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By that time, computerized convertible bond trading programs
were readily available, and trading in convertible securities
came to be conducted in great measure electronically. That
diminished petitioner’s prior competitive advantage from Mr.
Wechsler’s expertise and reputation as a market maker in hundreds
of convertible securities and the longstanding business
relationships that Mr. Wechsler had with various individuals in
the financial sector. Price competition in a number of
convertible securities increased among various market makers, and
typically how good a price a market maker quoted for those
securities became the controlling factor for potential customers
in selecting a particular market maker for a transaction. Also,
generally, trades came to involve larger dollar amounts,
resulting in larger capital requirements for market makers in
convertible securities. From 1990 through about 1997, petitioner
listed and traded approximately 350 convertible securities.
Thereafter, petitioner sharply reduced its participation and role
as a market maker in the convertible securities market while
continuing to act as a market maker in 30 to 50 convertible
securities and perhaps a half-dozen stocks.
Duties and Work Performed by Certain Officers and Individuals
Mr. Wechsler
Since 1988, Mr. Wechsler has been petitioner’s principal
manager and has made all major financial decisions concerning
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Last modified: May 25, 2011