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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Francis Muir who wrote (7570)	7/13/1999 5:25:00 PM
From: Tae Spam Kim	Read Replies (1) \| Respond to of 13953

ETrade Buys TIR Holdings - 5:08 PM EST - TK ETrade (EGRP), the most recognized online broker, announced today it will acquire TIR Holdings for $122 million in stock. Analysts say that the acquisition would allow the company to easily setup up an international operational and regulatory infrastructure for the future global stock trading/exchange. The CEO of ETrade, Chris Cosakos, emphasized that building a global 24 hr / 7 days a week trading infrastructure is essential to ETrade's financial services strategy. ETrade Group, the second-largest Internet broker, said it's buying TIR Holdings, which executes trades for institutions in more than 35 countries, for $122 million in stock. "This enables them to handle currency translation seamlessly across markets and provides the operational and regulatory infrastructure for global trading," said Bill Burnham, analyst with Credit Suisse First Boston. "It says they're seriously committed to this global vision." Internet brokerages are seeking to expand outside of the United States in case stock trading in their home market slows. ETrade Japan, ETrade's joint venture in Japan with Softbank, will slash commissions 80 to 90 percent and issue stock to the public in two years, Softbank said. ETrade said Dublin-based TIR will help it execute trades for international clients. TIR, with annual revenue of $100 million in the year ended April 30, has 600 institutional clients that use the firm to execute stock and bond trades. "I don't think this is any indication of [ETrade] becoming institutional," Burnham said. "This is a means to an end." TIR "fills in some of the gaps" of international stock trade execution and clearing services, help that's now provided domestically by Knight/Trimark Group, said Burnham. ETrade will keep TIR's current management in place because it adds to ETrade's market-making expertise, he said. "Building the infrastructure for a global 24x7 business is central to ETrade's financial services strategy," said Christos M. Cotsakos, chairman and chief executive. "ETrade plans to deploy a highly automated, cross-border trading network by combining TIR's existing trading network, international expertise, and research operations with ETrade's technology leadership and growing global brand." - News.com