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One Moment in Time

Traders Magazine, February 2002

John A. Byrne Editor

New classes of professional traders and market centers are emerging from the swamplands of our current U.S. market structure. It looks exactly like a plateful of spaghetti in a representative diagram, which is part of a new report published by Lehman Brothers' analysts Maureen Murphy and Luba Krayterman. At first, an examination of this structure should beg the obvious question: Why does it all have to be so needlessly complicated? The reason may have more to do with fear and greed, than with rhyme, reason and common sense. From destination ECNs to their hybrid relatives - as well as alternative trading systems that offer crossing and others that provide buyside to buyside bargaining sessions - the entire process has run amok. It has run amok in the swamplands of market fragmentation and price and size discovery nightmares. That is not the conclusion of the Lehman report, but it is a conclusion that the report would seem to support.

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