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To: Bob Kim who wrote (4950)	10/13/1999 12:27:00 AM
From: John Chapman	Respond to of 10027

On some of the BB stocks have been in I know for a fact that 50 percent and 100 percent spreads are common. I do not know if NITE plays them like some of the mm's do. The spread varies from stock to stock and from situation to situation. It also depends on how much inventory a particular mm wants to carry from time to time on each stock it makes a market in and how well it turns a profit on that inventory. I do not pretend to even come close to knowing evrything else a MM can do to profit. The BB is a different world indeed and what you say about anyone having a handle on how well NITE is doing in that market except NITE is very true.

To: Bob Kim who wrote (4950)	10/13/1999 2:24:00 AM
From: Herschel Rubin	Respond to of 10027

Bob, Gary, A corollary of Gary's "NITE is a play on activity in small cap stocks" would be the following: The small cap stock realm is the least tradeable by ECN's. Therefore, ECN's should pose minimal threat to NITE's high margin business. Furthermore: After-hours trading for even larger-caps stocks will most likely mimic small-cap stocks in terms of low volume and higher spreads than daytime hours. This is the environment NITE excels in. If NITE continues to provide liquidity as after-hours takes off, NITE's profitability in this space may mimic that of their OTCBB business.