Crossing Network Is Simply a Stock Trading Apparatus, Not a Secret Wall Street Society
I read with interest Martin Mayer’s Viewpoint (“Is the SEC Surrendering Its Birthright?” Nov. 26) but there are some points of detail that should be corrected.
Mayer implies that the Crossing Network operates largely “behind the scenes,” unknown even to Wall Street professionals. The Crossing Network has been actively marketed and widely publicized during the three years since its introduction and is well known to a broad spectrum of the securities industry.
Mayer also states that Crossing Network trades “are not reported anywhere.” All Crossing Network trades are reported daily to the National Assn. of Securities Dealers. Users of the Crossing Network may also request that Instinet report their Crossing Network transactions to the International Stock Exchange in London.
Anonymity, in the context of the Crossing Network, means only that a user does not know the identity of the contra side of a trade. The benefit to the user is that because all orders are entered and traded anonymously at closing prices, there is no market impact. No market impact combined with low commissions results in better performance for Crossing Network participants.
The Crossing Network does not attempt to shut out broker/dealers in favor of institutional investors. Several of the largest broker/dealers are regular Crossing Network participants. Instinet and its Crossing Network provide a neutral, level playing field for all professional equity traders using its electronic access systems.
Instinet, a registered broker/dealer, is a member of the NASD, the American Stock Exchange, the London International Stock Exchange and other regional stock exchanges, and is subject to the same regulations and surveillance that all members are.
BOB A. CROOKE
The writer is director of media relations for Reuters, which owns the Crossing Network.