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Non-Tech : Wit Capital Group Inc - (Nasdaq - WITC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (835)	11/15/1999 10:07:00 PM
From: Mohan Marette	Respond to of 845

Wit to Delay Off-Hours Trading System Until Next Year (Update1) 11/15/99 3:38:00 PM Source: Bloomberg News (Adds Wit president's comments in 6th paragraph.) New York, Nov. 15 (Bloomberg) -- Wit Capital Group Inc., an online investment bank, is delaying the start of after-hours trading until early 2000 since rivals already offer similar services and because of a pending acquisition. Wit Capital has spent $3.6 million on the service, which it calls its Digital Trading Facility, and will defer recognition of those costs until next year, the New York-based firm said in its quarterly Securities and Exchange Commission filing. ``Although the company has continued to spend and prepare for the roll-out of its Digital Trading Facility, it is currently evaluating whether the changes, which have occurred recently regarding after-hours-trading, have materially changed the environment,' Wit said in its filing. Datek Online Holdings Corp., Fidelity Investments, Morgan Stanley Dean Witter Online Inc. and Charles Schwab Corp. have started after-hours trading in the past two months. Datek, the fifth-biggest Internet broker, gets 5 percent of its volume before the New York Stock Exchange opens at 9:30 a.m., or after it closes at 4 p.m. Wit's plan has also been affected by its planned $320 million purchase of technology investment bank Soundview Technology Group Inc., announced Nov. 1, ``and the continuing need to manage and enhance the company's online brokerage infrastructure for . rapid growth,' Wit said. ``In light of these developments, the company has decided to defer its roll-out plan until early 2000, while it continues to evaluate how best to maximize the value of its Digital Trading Facility assets.' To do that, the firm may decide to use the system to trade secondary offerings or international securities, said Ron Readmond, president and co-chief executive. He said the delay won't affect investors' perceptions of Wit because the firm hasn't given analysts any information on projected revenue or profit from the after-hours system. Wit shares rose 1 5/16, or 5.9 percent, as shares of Internet financial services firms surged on optimism about growth in customer trades. The SEC report was filed after the close of Nasdaq Stock market trading. Also today, Schwab, Ameritrade Holding Corp. and TD Waterhouse Group Inc. said they will start their own investment bank to secure more shares of initial public offerings for clients. cnetinvestor.com