|OCTOBER 3, 2000|
|Knight Trading Group Implements New Execution Standards Effective October 2, 2000|
JERSEY CITY, N.J., Oct. 3 /PRNewswire/ -- Knight Trading Group, Inc. (Nasdaq: NITE) announced today that its subsidiaries Knight Capital Markets and Knight Securities have implemented new execution standards for orders received in New York Stock Exchange (NYSE)- and American Stock Exchange (AMEX)-listed securities, and in Nasdaq securities. The new criteria, effective October 2, give Knight greater flexibility in providing liquidity across the evolving listed and Nasdaq markets.
The new execution criteria were outlined in letters sent last week by Knight Capital Markets and Knight Securities to their respective clients. Full-text copies of both letters, as well as a full review of the execution standards of the two subsidiaries, are available on Knight's Web site at http://www.knighttradinggroup.com or at http://www.knight-sec.com.
Knight Capital Markets, the Company's NYSE- and AMEX-listed securities market maker, has made revisions to its execution standards to stay ahead of the profound changes that are occurring as more and more listed securities are trading in decimals. Knight's new execution criteria will enable it to continue to provide clients with enhanced liquidity and price improvement in listed securities, even though trading spreads are expected to narrow and the availability of liquidity at specific price points most likely will decrease once all listed stocks are decimalized.
Specifically, Knight now offers its clients the following improved execution standards for listed securities:
Knight Securities, the Company's Nasdaq/non-Nasdaq over-the-counter (OTC) securities market maker, has also refined its execution criteria in anticipation of changing market dynamics. Specifically, Knight Securities has implemented a new trading algorithm for the Nasdaq market opening. Knight will now price improve by a fixed rate of 1/64 per share all market and marketable limit orders it receives before 9:25 a.m. ET in Nasdaq securities where the first unlocked/uncrossed National Best Bid and Offer (NBBO) has a spread greater then 1/32 (Knight's execution protocol for Nasdaq IPOs will not change).
Knight believes that this new market opening trading algorithm represents a more accurate pricing of liquidity in the Nasdaq marketplace. Knight is confident that its opening price improvement for Nasdaq orders will continue to exceed industry averages.
"Since our founding in 1995, Knight has always been a pioneer in anticipating future market trends," said Kenneth D. Pasternak, the Chief Executive Officer and President of Knight Trading Group. "We pride ourselves on this fact and therefore want to stay out in front of the changes taking place in the securities markets -- particularly those caused by the move toward decimalization. We believe that our new execution standards will allow us to continue to provide value to our clients and remain the execution destination of choice for listed and Nasdaq equity securities."
Knight is the liquidity center that offers superior execution services to its broker-dealer and institutional clients in over-the-counter (OTC) and listed equity securities, and in equity options. In so doing, Knight helps its clients meet their fiduciary obligation of obtaining best execution for the securities orders that they place on behalf of their customers. Knight also maintains an asset management business for institutional investors and high net worth individuals through Deephaven Capital Management.
Knight has the power to commit capital for market orders, and also maintains one of the largest limit order books in the OTC market. It is one of the largest destinations for stock orders placed via the Internet. Knight traded 81 billion shares in 1999, a volume behind only those posted by Nasdaq and the New York Stock Exchange (NYSE). It is a charter member of Fortune magazine's "e-50 Stock Index," an elite collection of companies shaping the Internet-based economy. Knight also is ranked by Forbes magazine as one of the 500 most profitable public companies in the U.S. Ultimately, Knight plans to enable the global trading village to trade all types of equity securities and equity options at anytime, from anywhere in the world. More information about Knight can be obtained at http://www.knighttradinggroup.com or at http://www.knight-sec.com. SOURCE Knight Trading Group, Inc.
CONTACT: Margaret Wyrwas, Vice President, Corporate Communications & Investor Relations, 201-557-6954, firstname.lastname@example.org, or Chuck Dohrenwend, Manager, Corporate Communications, 201-356-1753, email@example.com, both of Knight/