From: []
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;;;;;
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
212 656 2222

      Richard P.                                                                           
      Bernard              To: "Blanc, Roger"                          
      02/14/03 09:54       Subject:  Bloomberg/Tradebook                                   

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

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
212 656 2222