Worth Watching

  ============================: TUE.MAR,990302 :============================
16:15|  NYSBC(ITIG)9903  New York Stock Broker`s Club : Investment Tek Grp
 . electronic equity matching . Harry`s @ Hanover Sq .
  -   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -   -
 InvestmentTechGrp  : JohnMacDonald ; CFO .
 ECN to Quant  Institutional traders . |
 Alternative Trading Systs sprining up because of wide spreads .
  Original : Reuters Instanet . `97 new order execution rules .
  Now competition to Instanet .
 Clients want  :
  Liquidity -     get to trees [ shade trees ] - best pools of liquidity .
  Fair & efficient mkts
  efficent operations .
  Investment Decision tools

  Lowerting full range of xaction costs : mkt impact , opportunity cost ,
   commission .
  Front end software providing access to all pools of liquidity .

 Split from Jefferies . POSIT QuantEX , No disclosure of pending order size .
  `94 Jefferies IPO .18 of ITGI NASDAQ .
  `99 Anounced total spinoff of remaining  .82  stock .
  261 people , 100 prorammeres in LA & TelAviv .
  JV w Society Generale London ,
  Use both Discressonary & Soft $ . |  .19 + .13  |>| 0.32
 Elephant  Institution cmsns  6.5B$  , top 100 : 5.4B$ . have 77 of top 100
   above .45 of ITG`s Rev  . also lots of Hedge Funds .
  ITG  .0294 of total NYSE/NASDAQ Vol .
  Quarly growth | rev | EAAGR 72.4 111.5 137 212 |>| 3.82  | 95 - 98
   Pre-Tax : | EAAGR 24.9 41 47.3 80.9 |>| 3
   QuantEX Share Distribution - Sun WorkStn doing complex stratigies .
    DOT nyse , POSIT , DESK   | 144 instalations
   Also Icon under W95 |  like Excel - use ITG Desk | 500 instalations
 .4 pre-tax margin . - use machines rather than people .
 Compensation .24 of rev  | Xaxtion procsssing .21 | Rent etc .06
 Earnings | EAAGR .81 1.26 1.42 2.25 |>| 1.22

 POSIT  each hr on hr , cross on best mkt ,
 Barrier of entry ? Trust . for Bloomberg - current fragmentation of
  liquidity .
 -  Theirs unique in confidentiality of order size .
  Ease of use issue .
 Optimark - started w MMM . shows
 It`s more traditional exchanges at risk not the other new ones .
 London all electronic some years ago . SEPS .    Josh Rose would
 HongKong ? good old boy mkt - ugly .
  Shaes ou 18.7 . 2.8 insider options . Jefferyies own 15 . w be spun to
  share holders .   will be  abt 30 .  now  49$ % shares  -

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CoSy The NoteComputer

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