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To: LPS5 who wrote (8109)	3/31/2000 8:03:00 PM
From: TFF	Respond to of 12617

Primex Trading and Nasdaq Agree to Move Forward With Implementation of Primex Auction System Business Editors NEW YORK--(BUSINESS WIRE)--March 31, 2000--Primex Trading N.A., LLC is pleased to announce that the Board of the National Association of Securities Dealers (NASD(R)), parent of Nasdaq(R), approved moving forward with its agreement to license Primex Trading's electronic auction system for U.S. equities. Nasdaq staff will immediately begin to integrate the PRIMEX AUCTION SYSTEM(TM) into its marketplace, while finalizing and providing to the membership complete details of the rules that govern the system. In addition, Nasdaq will initiate the process of securing appropriate regulatory approvals. Electronic auction-style trading of Nasdaq- and New York Stock Exchange-listed securities is scheduled to begin the first quarter of 2001, coinciding with U.S. markets' transition to decimal pricing. Participation in the Primex Auction System will be open to any NASD-member broker/dealer as well as to sponsored institutions. "We are delighted to have reached this important milestone with Nasdaq," said Peter B. Madoff, manager, Primex Trading N.A. "Nasdaq's robust multi-dealer trading environment lends itself well to the Primex Auction System model, which is based on a crowd of competing liquidity providers. Integrating the system within Nasdaq will enhance overall liquidity and provide Nasdaq participants with a simple, efficient method for seeking price improvement opportunities." "We believe the Primex Auction System gives Nasdaq the opportunity to provide investors and market participants with another mechanism to receive quality executions," said Frank G. Zarb, Chairman and CEO, of the NASD -- parent of The Nasdaq Stock Market. "This state-of-the-art technology enables broker/dealers to better serve their customers, while offering Nasdaq the chance to partner with NASD members in U.S. and foreign equity markets." The Primex Auction System automates and enhances trading methods found on a traditional, floor-based exchange. Orders are drawn into a central flow that is exposed to an "electronic crowd." Participants compete for these orders auction-style, within the context of the best quotes publicly displayed. Competition encourages "bids" that can exceed the prevailing best quotes in the National Market System, providing orders with opportunities to receive price improvement. Nasdaq will operate the Primex Auction System in the U.S. as a facility of its market on an exclusive basis. In addition, Primex Holdings, LLC, parent of Primex Trading, has granted Nasdaq an option to operate the Primex Auction System in Europe and Asia. Primex Trading N.A.'s partners include leading Wall Street brokerages Bernard L. Madoff Investment Securities, Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter and Salomon Smith Barney, a member of Citigroup. These five firms, together with their clients, account for a significant portion of institutional and individual investor trading activity worldwide. For more information on Primex Trading and the Primex Auction System, please visit the company's newly launched Web site www.primextrading.com. --------------------------------------------------------------------------------

To: LPS5 who wrote (8109)	3/31/2000 8:18:00 PM
From: TFF	Read Replies (1) \| Respond to of 12617

Is this NASDAQ's attempt at setting up an ECN to it's existing system so that brokers have the option of routing to Primex(their ECN)? Also noted that they intend to let individuals trade on Primex directly(their ECN) in the future. One wonders how long the existing NASDAQ MM system will survive in this environment? Although they won't care cus the run both;) I wonder if the other ECN's will gain access to Primex? Should be quite the battle for order flow. No doubt resulting in lower costs to the individual.