Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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August 23, 2005

Regionals' Stock Rising

By Peter Chapman

(Traders Magazine, August 2005) -- The country's four remaining regional marts are looking to partner with large brokerage houses and ECNs in order to compete in the soon-to-be-electronic listed market. They're looking for liquidity and technology, say sources abreast of the talks.

"We've been speaking to exchanges," said Marty Kaye, the chief executive of the Track ECN. "The regionals are going to develop their own ECN-type of connectivity or they're going to partner with an ECN."

Kaye's comments were made at a recent roundtable hosted by BT Radianz held at the Securities Industry Association's annual technology conference in New York. At the event, executives from ECNs, major brokers and order routing vendors all weighed in on the changes coming to the industry in the aftermath of Reg NMS.

Their reports coincide with announcements from Merrill Lynch and Citadel Investment of their investments in the Philadelphia Stock Exchange. Their reports also coincide with rumors of other investors in the Philly, including Credit Suisse First Boston, Citigroup, UBS and Morgan Stanley.

The four regional markets are the Chicago, the National, the Philadelphia and the Boston stock exchanges. To read excerpts from the conference, turn to Market Structure Roundtable. (See page 58)