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To: Stacy Holmes who wrote (1249)	11/30/2000 9:22:03 PM
From: LPS5	Respond to of 1426

Via SelectNet (typically nonsubscriber access), the ECN charges are standard and charged to the accessing firm. What the order entry firm adds to it is their own business, and I don't really see how that would change. Firms that subscribe to ECNs, on the other hand, have volume breakpoints or add/take liquidity spreads that contemplate their individual business models and ECN-to-firm relationships. Nonetheless, both of those factors have nothing to do with the real bone of contention, which is: how those fees, added to the quote, change what price level the order is displayed when posted or in what order it can be hit/taken. When a $15 offer on ABCD ECN is hit by a SelectNet order, ABCD's fee may be $.003/share, or $3.00 per 1000 shares. That charge is there one way or the other; it's just that now the price will either (a) be displayed as $15.003 (and therefore more expensive than a dealer's $15.00 offer) or (b) if there are multiple participants at that $15 level, will be the last to be executed against. Again, I'm not sure which of these two scenarios is the one in Proposal #8. (Anyone?) LPS5