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To: Jon Tara who wrote (8819)	3/10/2001 9:44:56 PM
From: LPS5	Respond to of 12617

Wow, thanks for that detailed reply! Anytime, Jon. You're a stand-up guy. That would imply executing the smaller quantity of the total bid size and the total offer size, at the midpoint of the spread between the average bid and average offer. Hmmm. Since I don't quite get that, let me say this: the bid and offer of the stock being crossed are used only as a benchmark by which the midpoint of the spread is determined. The actual size represented at the bid and offer of the stock at that particular moment are not executed against, though. If stock XYZ is bid 10,000 for 20, 20 1/8 offered for 25,000 on the exchange at the moment that a POSIT cross takes place... (let's say that in POSIT were 100,000 to buy, 120,000 for sale) you'd see... 100,000 @ 20 1/16 ...cross the tape, with no effect on the bid and offered size. Incidentally, the seller would either get 20K not done or have opted to keep the 20K for sale in the next cross. It looks like POSIT is just letting the REST of the market determine the price, though. Yes, that's correct. The bid and offer on the NYSE or NASDAQ at the randomly selected second in that five minute crossing window are the determinants of the crossing price via their midspread...so, if there is a halt, there can't be a cross. And that works just fine, because a halt would apply to ATS' as well as exchanges and OTC trading, of course. Absent the other market participants, then, POSIT wouldn't work at all, then, right? That's absolutely right. During a halt, or if there was a BW/OW situation (which I've only seen in the OTCBB and Pinks, which POSIT doesn't cross), a cross wouldn't be possible. LPS5

To: Jon Tara who wrote (8819)	3/16/2001 10:51:39 AM
From: LPS5	Respond to of 12617

Since you asked, here are some numbers. Recent POSIT Volume [Shares Matched] Time Period.....Total Shares.....Per-Day Averages Last Week.....134,571,763.....26,914,353 March01 to date.....295,473,369.....29,547,337 1st Quarter 01.....1,812,490,561.....38,563,629 Year-to-Date.....1,812,490,561.....38,563,629 LPS5

To: Jon Tara who wrote (8819)	3/21/2001 8:33:54 AM
From: LPS5	Read Replies (1) \| Respond to of 12617

ITG's POSIT Stock Crossing System Adds Morning Session NEW YORK--(BUSINESS WIRE)--March 21, 2001--Investment Technology Group, Inc. today announced that effective March 26, 2001 the POSIT(R) morning match times will change providing an additional match in the first hour of trading. The new match times will be 9:40, 10:00 and 10:30. The other match times will remain at their current times "on the hour" at 11:00, 12:00, 1:00, 2:00 and 3:00. All times are Eastern Standard time. "The first 90 minutes of trading are generally the busiest of the trading day," stated Christopher J. Heckman, co-head of institutional trading and a Managing Director of ITG. "By adding a match during this period, POSIT continues to mirror the liquidity profile of the market and adjust to the changing needs of our clients." POSIT, the world's largest equity matching system, provides a substantial pool of alternative liquidity with annual volume totaling 7.9 billion shares in 2000. The system, which matches institutional buyers and sellers anonymously, provides advanced tools for executing complex automated transactions. POSIT provides valuable savings to ITG's customers in three ways. First, since there is "zero information disclosed" by participating in the system, the "market impact" or "footprint" left by moving the market away from the order is eliminated. This is typically cited as the largest cost of trading. Second, buyers and sellers in POSIT are matched at the mid-point of the bid/offer spread, which means the client saves half the spread. Third, ITG's highly automated systems for gathering, trading and clearing client orders provides a highly efficient low cost infrastructure and a correspondingly lower explicit commission charge. A recent study concluded that POSIT saved ITG's clients $1.2 billion last year. © Copyright 2001, Bloomberg L.P. All Rights Reserved. So apparently they're replacing the current 9:45 and 10:15 crosses with three new ones: 9:40, 10:00, and 10:30 (all am EST).