CATCHING THE WAVE: ELECTRONIC TRADING FUTURE LOOKS FINE; INSTITUTIONAL INVESTORS EMBRACE TREND; USERS UP, BUT VOLUME DOWN.

Pensions & Investments, July, 1999 by Barreto, Susan

GREENWICH, Conn. -- Institutional investors' use of electronic trading systems will grow this year, according to a recent Greenwich Associates study. For listed and non-listed trades, ECNs such as Instinet, ITG's POSIT, Bloomberg's TradeBook, and OptiMark are capturing about 50% of the trades overall, while they are used in 70% of the trades of ``mega-institutions,'' the report said.

``When we specifically ask what are the most important trading changes institutions would like or actually plan to make in the near future, some 30% of those giving a positive response talk in terms of electronics, with many specifically mentioning a variety of nontraditional systems,'' John G. Colon, a partner, noted in the report, ``Advances and Anomalies in `Nontraditional'...

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