July 22, 1999 07:48
DLJdirect SFG Securities Inc. -www.dljdirect-sfg.co.jp- Announces
New Commission Schedule for Planned Deregulation of Stock
Brokerage Commission Rates
JERSEY CITY, N.J.--(BUSINESS WIRE)--July 22, 1999--DLJdirect SFG Securities Inc. ("DLJdirect SFG"), a joint venture between DLJdirect Inc. (NYSE: DIR) and The Sumitomo Financial Group,
announced today it will introduce a new commission schedule to take effect upon the deregulation of Japanese stock brokerage commission rates, planned for October 1999.
DLJdirect SFG will substantially reduce the commission rate based on cost efficiencies enjoyed by online brokerages in executing buy and sell orders. The relatively low commission schedule is based on the
U.S. standard which is easy to understand and popular with self-directed individual investors. Under the new schedule (shown below), the commission for executing a market order over the Internet is 1,900 yen (US$16).
"October 1 will introduce significant changes to the retail marketplace, with tremendous benefits for individual investors," said Blake Darcy, CEO of DLJdirect and Chairman of DLJdirect SFG Securities Inc. "As the leader of online brokerage services in Japan, our pricing policy will enable our customers to access quality products, state-of-the-art technology, and premium services at affordable prices."
New DLJdirect SFG Commission Schedule
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Type of order Commission
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Internet trade Market Order 1,900 yen (US$16)
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Limit Order 2,500 yen (US$21)
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Telephone trade Market Order 2,900 yen (US$25)
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Limit Order 3,500 yen (US$30)
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* Exchange rate, 118.28 yen per US dollar, as of close of business 07/21/99.
The schedule shown above is applicable to trades in amounts up to 10 million yen (US$85,000). For trades exceeding that amount, DLJdirect SFG will charge 50 yen (US$0.42) per each additional million yen (US$8,500) traded.
DLJdirect SFG Securities Inc. was established as a joint venture between DLJdirect Inc., which owns 50 percent, and Sumitomo Bank Ltd., which owns 20 percent of the entity. The remaining 30 percent
shareholder stake is divided among Sumitomo Marine & Fire, Sumitomo Corp., Sumitomo Trust & Banking, Sumitomo Life, Daiwa Securities Inc. and Internet Initiative Japan Inc. DLJdirect SFG Securities offers securities trading, investment trust and money market funds to Japanese investors.
A subsidiary of Donaldson, Lufkin & Jenrette, DLJdirect is one of America's premier online brokerage firms. DLJdirect has more than 650,000 customer accounts with over $13.3 billion in assets. A series of common stock that tracks the performance of DLJdirect trades on the New York Stock Exchange under the ticker symbol DIR. For more information on DLJdirect, refer to the company's world wide web site at dljdirect.com.
Donaldson, Lufkin & Jenrette is a leading integrated investment and merchant bank serving institutional, corporate, government and individual clients. DLJ's businesses include securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research; venture capital; correspondent brokerage services; online, interactive brokerage services; and asset management. Founded in 1959 and headquartered in New York City, DLJ employs approximately 9,100 people worldwide and maintains offices in 14 cities in the United States and 11 cities in Europe, Latin America
and Asia. The company has two classes of common stock trading on the New York Stock Exchange. Shares trading under the ticker symbol DLJ represent Donaldson, Lufkin & Jenrette, Inc. Shares trading under the ticker symbol DIR track the performance of DLJdirect, Inc., its online brokerage business. For more information on Donaldson, Lufkin & Jenrette, refer to the company's world wide web site at dlj.com. The firm's world headquarters are located at 277 Park Avenue, New York, NY 10172; telephone number (212) 892-3000.
CONTACT: DLJdirect Inc.
Linda Finnerty
lfinnerty@dljdirect.com
201/413-3187
or
Edelman Worldwide
Jonathan Mairs
jonathan_mairs@edelman.com
212/704-4504
or
Investors:
Donaldson, Lufkin & Jenrette
Kevin Zuccala
212/892-4693 |
