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Future of Electronic Connectivity: In the Aftermath of Regulation NMS

Future of Electronic Connectivity: In the Aftermath of Regulation NMS

As a result of the passage of Regulation NMS, the role of electronic connectivity has taken center stage, requiring all major market participants to carefully evaluate reliable and speedy connectivity options as a competitive necessity.

By Sang Lee, Sang Lee

Boston, MA, July 27, 2005 – According to a new report by Aite Group, LLC, in today's heightened regulatory environment, Regulation NMS has virtually cemented the importance of electronic trading and with it, elevated the status of electronic connectivity in the marketplace.

This report examines the details of Regulation NMS and analyzes its potential impact on key market participants and overall market structure. In particular, this report focuses on the impact of Reg NMS on the connectivity market, identifies new opportunities for providers of electronic connectivity, and lays out various options for market participants in the post-Reg NMS world.

According to Sang Lee, Managing Partner of Aite Group, and author of the report, "In the post-Reg NMS reality, access to secure electronic connectivity with low latency will be seen as a vital part of every firm's trading strategy." Lee also adds, "In today's financial services IT market characterized by tight budgets and lack of internal resources, cost-effective and reliable options, such as the shared extranet approach, are becoming increasingly popular."

This is a 28-page Impact Report. Clients of Aite Group's Institutional Securities and Wealth Management services can download the report.