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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Jagow who wrote (10819)	3/23/1998 8:37:00 AM
From: Henry Volquardsen	Respond to of 20681

Bob, *OFF TOPIC* It is a subject of great import to me. I am a principal in my firm and very much aware of the trends in the business. There was an article somewhere recently about the merger of AMEX and NASDAQ that was entitled 'The Death of the Middlemen'. The financial services industry is undergoing tremendous change and it is going to force a lot of businesses to reassess their focus. Electronic trading and the information revolution is transforming the industry as sure as it is transforming other sectors of the economy. Traditional market making is dying. When liquidity is cheap, you can't make a living selling liquidity. 90% of the industry has made it's living selling liquidity. The only way to survive in this environment is to either provide value added (structuring, derivatives, leverage etc) or by being a buyer of liquidity (hedge funds etc.). The old business of buying from Charlie at 102-27 and selling to Frank at 102-27+ is getting squeezed. Anyone planning to continue just selling liquidity should check out the pay structure at Waterhouse or any other discount broker. Henry