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He is an associate in institutional trading at Salomon Smith Barney in New York.
Institutional trading accounts for some 90percentt of the daily trading on the major exchanges.
He is building up Knight's institutional trading business, which is more profitable than trading for individual investors.
"I think institutional trading has been the driving force of what has been going on in the market," he said.
"The McDonald's warning is a cause of concern," said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray.
Liquidnet is a private, virtual enclave for institutional trading, hidden from the eyes of smaller traders on popular exchanges like Nasdaq, the New York Stock Exchange and Instinet.
His comments seemed to rule out the possibility that Schwab would acquire Jefferies & Company, an institutional trading firm that The Wall Street Journal reported Schwab was considering.
Yet the average size of an institutional order today is 44,660 shares, according to the Plexus Group, a firm that tracks institutional trading costs.
"You get these fights with the bulls and the bears," said James Volk, co-director of institutional trading at D. A. Davidson & Company.
"The upside momentum in the market has definitely returned," said Keith Keenan, vice president for institutional trading at Wall Street Access.
Dow Jones has been attempting to compete with Bloomberg in the lucrative business of supplying institutional trading terminals to Wall Street and City workers.
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