Financial Insights Benchmarks Equity Electronic Trading Services of Top Sell-Side Firms.

FRAMINGHAM, Mass. -- Global independent research and advisory firm Financial Insights, an IDC company, unveiled findings from its latest study on sell-side Electronic Trading Services at the Securities Industry & Financial Markets Association Technology Management Conference (SIFMA) in New York on June 21, 2007.

During the keynote conference session Julio Gomez, global head of research, highlighted how bulge-bracket firms are differentiating in the five key areas of electronic trading:

* Direct Market Access (DMA)

* Algorithms

* Access to "Dark Pools"

* Transaction Cost Analysis (TCA)

* Execution Management Systems (EMS)

The study examined the features, functionality, ease of use and extensiveness of offerings that the buy-side community is increasingly demanding from the sell-side brokerage firms. The results of the benchmark reveal the top 5 ETS firms as:

1- Morgan Stanley

2- Goldman Sachs

3- Credit Suisse

4- Merrill Lynch

5- Lehman Brothers

Algorithmic trading, and electronic execution of "low-touch" equity orders, continue to accelerate. Buy-side traders utilize more liquidity venues and aggressively push to increase automation and lower trading costs. Responding to these demands, sell-sides firms are providing their clients with more advanced functionality and customizable features bundled into smarter trading tools in an effort to capture order flow and maintain their relevance with the buy-side on this type of business.

"Our findings reveal significant differentiation opportunities in Electronic Trading Services," said Julio Gomez, global head of research, Financial Insights. "The leaders in ETS are not comfortable calling these services commodities. Whether it's customizability of algorithms, connectivity to large numbers of liquidity pools, or additional asset class trading capabilities, firms are expanding their offerings to gain competitive advantage and strengthen client relationships."

The full results of this benchmark study on the top sell-side firms and how they rank in the five key areas of electronic trading examined by Financial Insights is available in the subsequent research report.

To set up a briefing with Financial Insights or to obtain a copy of the full report as a qualified member of the media, please contact Deborah Stark, 508-935-4318 or email [e-mail]

For more information on purchasing the report, contact [e-mail]

About Financial Insights, an IDC company

Financial Insights is a premier global provider of extensive ongoing research and consulting services to the financial sector for users and providers of financial industry technology. Financial Insights helps business executives, the investment community, and IT professionals make informed decisions on the business strategy and the technologies that support financial services. Financial Insights has local practices in Asia Pacific, Europe, Latin America and Canada to provide global, regional and local expertise to banks, insurance companies, asset management firms, securities brokerages, and diversified financial institutions. Financial Insights, an IDC company, is headquartered in Framingham, Massachusetts, USA. IDC is a subsidiary of IDG, the world's leading IT media, research, and event company. Visit www.financial-insights.com for more information.