TD Waterhouse to Invest in RediBook Electronic Trading System Instead Of Island
New York, Oct. 12 (Bloomberg) -- TD Waterhouse Group Inc.,
the fourth-largest Internet brokerage, signed a letter of intent
to invest in RediBook, the electronic trading network founded by
the trading firm Spear, Leeds & Kellogg.
TD Waterhouse joins Charles Schwab Corp., Fidelity
Investments and Donaldson, Lufkin & Jenrette Inc. -- all of which
have brokerage units -- as a part-owner of Redibook. Terms of TD
Waterhouse's investment weren't disclosed.
''We wanted to partner with high-profile players in retail
brokerage, institutional and market-making activities,'' said
Frank J. Petrilli, president and chief executive of New York-
based TD Waterhouse. ''This group can gather enormous amounts of
order flow.''
TD Waterhouse plans to offer after-hours trading from 4:30
p.m. to 7:00 p.m. through RediBook. It said it will start sending
orders through RediBook during regular trading hours -- 9:30 a.m.
to 4 p.m. -- as early as next month.
RediBook accounted for 8 percent of electronic trading
network volume in June, according to a recent report by Putnam,
Lovell, De Guardiola & Thornton Inc. Its average daily volume is
27 million shares.
TD Waterhouse said it was unable to finalize a partnership
it had been negotiating with Island ECN, another of the nine
electronic trading networks, which match buy and sell orders of
mostly Nasdaq stocks.
Canada's Toronto-Dominion Bank, which acquired TD Waterhouse
in 1996, sold 11 percent of the online brokerage to the public in
June. |
