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

To: the dodger who wrote (4910)	10/12/1999 12:54:00 PM
From: gbh	Respond to of 10027

I think NITE's ad campaign, "Where the trade gets done" is serving a purpose in reminding investors of that. My feeling is anyone who even attempts pre or post market trading doesn't expect the liquidity of regular market hours, yet. I know I don't, and I attempt to trade after market just about every day (generally trying to buy 1/4 or 1/2 below the closing price). Plus, many of the OLBs are partnering with various ECNs...I don't think NITE wants to bankroll that--directly or indirectly. NITE should have only a single interest in this regard. And that's keeping the order flow coming from its current flock of OLBs, and trying to attract new ones. IMO they could easily snuff out this post market ECN threat by providing the liquidity themselves. They will do this at some point, once the ECN tie up together, and start providing greater liquidity. At that point the ECNs will be more of a competitive threat. I think Amer Express with their newly announced "free on-line trading" business model makes an excellent suitor for NITE. I can't think of a better way to recoup the cost of that "free" trade than in the difference of the bid/ask. Oh, that AMEX order flow should gererate quite a nice subsidy for those free trades. Hopefully, NITE is bidding for it. Actually, doesn't AMEX have its own MM'ing operation? Not sure about this. They used to own Lehmann Brothers. Don't think they still do. Gary