Van der Moolen Expects Net Income of Approximately EUR 5.5 Million in the Third Quarter of 2003.Business Editors AMSTERDAM, The Netherlands--(BUSINESS WIRE)--Oct. 16, 2003 Van der Moolen Van der Moolen is a Dutch equity trading firm, with its headquarters located in Amsterdam. They are mainly active in the United States and in Europe, particularly in the Netherlands, France, Germany, Switzerland and the United Kingdom. , specialist, market maker and proprietary trader In a financial institution, a proprietary trader ( also known as a securities trader ) is a trader who trades securities on the account of the institution he/she works for, not for client-based business. on important U.S. and European equity, option and fixed income markets, announced that it expects to realize net income from ordinary activities of about EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 5.5 million (EUR 0.13 per ordinary share) in the third quarter of 2003. The anticipated effective tax rate for the third quarter is 20%. Recent developments Van der Moolen announced that it has received further information from the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , Inc. ("NYSE NYSE See: New York Stock Exchange ") about the ongoing specialist investigation as it relates to its majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , Van der Moolen Specialists USA ("VDM-USA"). The Enforcement Division of the NYSE contends that, for the three-year period ended December 31, 2002, VDM-USA may have disadvantaged customers who entered orders via the NYSE's Designated Order Turnaround System Designated order turnaround system (DOT) Computerized order entry system that allows orders to buy or sell large baskets of stock to be transmitted immediately to the specialist on the exchange, where execution will occur quickly, depending on the basket size. ("DOT") through alleged "interpositioning," resulting in losses to customers of approximately $10 million. In the case of such alleged "interpositioning," the specialist is believed to have traded unnecessarily as dealer with DOT orders on one side of the market, and then immediately traded with DOT orders on the opposite side, at a profit to the specialist. In a meeting with the NYSE Enforcement Division regarding the well-publicized specialist inquiry, VDM-USA learned for the first time that, for the same three-year period, a different type of incorrectly sequenced executions allegedly made by VDM-USA specialists may have resulted in additional losses to customers of approximately $25 million. In these alleged "one-sided trading" cases, the specialist is believed to have traded unnecessarily, as dealer, on one side of the market only, at a price level where one or more DOT orders could have traded instead. The NYSE has indicated that the amounts involved in each case are preliminary and subject to revision. The NYSE has further indicated that it intends to initiate disciplinary proceedings against VDM-USA, seeking restitution of the amounts by which customers were allegedly disadvantaged, as well as fines and other remedies. VDM-USA has questioned the accuracy of the NYSE's data, and has repeatedly requested access to the underlying datastream for these trades. The NYSE has declined this request so far, but is currently taking the matter under consideration. VDM-USA has also requested access to information on current DOT transactions to prevent any potential occurrences of this kind in the future, but has likewise not been provided with that information so far. For further information please contact Investor Relations/Corporate Communications, telephone: +31 (0)20 535 6789 For more information about Van der Moolen, please visit www.vandermoolen.com. As previously announced, we will release a detailed report on the third quarter of 2003 in accordance with Dutch accounting practice, supplemented with a reconciliation to U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , on November 6, 2003. On Thursday, November 6, 2003, at 16:00 CET CET abbr. Central European Time CET Central European Time CET n abbr (= Central European Time) → hora de Europa central CET abbr , Van der Moolen will host a conference call for analysts. This will be webcast over www.vandermoolen.com . Invitations to participants will be distributed shortly. Van der Moolen trades on the leading U.S. and European equity, option and fixed income exchanges. The group trades in open outcry Open Outcry A method of trading on a commodity exchange by making verbal bids and offers in the trading pits. Notes: A contract is made if one trader cries out that he wants to sell at a certain price and then another trader yells out that he will buy at that same price. and electronic markets in several time zones. On the NYSE, Van der Moolen currently has a market share of more than 10% of transaction volume for which it acts as specialist. Van der Moolen's traders worldwide execute an average of 75,000 trades a day. Turnover and price volatility are the most important factors influencing its results. Van der Moolen's shares are listed on Euronext Amsterdam (Reuters ticker VDMN.AS; Bloomberg ticker VDMN NA). American Depositary Receipts American Depositary Receipt (ADR) Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. (ADRs) representing Van der Moolen shares are listed on the NYSE (ticker: VDM See Virtual DOS Machine and CGM. 1. VDM - Vienna Definition Method 2. VDM - Virtual Device Metafile. ). Disclaimer: Certain statements contained in this press release constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ". These statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect management's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements, and are referred to the documents filed by the Company with the U.S. Securities and Exchange Commission, specifically the Company's most recent filing on Form 20-F, which identify important risk factors that could cause actual results to differ. The Company disclaims any obligation to update its view of such risks and uncertainties or to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law. |
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