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NexTrade Anticipates Exchange Status, Strikes Deal with Dreyfus
The NexTrade ECN has completed its formal application to become a for-profit stock exchange and is now awaiting final approval from the SEC. The proposed NexTrade Exchange is expecting to be operational by October of 2000, says Mark Yegge, CEO of NexTrade Holdings. In anticipation of gaining exchange status, NexTrade is teaming with BEA systems to build a high-volume stock trading system. NexTrade has also entered into an agreement with Dreyfus Brokerage Services to provide Dreyfus customers with market access, trade executions and technology.
The newly enhanced NexTrade Execution System will be based on BEAs WebLogic Enterprise transaction processing engine. It will take us from our current environment to a truly robust and scalable system that will be able to handle exchange-type volumes, notes Yegge. The NexTrade ECN currently operates 24 hours a day, seven days a week and expects to roll out the BEA trading system in March. BEA will also be working with NexTrade to develop a back-end processing system to handle exchange-type volume.
The Internet is about transactions, online trading is about transactions, says Joe Menard, president, e-Commerce server division of BEA Systems, And BEA plays a significant role in delivering the infrastructure for those transactions. As part of our partnership with NexTrade we are applying our consulting services and education services to architect, specify and build the system, and in a very short period of time we will come online with the system and serve customers.
NexTrades strategic partnership with Dreyfus Brokerage Services is also expected to increase the ECNs presence in the electronic trading arena. In todays markets, ECNs play a vital role in providing liquidity and the number of orders routed to and filled by the ECNs cannot be ignored, says Jeff Nachman, CEO of Dreyfus Brokerage Services. NexTrade will provide Dreyfus with a means of accessing additional liquidity that will benefit the customers. The agreement will give Dreyfus clients market access and trade executions through NexTrade, as well as the use of NexTrades Pro-Trade software. Dreyfus also has a relationship with the MarketXT ECN and various exchanges and market makers for routing order flow.