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$125 A DAY PC COULD HAVE PREVENTED SALOMON TRADING ERROR

 $125 A DAY PC COULD HAVE PREVENTED SALOMON TRADING ERROR
 NEW YORK, March 26 /PRNewswire/ -- The following was released today by Merrin Financial:
 A PC compatible computer system that costs $125 a day could have prevented Salomon Brothers Inc. from mistakenly selling $11 million of stock instead of 11 million shares of stock, causing the Dow Jones Industrial Average to fall nearly 12 points yesterday, according to news reports.
 The Merrin Financial Trading System could have automatically stopped the error before the fact in three ways. It could have prevented the mistake itself because the Merrin system eliminates the need for clerks to reenter trading orders into separate systems. The Merrin system could have flagged the trades before they were executed because a flood of orders totalling 11 million shares was an unusually large amount. Thirdly, the system could have flagged the trades before they were executed if they involved selling shares the firm did not own.
 The Merrin Financial Trading System is the first PC network-based trading order management system for Wall Street. It costs $2,500 per month in its minimum configuration, or $125 per trading day. More than 30 firms with $300-plus billion under management use Merrin systems including: GE Investment Corporation, Chancellor Capital Management, Capital Guardian Trust, JP Morgan Investment Management, Gabelli Funds, Zweig Associates, and Mutual Series Funds.
 Seth Merrin, president of Merrin Financial, Inc. and a former trader, explained that the Salomon trading error stems from the fact that "incredible as it sounds, at even the most advanced firms, order management has never been automated, despite the billions of dollars spent to computerize the actual buy and sell process. Instead, busy, high-paid portfolio managers, traders, and brokers scribble out paper buy and sell tickets for billions of dollars in trades. Then they rely upon $20,000 a year clerks to input the information into systems such as the NYSE's SuperDot, which was used to execute the trades yesterday."
 For more information about computers on Wall Street, call Seth Merrin or Scott Saber of Merrin Financial, Inc. at 212-563-3700. Or call Gary Fishman or Bob Bogard of The Hudson Stone Group at 212-226-8550.
 -0- 3/26/92
 /CONTACT: Seth Merrin or Scott Saber of Merrin Financial, 212-563-3700; or Gary Fishman or Bob Bogard of The Hudson Stone Group, 212-226-8550, for Merrin Financial/ CO: Merrin Financial, Inc. ST: New York IN: CPR SU:


SH -- NY075 -- 2064 03/26/92 15:03 EST
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Publication:PR Newswire
Date:Mar 26, 1992
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