trading in March, as planned. The exchange is still waiting for a ruling from Securities Exchange Commission on its application to operate as an exchange. "SEC is looking at the comment letters [on the proposal] and our response and will make a decision from there," he said. ISE, led by E-Trade Group founder and the exchange's chairman, David Porter, has received financing commitments from a consortium of full-service and online broker-dealers, including Ameritrade Holdings Group, Herzog Heine Geduld, the Knight/Trimark Group and Scottsdale Securities. ISE will trade in options of 600 U.S. stocks and American Depositary Receipts, representing 90 percent of daily turnover in the United States (Securities Industry News, Nov. 16, 1998). David Krell is ISE's president, reporting to Porter. Dan Friel, senior vice president and chief information officer, is responsible for technology procurement and operations. Word Count: 552 9/27/99 SECINDNEWS (No Page) END OF DOCUMENT