ITG's POSIT® Stock Crossing System Adds Morning Session

NEW YORK, March 21, 2001 - Investment Technology Group, Inc. (NYSE:ITG) today announced that effective March 26, 2001 the POSIT morning match times will change providing an additional match in the first hour of trading. The new match times will be 9:40, 10:00 and 10:30. The other match times will remain at their current times "on the hour" at 11:00, 12:00, 1:00, 2:00 and 3:00. All times are Eastern Standard time.

"The first 90 minutes of trading are generally the busiest of the trading day," stated Christopher J. Heckman, co-head of institutional trading and a Managing Director of ITG. "By adding a match during this period, POSIT continues to mirror the liquidity profile of the market and adjust to the changing needs of our clients."

POSIT, the world's largest equity matching system, provides a substantial pool of alternative liquidity with annual volume totaling 7.9 billion shares in 2000. The system, which matches institutional buyers and sellers anonymously, provides advanced tools for executing complex automated transactions. POSIT provides valuable savings to ITG's customers in three ways. First, since there is "zero information disclosed" by participating in the system, the "market impact" or "footprint" left by moving the market away from the order is eliminated. This is typically cited as the largest cost of trading. Second, buyers and sellers in POSIT are matched at the mid-point of the bid/offer spread, which means the client saves half the spread. Third, ITG's highly automated systems for gathering, trading and clearing client orders provides a highly efficient low cost infrastructure and a correspondingly lower explicit commission charge. A recent study concluded that POSIT saved ITG's clients $1.2 billion last year.

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity-trading services and transaction research to institutional investors and brokers, ITG services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT®, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge client site products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit

In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the Company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; fluctuations in market trading volumes; market volatility; changes in regulatory environment; risk of errors or malfunctions in our systems or technology; cash flows into or redemptions from equity funds; effects of inflation; customer trading patterns; general economic and business conditions; securities; credit and financial market conditions as well as adverse changes or volatility in interest rates. These and other risks are described in greater detail in the Company's filings with the Securities and Exchange Commission including those on forms 10-K and 10-Q.

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