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Non-Tech : CYBERTRADER -- Ignore unavailable to you. Want to Upgrade?

To: William W. Dwyer, Jr. who wrote (2254)	3/31/1999 11:45:00 AM
From: William W. Dwyer, Jr.	Respond to of 3216

Just in case anyone missed this relevant and interesting press release yesterday, I'll post it here with the Yahoo link to the PRNewsire article: biz.yahoo.com --------------------------------------------------------------------- Tuesday March 30, 4:25 pm Eastern Time Company Press Release SOURCE: CyBerCorp, Inc. CyBerXchange Offers 'Intelligent' and Electronic Order Routing to All Market Makers and ECNs Over the Internet AUSTIN, Texas, March 30 /PRNewswire/ -- An article about stock trading on the Internet in the New York Times on Sunday, March 28th 1999 described investors' ''frustrations over poor prices'' and ''the fragmented marketplace created by the rise of the ECNs.'' Most orders are routed by online brokers to either a small number of Nasdaq Market Makers, which pay for the order flow, or to one of the ECNs, which are often owned by the online broker. According to the New York Times, ''If ECNs were all linked into a central order book that problem would disappear. The NASD wants to knit the marketplace together, but has experience resistance from members.'' CyBerCorp's solution to the problem, CyBerXchange, comes on line in mid-April. CyBerXchange is a proprietary intelligent and independent ''Central Order Routing and Execution'' (CORE) technology developed by CyBerCorp. It is designed to direct and execute orders in real time to whichever Market Maker or ECN is offering the best price and the required volume in that moment. The technology combines an ''intelligent'' order routing capability, using Expert Systems/Artificial Intelligence techniques, and the ability to see every Bid and Offer from every Market Maker and ECN in real time. Equally, it is an ''independent'' process because neither CyBerCorp, nor its wholly owned CyBerBroker subsidiary, receive payment for order flow from any Market Makers or own an ECN. The CyBerXchange technology runs on a central computer system in Austin, TX with direct electronic links to all Nasdaq Market Makers by way of the NASDAQ SOES and SelectNet systems. In addition CyBerXchange is linked directly to a number of the leading ECNs, including Island, plus routes all other ECN orders electronically via the SelectNet system. CyBerXchange receives real time, Level II bid, ask and volume data from all Nasdaq Market Makers and ECNs and in addition receives such data directly from many of the ECNs. Philip R. Berber, Founder and CEO of CyBerCorp, explains that CyBerCorp has applied electronic warfare techniques to the process of ''hunting and seeking'' among the prices and volume of shares being bid and offered in real time by each of the Market Makers and ECNs. ''We have applied an intelligent and independent technology process to route the orders to the counter party or parties that are offering the best price available in the market for any particular order,'' said Berber. ''While the technology itself is very advanced and quite complex, we have made it very easy to use by way of the CyBerX front end.'' CyBerX will be launched in mid-April at the Investment Expo in New York City and is, according to CyBerCorp, ''the next generation in electronic trading on the Internet.'' CyBerX is downloadable free of charge via the Internet and includes a direct link to CyBerXchange. All orders are routed through CyBerBroker to the Market Makers and ECNs. A study by the NASD in 1998, cited in the Times, indicated that ''in 81% of all Nasdaq stocks actively quoted, traditional Market Makers had better prices than any ECN. In only 11% of the stocks did ECNs have superior prices.'' The study also concluded that the average block of stock available at the best bid or offer on an ECN last year was only 340 shares compared with 1741 from a Market Maker. Berber welcomes the findings of the study. He confirmed that ''one of the key reasons why we developed CyBerXchange was to allow traders to benefit from any and all counter parties, irrespective of whether it was a Market Maker or ECN, so long as it was offering the best price and the required volume for that order.'' The New York Times article also focused on the fact that ''most investors focus only on their brokerage commissions'' and quoted a study by Salomon Smith Barney, which concluded, ''commissions make up only 10% of an investor total costs.'' ''Understanding and minimizing slippage and transaction costs are the key to eliminating the hidden costs of online trading,'' says Berber. Slippage refers to the difference between the best price available in the market versus the price that the order was executed at. ''With CyBerXchange, online traders can benefit from faster and smarter executions at a better price.'' Formed in 1995, CyBerCorp is an electronic trading technology group, which develops the trading platforms CyBerTrader and CyBerX, and through its subsidiary, CyBerBroker, serves as an online broker for more than 1,000 active investors and day traders. CyBerCorp's web site is cybercorp.com. For more information, please contact Holt Hackney, Communications Manager, at 512-320-5444 or hhackney@cybercorp.com. SOURCE: CyBerCorp, Inc. Help Copyright © 1999 PRNewswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. 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