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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: gene_the_mm who wrote (564)	8/16/2000 2:02:35 PM
From: Sir Francis Drake	Read Replies (2) \| Respond to of 1426

gene, great thread, I recommended it on another board. A few questions... as an MM, I'm sure you have had quite a bit of exposure to Knight Trading Group (NITE). I realize that you work for a very different kind of outfit (at least as far as size goes), but if you have the time, could you please give your feedback on: 1)Do you or you company use any kind of propriatary software to assist with trading decisions, the way NITE does (and I don't mean commercially available charting packages)? If you do, who writes your software? 2)Do you feel that NITE could grow their market share in otc (not bb) and 3rd market issues? Does your company handle 3rd market? 3)Does your company feel any pressure from competition by NITE? If yes, do you feel your company can respond competitively, or is it looking tough? What are the main challenges vs NITE - is it capital constraints (for software, hardware infrastructure etc.), orderflow payments, human capital (quality of traders<ggg>), etc.? 4)Do you think certain developments going forward, such as decimalization, market regulatory changes (SEC increased emphasis on "best price" executions), competitive pressures (adoption of mid-point-pricing by NITE, MASH etc.) will have a negative impact on your business, and could that cause your company to sell out to another larger MM operation, or close shop? 5)Earlier in the year, many OLBs have done "load balancing" of their order flow, and distributed this across many more MM shops. Have you felt increased orderflow from OLBs despite slower trading volumes in the market compared to Jan/Feb/March of this year? F.ex. as a result of load balancing, NITE lost market share - has your company gained market share (possibly at NITE's expense?) 6)What is your opinion of NITE as a company, the quality of their traders, their management, and the prospects for their business. What is NITE's reputation in the MM community as far as you know? 7)Any general thoughts on the MM business going forward? I realize you may not feel at liberty to speak completely freely, but hopefully the anonymity of the board will encourage you convey to your uncensored thoughts (or you can PM me<ggg>). I know it is a whole bunch of questions - thanks in advance! Cheers, Morgan