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Article: CSE snuffs out Match system; low volume put trading operation in red. (Chicago Stock Exchange Inc.'s electronic trading system)
- Article from:
- Crain's Chicago Business
- Article date:
- February 5, 1996
- Author:
CopyrightCOPYRIGHT 1996 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Board members at the Chicago Stock Exchange pulled the plug Friday on their once-heralded Chicago Match electronic trading system and approved a 1996 budget that critics called plump and unrealistic.
The Match, an institutional trading system aimed at capturing off-exchange stock trading, has racked up nearly $6 million in losses since its January 1995 launch, while attracting less than 10% of the volume needed to break even.
"We discovered that the expense and time required to achieve market penetration is just too long," says CEO Robert Forney. "If we had looked at the costs as we know them today, I doubt seriously that we would have gone ahead with the ...