From: firstname.lastname@example.org [mailto:email@example.com] Sent: Friday, February 14, 2003 10:36 AM To: Nazareth, Annette L. Cc: ameels@SEC.GOV; delatorrel@SEC.GOV; headm@SEC.GOV; sternb@SEC.GOV; traegerh@SEC.GOV; ColbyR@SEC.GOV; adkinsA@SEC.GOV; williamsst@SEC.GOV; preziosog@SEC.GOV; harrisl@SEC.GOV; firstname.lastname@example.org; ABlocker@nyse.com; email@example.com; firstname.lastname@example.org; email@example.com Subject: Liquidity Quote: "Take It Outside, Boys." See my email below to Bloomberg/Tradebook counsel Roger Blanc for the state of play. (In the second sentence, that's Kevin Foley and Kim Bang of Tradebook and Tom Secunda of Bloomberg.) Rich Bernard NYSE 212 656 2222
Richard P. Bernard To: "Blanc, Roger"
cc: 02/14/03 09:54 Subject: Bloomberg/Tradebook AM Thanks for lunch and the Ketchum letter. As you may know from taking to Kevin, Kim or Tom, we have not yet found a way to resolve the problem that arises from Bloomberg's central vending of "self-configuration" software solutions without creating a risk for us that another "Bloomberg" or "Schwab" will pop up and take a run at the"third party" to our producer/distributor negotiation -- the folks at 450 Fifth. (Bob Britz, Ron Jordan, Tom Haley and I spent another hour after your guys left kicking the problem around, and I see that Ron has left me an email laying out the alternatives.) I do think your guys now understand why no rational trader would want to put our "where's the beef" Liquidity Quote in among the "What's the inside [quote]" autocrap dust bin. (We noted that, against our 6 cents, the average spreads between the periphery markets' "best"-priced quotes range from 22 cents to 78 cents.) Your guys promised to "check us out" on that issue. But they fear that customers will want that useless commingling if Reuters is pushing [via its commingling distributed software solutions] it in order to get a competitive leg up over Bloomberg. Life teaches that real experience is more likely to provide the best right answer, but your guys are afraid that we won't detect the manifestation of their fears early enough to prevent their loss of competitive position to Reuters. They were unimpressed by my suggestion that we could send in the Iraq arms inspectors. (I should confess that I am 1/4 Belgium and 1/4 French!) I did say to them, "Trust me, I'm a lawyer." Do you think it would have helped if I had worn my "Honest Lawyer" baseball cap? Go well. Rich Bernard NYSE 212 656 2222