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To: Herschel Rubin who wrote (5043)	10/14/1999 3:14:00 AM
From: Herschel Rubin	Respond to of 10027

Interesting comments on ECN's (courtesy of Terrinet on the Yahoo board). Note the BOLD emphasis added in last few paragraphs.... FROM SECURITIES INDUSTRY NEWS Monday October 11 More on the changing landscape: At an industry conference last week at Pace University the talk was often about what the future of ECNs would be going forward. "Until they differentiate themselves, they'll consolidate" Other than Instinet or Island,"the rest are sort of look-a-likes" "There just isn't going to be a dozen or a half dozen venues where buyers and sellers meet.There has to be consolidation." "For ECNs to succeed they will need to have a different business model than the NYSE and NASDAQ and so far they don't (Don't ask me to explain THAT comment!) Even Island president Matt Andresen said that "ECNs existing in small, rather illiquid pools of trading is not really a viable business model going forward." He did say he thought some would successfully adapt. Expect more announcement from buy and sell side firms that they are supporting this or that trading system. Several panelists took pains to say that many of the investments being made by Wall Street firms in ECNs and ATSs are IN NAME ONLY. Some said "support" from institutions will do little unless those commitments are accompanied by trade orders. "ECNs are all about (getting ) the liquidity, not ownership; all these (ownership) stakes have not meant order flow yet." ATS will eventually be used to replace firms present (old) trading platforms. messages.yahoo.com