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Nasdaq Pulling Plug on Lame Primex

Traders Magazine, October 2003

Peter Chapman

Primex is on the verge of collapse. The alternative trading system for listed and Nasdaq stocks "is on the endangered list but still breathing," according to one Nasdaq official. However, Nasdaq does not intend to renew its contract with Primex at the end of this year, added the official, who declined to be named. Launched three years ago as a vehicle for price improvement on small orders, Primex never garnered much order flow. Recently, the system was only processing about 12 million to 15 million shares per day. On day one, volume exceeded two million shares. The Primex Auction System was introduced as a facility of Nasdaq by Bernard L. Madoff Investment Securities with partners Merrill Lynch, Goldman Sachs, Citigroup and Morgan Stanley.

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