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ECNs Rip Nasdaq on Capitol Hill

Traders Magazine, November 2002

Gregory Bresiger

A trio of ECN officials blasted Nasdaq in testimony on Capitol Hill, which was taken by House Energy and Commerce Subcommittee. The committee held a hearing on the progress of ECNs and whether they are helping the individual investor obtain better executions. All ECN officials told the committee that fragmentation isn't bad; that it promotes competition and benefits investors. Kevin Foley, chief executive of Bloomberg Tradebook, also told the committee that Nasdaq and other "government-sponsored monopolies" do not promote innovation. But officials of the NYFIX and the American Stock Exchange also criticized ECNs, the largest of which, the Island and Instinet combo, didn't send a representative to the hearing.

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