Commentary

Ronald Jordan
Traders Magazine Online News

Understanding Your Data is No Longer Optional

In this contributed article from Global Markets Advisory Group, the advisory discusses the importance of data and how organizations should augment existing skill sets and capabilities to add a data-focused perspective to their operating fabric.

Traders Poll

Do you expect SEC Chairman Jay Clayton to push for regulation in the cryptocurrency issuance and trading markets?

Yes

74%

No

5%

The CFTC will push for regulation

21%

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April 30, 1998

Knight & Trimark

By John A. Byrne

The success of Jersey City's Knight Securities, and its affiliated Trimark Securities in White Plains, N.Y., bodes well for a hot initial public offering by the firms' parent. The preliminary prospectus, however, raises important considerations. One is that a large percentage of the company's growth in Nasdaq and third-market trading is due to retail-sized order flow. Narrowing spreads have encouraged the company to penetrate the institutional market.

At the same time, the company has changed its payment-for-order-flow arrangements, paying broker dealers only for orders providing a profit opportunity. Limit orders do not receive rebates. Payment for order flow, in fact, decreased 10.3 percent to $16.3 million for the three months ending March 31, 1998, from $18.1 million for the comparable period in 1997.

In another area, it is possible a top company executive will be suspended from the industry, arising from the Securities and Exchange Commission's three-year Nasdaq probe. The SEC intends to recommend the executive be charged with failure to supervise several transactions executed by traders at another major wholesaler. The executive was employed by that firm before he joined Knight and Trimark in 1995, the prospectus noted.