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

To: gbh who wrote (4568)	10/4/1999 11:53:00 AM
From: Gary Korn	Respond to of 10027

Gary, what is this new mid-point pricing guarantee? Gary, From H&Q (via YHOO): Mid-Point Pricing Squeezes Profits. Late last quarter, Knight Securities launched mid-point pricing at the open for all eligible orders. Under Knight's mid-point pricing guarantee, the company executes orders at the mid- point of the first unlocked, uncrossed national best bid and offer. This results in price improvement of half of the spread for all pre-opening market and marketable limit orders for all Nasdaq stocks in which Knight makes a market aggregating up to 250,000 shares per issue received before 9:25 AM. Market makers must continually look for ways to add value, or order flow will be sent elsewhere, and Knight's mid-point pricing guarantee is an excellent example of a value-added service. Unfortunately, the product was rolled out just as market conditions began to weaken. Based on our discussions with management, we believe the introduction of mid-point pricing combined with generally lackluster market conditions have put downward pressure on net trading revenues for the quarter. Gary Korn