One Step Ahead

[Bo14172]

Zen, venture capital is certainly an option
and likely involved in last weeks meetings.

With the very high daily volume in the billions, and sometimes over 10 billion per day, I would think the opportunity for a capital investment company would present itself daily, without the need for dilution up to 800 billion, but that's only my opinion. Your point about obtaining large institution is a very valid one, and I for one will be exciting to know more about this as it plays out.

I looked at the Citibank PR of August 9th, and I'm not seeing where NITE will not be trading equities (stocks) anymore. In fact the pr seems cogent that NITE will continue equity trading.
Harking back to my days as a finance major at Penn State (no football comments please..lol), stock derivatives involved stock options (put & calls), and commodities trading. A derivative is a security or contract which serves as an instrument only but has not value on it's own. The value lies in the underlying security or commodity or index which it involves. Again, this would include things like options and futures. OTCBB or PinkSheets wouldn't fall under this definition. I don't think I'm reading the pr wrong, but I am open to discussion on it. Please note I'm not saying you are inferring NITE derivatives trading involves OTCBB or Pinksheets, I'm just trying to keep the distinction clear. Further, I would hope such linkage and resolution does not fall upon the back of CMKX shareholders.

http://www.citigroup.com/citigroup/press/2004/040809a.htm

FOR IMMEDIATE RELEASE
Citigroup Inc. (NYSE: C)
August 09, 2004

Citigroup to Acquire Derivative Markets Business of Knight Trading Group


Leading Provider of Options Execution to Become Part of Equities Division of Citigroup's Global Corporate and Investment Banking Group

Citigroup Executes on Plans to Grow its Derivatives Business

New York, New York and Jersey City, New Jersey — Citigroup (NYSE: C) and Knight Trading Group (NASDAQ: NITE) today announced that they have entered into a definitive agreement under which Citigroup, Inc. will acquire the assets and operations that comprise the Derivatives Markets business of Knight Trading Group. The purchase price was $225 million in cash. The transaction is expected to close in the fourth quarter of 2004 and is subject to customary closing conditions, including antitrust and regulatory approvals.

Acquiring Knight's Derivatives Markets business provides Citigroup with electronic and floor-based market making capabilities in listed equity and fixed income options. Knight is a leading provider of options execution in the industry and is a specialist in approximately 500 options classes, covering nearly three-fourths of all equity option order flow on most U.S. options exchanges.

"The acquisition of Knight's options business is consistent with our efforts to expand our derivatives market making capabilities, as evidenced by our recent appointment as an electronic specialist (E-DPM) on the Chicago Board of Options Exchange," said James Forese, Managing Director and head of Global Equities at Citigroup. "This transaction will add significant scale to our U.S. equities business and provide Citigroup with top-tier order-routing and market making capabilities in our growing derivatives business."

Thomas M. Joyce, Chief Executive Officer and President of Knight Trading Group, said, "Knight made significant improvements to its options business since it was acquired in 2000, adapting to the dynamic options market by increasing efficiencies and introducing new products." Mr. Joyce continued, "Knight is now a significant market maker in the U.S. with profitable operations, a strong brand and industry-leading technology and trading expertise. Ultimately, the hard work of Knight's employees transformed our options business into the attractive asset for Citigroup that it is today."

Good or bad my friend, this has sure been a ride not for the faint of heart.

Zen has the popcorn. I'll make the soda run. What's everybody else bringin'? The show is just getting good.

Be well,

Bo