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

To: gbh who wrote (5424)	10/31/1999 8:47:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

Bob, your numbers point out the the single glaring shortfall of the quarter. Revenue per trade. ML and others, for whatever reasons, saw NITE maintaining the $10/trade revenue number of 2Q. In times of lower volatility, it now seems apparent the $10 number is unrealistic. We now know that the long term realistic number is $8/trade, according to KP. My guess is that this number won't be consistent either, but rather, a cyclical thing, coincident with volatility, and to a lesser extent, volume. Bob and Gary, Good points. I also believe that a higher $revenue/trade number requires higher OTC volumes. Spreads make a difference, and low liquidity stocks have them. I keep recalling the cc, where they spoke of umpteen million trades being matched/handled for free. Hard to make money that way, unless having that volume allows you to play the trading game better. Gary Korn