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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Jacktoad who wrote (4159)	1/8/1999 1:56:00 PM
From: SMALL FRY	Read Replies (2) \| Respond to of 13953

Great comeback!!! The bus left the station already and some people got left behind waiting at the 30 mile marker. SF

To: Jacktoad who wrote (4159)	1/11/1999 8:15:00 PM
From: Jacktoad	Read Replies (1) \| Respond to of 13953

NASD panel looks at intraday "online" volatility January 11, 1999 07:30 PM By Jennifer Westhoven NEW YORK, Jan 11 (Reuters) - Wall Street players met Monday to look at ways to deal with the phenomenal jump in volatility on the Nasdaq stock market caused by online trading of internet related stocks. The group, an offshoot of a National Association of Securities Dealers (NASD) committee, is especially concerned about the growth of "day" trading -- buying and selling stocks purely for short-term gains. Online traders are seen to be a driving force behind this trend. "The problem is not the stocks themselves, but the frenzy in trading," said Bernard Madoff, who heads the New York brokerage firm that bears his name. The group is not expected to take any action on online trading yet its discussion will cast a spotlight on an issue that has worried many market participants about a possible "bubble" surrounding the internet shares. Madoff worries that online traders, lulled by months of fast execution at market prices, could be in for a very nasty surprise if a downturn shows up on the horizon. "Thousands of online momentum traders would be rushing for the exits at the same time. You'd have a very dramatic price move and people could be very unhappy," he said, saying trading has turned into "an Olympic video game". Online trading and interest in Internet stocks, has rocketed. Online discount broker ETrade Group Inc. EGRP jumped 16 percent Monday as its quarterly losses proved to be narrower than Wall Street's forecasts. Etrade said online trades were up 75 percent from last year. The NASD meeting includes broker-dealers, market makers, institutional committees, exchange officials and representatives from electronic trading networks. It is an offshoot of the quality of markets committee at the NASD, the parent of the Nasdaq stock market and American Stock Exchange. Among those scheduled to attend are Bill Broka, head of Nasdaq trading and marketing services; E.E. "Buzzy" Geduld, president of Herzog Heine Geduld Inc; Kenneth Pasternak, head of Knight/Trimark Group Inc. NITE and Richard Schenkman Richard, chief operating officer of Instinet. Instinet is a subsidiary of Reuters Group Plc. Schenkman said the committee would analyze issues from an academic perspective. "One issue is: are markets more volatile than at any other time in history, or is this a natural occurrence in the lifespan of a bull market?" he said. One idea being floated is the use of trading halts on Nasdaq during specific, volatile situations. Currently, stock trading is only halted for regulatory issues. But the idea has many detractors. "Most people believe that halting securities and taking out the movement of capital during trading, actually incurs more volatility," Schenkman The NASD said the committee would be looking for "long-term solutions" to the higher volatility. The NASD group has been working for month on volatility issues, including the separate issue of initial public offerings. Madoff has talked about the advisability of limit orders, which specify the top price a customer is willing to pay for a stock, at an IPO opening. This might reduce some volatility surrounding IPO opening trades. Sometimes, the sheer number of orders at the opening of an IPO can push a stock to astronomical levels that cannot be sustained in later trading, causing an outcry among both IPO buyers and traders. "Market structure is one of the most delicate issues you can think about," Schenkman said, saying the committee would not make any structural changes lightly. "It's like squeezing a balloon. One change in one area causes big changes in other areas." ((Wall Street Desk +1 212 859 1881; email jennifer.westhoven@reuters.com)) REUTERS