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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (22798)	5/17/1999 4:13:00 PM
From: Sir Francis Drake	Respond to of 74651

OT - NITE. All the numbers on NITE look good (profit margin, ROA, ROE), exploding earnings. While from a fundamental point of view it may look that business can only expand (not like trading will ever get smaller), just a note of caution, which may not be obvious if you are just looking at the numbers: there are possible clouds on the long-term horizon: ECNs. Right now, all trading is expanding, so NITE is doing very well (and NITE is expanding its market share relative to market expansion as well). However, the % of trades executed through ECNs is growing. Furthermore, there are proposals floating around (from INCA) to organize a huge central limit order book (basically getting all ECNs together). Since you say you are in the business, I need not tell you that this is not going to be great for MMs. And, there are some SEC/NASD rule proposals that may squeeze MMs a bit. So, a note of caution, long term. Morgan