SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : E*Trade (NYSE:ET)
ET 16.44+1.0%Nov 26 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Phil Tran who wrote ()3/15/2000 7:31:00 PM
From: ecommerceman   of 13953
 
from briefing.com today...

Reuters (RTRSY) 130 7/8 -7 7/8: Archipelago and the Pacific Exchange are teaming up to
form the US's first fully electronic stock exchange. We've been telling you to be on the
lookout for developments in this area and this is an important one. Archipelago is the smallest
of the ECN electronic trading networks that have been growing like wildfire since the mid
'90s. Reuters' (RTRSY) Instinet is the leading ECN and is also involved indirectly in
yesterday's Archipelago/Pacific Exchange deal. Last July, Instinet acquired a 16.4% interest
in Archipelago, joining a distinguished group of investors that include Internet broking
powerhouse E-Trade (EGRP) and investment banker Goldman Sachs (GS). We believe that
yesterday's announcement makes it likely that Instinet will seek to gain control of
Archipelago. Instinet recently broke off merger talks with Island ECN because of antitrust
concerns, concerns that would be far less of a problem with Archipelago because of its
position as the smallest of the ECNs. The deal with the Pacific Exchange solves a big problem
for Archipelago and creates a big opportunity for Instinet. Archipelago has for some time been
struggling with the SEC over its application to convert from broker regulatory status into a
stock exchange. Archipelago gains its stock exchange regulatory status instantly through its
deal with Pacific Exchange. For Instinet, acquiring control of Archipelago and its status as a
stock exchange would be a big step forward for its plan to dominate the emerging market in
electronic securities trading. Since Instinet plans to go after the retail securities market -
currently Instinet volume is dominated by Wall Street market makers - preserving Instinet's
status as a broker is critical. By acquiring Archipelago and keeping it as a separate unit,
Instinet could shift its institutional order flow to Archipelago. That would allow Instinet to
concentrate on retail growth opportunities. The potential for synergies here are tremendous for
Instinet, with the electronic stock exchange on the one hand and the retail brokerage on the
other. The combination would be so powerful that it would be bound to meet resistance from
Wall Street brokerage firms, firms like Archipelago investor Goldman Sachs. E-Trade,
however, would probably be delighted to be hooked into an Instinet/Archipelago combination.
We'll be watching developments here closely and be keeping you posted. One thing's for
sure, the Reuters story gets more and more compelling daily (see earlier story on TIBX for
more). - TJ
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News