|JUNE 21, 1999|
|Knight/Trimark Group CEO Named New Jersey Ernst & Young Emerging Entrepreneur of the Year-R|
His Ability to Create & Grow Business
Kenneth D. Pasternak, president and chief executive officer of
Jersey City-based Knight/Trimark Group, Inc. (Nasdaq: NITE), was
selected as the 1999 New Jersey Ernst & Young Entrepreneur of the
Year(R) in the Emerging Entrepreneur of the Year category. Mr.
Pasternak was honored by an independent panel of local business and
academic leaders for his ability to create and grow Knight/Trimark -
the unseen participant behind the explosive growth of on-line
"Ken Pasternak epitomizes what it means to be an entrepreneur,"
commented Bernie Leone, New Jersey director of entrepreneurial
services and partner at Ernst & Young LLP. "He saw the widespread
popularity of on-line investing on the horizon and created a low-cost,
technology-driven equities market maker capable of keeping up with the
ever increasing volume of trading."
In the first quarter of 1999, Knight/Trimark executed on average
306,000 transactions per day (between $12 billion and $18 billion in
transactions per day), the equivalent of one-third of the daily volume
transacted on the New York Stock Exchange (NYSE). On April 19, the
Company handled 520,000 trades, a record and about a quarter of the
Wall Street total for the day.
The increased trade volumes fueled by the growth of on-line
trading and increased market share has produced strong financial
results for Knight/Trimark. Revenues for the first quarter ending
March 31, 1999 rose 188 percent to $182.7 million, and net income
increased 344% to 37.4 million compared to the first quarter of 1998.
Since going public in July 1998, Knight/Trimark's market
capitalization has grown from $750 million to approximately $5.7
billion, and its stock continues to be one of the best performing
listings on Nasdaq. In fact, Investor's Business Daily has selected
Knight/Trimark as Wall Street's best performing stock for two
consecutive quarters this past year.
This exceptional financial growth has been fueled by the
corporate culture that Mr. Pasternak has forged at Knight/Trimark.
Since commencing operations in 1995, the Company has grown to over 540
employees, with 420 employees at its Jersey City headquarters. Mr.
Pasternak credits the Company's extensive training and incentive
programs for its ability to attract and retain top talent. These
initiatives include the firm's stock ownership plan that gives
Knight/Trimark employees a vested interest in the success of the
"My selection as the New Jersey Ernst & Young Emerging
Entrepreneur of the Year is further proof that the Knight/Trimark
business model is a successful one," said Mr. Pasternak. "With a
commitment in 1999 to invest more than $20 million in new technology,
a new Internet-based trading product and the continued growth of
on-line investing, our future looks bright."
Knight/Trimark Group is the leading market maker in both
Nasdaq/OTC securities and the over-the-counter market for NYSE- and
American Stock Exchange (AMEX)-listed equity securities - the Third
Market. On account of its cutting-edge technology and customer support
services, Knight/Trimark has the capacity to handle 1.2 million trades
per day. The four-year-old Company, which is currently the nation's
largest destination for on-line trade executions, this year became one
of the largest businesses in New Jersey.
The Ernst & Young Entrepreneur of the Year Program began in 1986
and is the preeminent awards program recognizing and honoring the
achievements of successful entrepreneurs around the world. The New
Jersey Entrepreneur of the Year Program, started in 1988, is one of 47
regional awards programs that take place across the United States. In
addition, there are 18 regions in Canada, Europe, Latin America, the
Caribbean and Africa that celebrate the world's finest entrepreneurs.
An independent panel of judges, facilitated by the Kauffman Center for
Entrepreneurial Leadership at the Ewing Marion Kauffman Foundation,
will select the national award recipients from among the regional
award winners. One of these honorees will be chosen as the National
Ernst & Young Entrepreneur of the Year.
Knight/Trimark, as a market maker, performs the essential task of
buying shares when retail or institutional customers want to sell and
selling shares when they want to buy. Orders are sent via computer or
phone to Knight/Trimark - all of which are processed in a matching
environment where incoming orders are compared against the Company's
large limit order book. If Knight/Trimark holds a matching order
(e.g., sell order for a buy order and vice versa) a trade is made.
If no match is found, Knight/Trimark guarantees liquidity by
committing its own capital and trading on a proprietary basis. For
example, if a customer wants to buy 1,000 shares of XYZ stock at $100
apiece, and only 100 shares are for sale at that price, a
Knight/Trimark trader will fill the order by selling the remaining 900
shares out of the Company's inventory.
Knight/Trimark generates much of its profit through volume of
trading - the larger the volume, the greater the opportunity for net
trading revenue. The firm maintains a market making capability in all
publicly traded U.S. securities (from IBM, a NYSE stock, to Microsoft,
a Nasdaq stock) and can commit capital in all of them. In fact, it has
in excess of $200 million in inventories to facilitate the guaranteed
liquidity of all executed transactions.
Copies of this release and other information about Knight/Trimark
Group can be obtained via the Internet at www.knight-sec.com.
CONTACT: Edelman Public Relations Chuck Dohrenwend/Russell Dubner 212-704-8102/4538 KEYWORD: NEW JERSEY INDUSTRY KEYWORD: BANKING