Nasdaq Not Experiencing SelecNet Delays

NEW YORK (Reuters) - The Nasdaq said on Wednesday morning that its order-routing system was functioning properly, but that the systems of its broker-dealers were slowing due to record stock trading volume, officials said.

``We have not experienced any delays in SelectNet today so far,'' said Andrew MacMillan, chief spokesman for the

National Association of Securities Dealers, the parent company of Nasdaq.

MacMillan said some NASD broker-dealer firms were having trouble with their own systems and that was slowing down the trade processing system.

The Nasdaq, the No. 2 U.S. stock market, commented on its systems after brokers suspected Wednesday morning that SelectNet, the market's main order-routing facility, was buckling under the explosive volume it has faced lately. On Tuesday, the Nasdaq composite index (^IXIC - news) plunged 574 points and then shot back up to close off only 74 points, or 1.77 percent, at 4,148. The volume that accompanied the volatility did slow down SelectNet several times after 2 p.m. on Tuesday, Nasdaq officials said.

Nasdaq posted record volume of 2.9 billion shares on Tuesday, breaking its last record of 2.23 billion that it set on March 2.

Delays in SelectNet on Tuesday afternoon forced broker-dealers to wait longer than usual to execute traders or they were forced to route them to alternative trading venues known as electronic communications networks(ECNs).

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-- Carl Jenkins (Somewherepress@aol.com), April 05, 2000