Commentary

Erik Hoel
Traders Magazine Online News

Will The Bitcoin Bubble Pop Or Will It Envelop Us All?

Guest contributor Erik Hoel asks the question whether the worst is over for bitcoin holders, or still yet to come, what is yet to come? And why.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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March 1, 2000

Redibook Partners

By Peter Chapman

Spear, Leeds made headlines last August when it announced it would partner with Charles Schwab, Fidelity Capital Markets, and Donaldson, Lufkin & Jenrette in the operation of its REDIBook ECN. The prospect of all those retail orders flowing into the small ECN made the Street take notice.

The deal is now set. REDIBook ECN LLC is now a NASD-approved broker dealer owned by the four partners. SLK will also operate the system. Randy Frankel is a board member as is Lon Gorman from Schwab; Peter Cohan from DLJ; and Bob Mazzarella from Fidelity.

Frankel explains why SLK sold out. "We saw a lot of other ECNs aligning and we felt we needed to partner up as well to add liquidity to the book," he said.

Ranked fourth in terms of shares traded behind Instinet, Island, and BRUT, REDIBook is considered one of the fastest ECNs for trade executions. A TowerGroup report shows REDIBook a close second to Island in terms of round-trip message delivery. On average, it takes a quarter-second to complete a trade on REDIBook and get a report back. That's fast. On Instinet, the slowest of the pack, it takes over two seconds.