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Non-Tech : Datek Brokerage $9.95 a trade -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (10585)	12/10/1998 12:29:00 PM
From: Saulamanca	Respond to of 16892

December 10, 1998 Datek Wants to Turn Its Online System Into a Self-Regulated Stock Exchange By REBECCA BUCKMAN Staff Reporter of THE WALL STREET JOURNAL Datek Online Holdings Corp., which opened a bargain-basement, Internet-brokerage operation just two years ago, now wants to run its own stock exchange. Datek Chairman and Chief Executive Officer Jeffrey Citron Wednesday said the firm plans to ask the U.S. Securities and Exchange Commission for permission to turn Datek's current off-exchange, electronic-trading system -- called Island -- into a self-regulated stock exchange. Datek would file the petition under new SEC rules, approved last week, that change the way so-called alternative-trading systems are regulated. Until now, most of the electronic-trading systems have been classified as broker-dealers, and therefore were excluded from some revenue sources available to exchanges, such as fees for selling stock-quote data. The move would enable Island to expand its trading business beyond Nasdaq Stock Market stocks into issues traded on the New York Stock Exchange as well. "We're going to be a full-fledged competitor to Nasdaq and the New York Stock Exchange," Mr. Citron predicted in an interview, in which he said Datek will formally announce its plans Thursday. Datek already has talked generally with the SEC about becoming an exchange, according to Mr. Citron, and hopes to file its petition sometime in the second quarter. Although Datek has been under some regulatory scrutiny lately because of pending actions brought earlier this year by the SEC against two ex-employees of its former Datek Securities unit, Mr. Citron said those issues shouldn't affect the company's plans. "We're not some fly-by-night idea," he added, noting that Island now processes 80 million to 100 million shares of Nasdaq-listed stocks a day. According to a September report from BankBoston Robertson Stephens, Island has the second-largest share of the alternative-trading-system market, behind Reuters Holdings PLC's Instinet. And lately, Island has been a huge presence in the hot market of trading Internet-related stocks: In November, Island, which matches investor trade orders from brokerage firms and some institutional clients automatically without the help of a traditional market-maker, handled more volume than any of its electronic or traditional competitors in highflying stocks such as Yahoo! Inc. and Books-A-Million Inc. If Datek is able to move forward, Island would be the first electronic-trading system to take advantage of the new SEC rules, which were passed to adapt current market structures to technological trends that are reshaping U.S. and global securities markets. Already, alternative-trading systems such as Island, Instinet and Terra Nova Trading's Archipelago system handle more than 20% of total Nasdaq trading volume.

To: Jon Tara who wrote (10585)	12/10/1998 12:33:00 PM
From: AS Hibbs	Respond to of 16892

Jon, I love this interface of yours. I have been using it this morning and it is fast and clean. With the split screen, you can cancel orders on one screen and enter orders on the other. Thanks! Scott