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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sleeper who wrote (285)	3/28/1999 11:48:00 AM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 10027

Knight/Trimark Up 8% After CEO Remarks At Conference-----> By Caroline Humer (March 25, 1999) NEW YORK (Dow Jones)--Knight/Trimark Group Inc. (NITE) shares rose more than 8% after the company's president and chief executive gave an upbeat presentation early Thursday morning to investors at an ABN AMRO conference on growth in Miami, an analyst said. ABN AMRO analyst Scott Appleby said the executive, Kenneth Pasternak, told investors that during the last six weeks, Knight/Trimark hasn't had one day of net trading losses. Knight/Trimark operates both a Nasdaq market-making unit, Knight Securities, and a New York Stock Exchange member firm, Trimark Securities. Overall market strength is also likely behind gains in shares of Knight/Trimark and the online brokerage stocks, Appleby said. The Dow Jones Industrial Average was recently up 134.03 at 9800.87. Knight/Trimark shares were recently up 8.1%, or 4 1/4, at 56 3/4, on Nasdaq volume of 749,300, compared with average daily volume of 1.5 million. "These stocks are wonderful bull market stocks," Appleby said, gaining as more and more individual investors pile into the market. But as speculation about a bear market began to emerge with the market's decline this week, those stocks were hit. Thursday's gains are a reversal of that, he said. Online brokerage stocks that gained strongly Thursday include Charles Schwab Corp. (SCH), up 7.1%, or 6, at 90 3/8; Ameritrade Holdings Corp. (AMTD), up 7.7%, or 4, at 56 and ETrade Group Inc. (EGRP), up 6.7%, or 3 9/16, at 56 1/2. Separately, Knight filed its annual report Wednesday evening with the Securities and Exchange Commission. In that report, Knight said that it is currently implementing a proprietary electronic-communications gateway product, called e.Knight, that will enable broker-dealers and institutions to access the Knight and Trimark trading systems through the Internet and other electronic communications gateways. Knight already is benefiting from the explosion in online trading indirectly through its customers, according to the annual report. In 1998, Ameritrade, Chase Manhattan Corp.'s (CMB) Brown & Co. Securities Corp., Morgan Stanley Dean Witter & Co. (MWD) unit Discover Brokerage Direct, ETrade and Toronto-Dominion Bank's (TD) Waterhouse Securities accounted for 33% of order flow and Waterhouse alone accounted for 11% of order flow. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I don't think I saw this posted... --Bill

To: Sleeper who wrote (285)	3/28/1999 1:51:00 PM
From: freeus	Read Replies (1) \| Respond to of 10027

Here we go: Its pretty long so I may put it on two posts. "The New America" Thursday May 25, 1999 "Market Maker Gearing up for More Trades" You dont have to reside amid the glitz of Wall street to make it in the financial world. Knight/Trimark Group, Inc, the coungry's largest stock-trading firm, has made less than glamorous Jersy City N.J. its home. Why? Because it makes most of its trades electronically, it need not put up with Manhattan's monstrous rents. "We're positioned near New York, the capital of market making, but we pay just $16 a square foot (a month)" said CEO Kenneth Pasternak. The company trades more than 11,000 securities listed on the Nasdaq Stock Market and other exchanges. Based on trading volume, it controls a dominant 17% of the market-making business, analysts say. Twenty-seven brokerage firms created Knight/Trimark in July 1995 as a low-cost technology-oriented firm to trade against their clients' orders. The company has since grown rapidly as online stock trading has continued to catch on. In the fourth quarter alone, the number os shares it traded rose 97% from a year ago. "We're the largest destination for online originated transactions" Pasternak said. Knight/Trimark is investing $20 million in technology this year. It plans to upgrade all its systems from the back office to the traders' desks. The company can currently handle up to 650,000 trades a day. After the opgrades, it should be able to support more than 1 million trades daily. Traditionally K/T relied on its investors sich as E trade Group and Ameritrade Holding to send it customer orders. Its rivals include other brokerage firms and privately held market makers. K/T uses computers to route orders to one of its 200 traders. Rather than charge commissions, it makes money by trying to bet correctly on the market. It does, however, pay brokerage firms for their retail orders, a common practice in the industry. And the company has quite a track record. In the fourth quarter it paid $26.4 million for customer orders while recording net trading revenue of $115 million. It needs to have winning trades 55% of the time to show a profit, Pasternak says. MOre on next post.