Three-Month Transaction Cost Study Shows Pipeline Delivers 5 Cents per Share Advantage Over Universe of Brokers

NEW YORK, NY–(EMWNews – July 31, 2008) – Elkins/McSherry, a leading provider of

customized trade execution analyses, recently completed a three-month study

of the performance of Pipeline’s block execution system. The system

combines The Block Market™ and Pipeline’s new Algorithm Switching

Engine™. The study showed Pipeline’s customers saved 5 cents in total

cost as compared to the average of the Elkins McSherry universe of brokers.

The Algorithm Switching Engine represents a dramatic enhancement to

Pipeline’s original block trading capabilities. It incorporates proprietary

predictive analytics to manage access to over 100 third-party algorithms,

harvesting liquidity from over 30 dark pools and all the displayed markets.

The combination of the Switching Engine and The Block Market enables large

institutional customers to completely execute block orders, achieving best

execution by minimizing the amount of information leaked to predators.

“These implementation shortfall results are especially significant because

they reflect not only the zero-impact savings from blocks executed

immediately upon entry, but also the savings achieved by our community as

they use the Switching Engine to drive block orders to completion through

dark pools and other markets. Our block execution system is enabling

Pipeline traders to significantly outperform their peers, even on orders

that aren’t lucky enough to execute when entered,” said Fred Federspiel,

president of Pipeline.

The Elkins/McSherry result is independent of any pre-trade market impact

model, and instead compares the actual results of orders executed by

institutional traders. The savings reported include both the effect of

Pipeline’s $0.02 commission, and the reduction in observed implementation

shortfall.

About Pipeline

Pipeline partners with block traders to optimize the execution of giant

orders while denying statistical arbitrageurs the information they’d need

to take advantage of institutional orders. Pipeline is the only block

execution system that combines the high probability of block liquidity with

the unmatched performance of predictive switching between best of breed

algorithms. It was built from the ground up to deliver impact-free block

liquidity in the face of increasingly sophisticated predators. Pipeline is

headquartered in New York with offices in Boston, Chicago, and San

Francisco. For more information, visit http://www.pipelinetrading.com.

About Elkins/McSherry

Elkins/McSherry, a leader in the global financial consulting industry,

provides customized trade execution analysis reports that are used as an

independent monitoring and management tool. The Elkins/McSherry Trading

Costs Analysis gives institutional investors a complete evaluation of

trading cost for both equity and fixed income securities. Its process is

designed to create a comprehensive, 360-degree examination of trading

costs.