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Traders Magazine, October 2003

Editorial Staff

Buyside *Buyside institutional clients want to bar specialists from competing with customers and in listed stocks prefer a large electronic market with a real-time order book. Those are some of the conclusions of a survey of buysiders by Greenwich Associates. The survey was commissioned by Instinet and polled 103 large money managers. Some of the other findings: "Nearly half of respondents would prefer to trade more off the exchange floor," according to the survey. And the most common reason given was "mistrust of the specialists." ECNs, according to the survey, were three times more likely than an exchange and twice as likely as an upstairs broker to deliver low market impact. Two thirds of the traders said that Big Board specialists and Nasdaq market makers don't add value in trading stocks. Respondents said the most important factors are low market impact, anonymity, price improvement and certainty of execution.

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