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

To: Spytrdr who wrote (7789)	7/26/1999 10:22:00 PM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

INTERVIEW-Waterhouse exec got an ETrade bear hug By Jack Reerink Monday July 26, 7:18 pm Eastern Time NEW YORK, July 26 (Reuters) - It took Frank Petrilli one weekend to decide to quit as president of Internet brokerage TD Waterhouse Group Inc. (NYSE:TWE - news) and jump ship to rival ETrade Group Inc. (Nasdaq:EGRP - news). ETrade's bright prospects, the unbridled enthusiasm of its chief executive, Christos Cotsakos and an unspecified stock option package swayed him, Petrilli said in a telephone interview on Monday. ``Christos put a bear hug on me on Friday,' Petrilli said. ``It happened very quickly.' Cotsakos, who built ETrade from a small discount broker into the No. 2 Web broker, has earned a reputation as a fast deal maker. The executive late May invited online bank Telebanc Financial Corp's (Nasdaq:TBFC - news) Chief Executive Mitchell Caplan to stop by for lunch. A week later, ETrade announced it would buy Telebanc for $1.8 billion in stock. Petrilli, 48, will help ETrade digest that acquisition as well as work to expand the Menlo Park, Calif-based broker's trade-processing and asset-management operations, he said. Petrilli's official title is president of ETrade Securities, a position held previously by the group's current president, Kathy Levinson. ``I've now joined forces with the leader in our industry, the firm that is really reinventing the industry,' Petrilli said. ``They have been investing in a powerful brand name and making some very aggressive acquisitions.' Petrilli, a former American Express Co (NYSE:AXP - news) executive, joined Waterhouse Investors Services in 1995. When the broker's parent company, Canada's Toronto-Dominion Bank (Toronto:TD.TO - news) spun off part of Waterhouse in a stock offering last month, Toronto-Dominion veteran executive Stephen McDonald became Waterhouse's chief executive. In response to a question, Petrilli denied he left Waterhouse, which is the No.3 Web brokerage, because he did not get the top slot. ``I wasn't looking for a job, so that should answer that question,' Petrilli said. ``If you're unhappy, you're looking for a job, right?' Petrilli declined to say what he had left on the table by quitting Waterhouse just after the initial public stock offering (IPO), nor did he detail his stock compensation at ETrade. ``I've taken the position that I know that ETrade is going to be wildly successful, and having an equity position through options satisfied me,' Petrilli said. ``I'm putting my money where my mouth is.' TD Waterhouse shares on Monday closed at a low of $18.25, down 13 percent on the day and down almost one quarter from their IPO price. ETrade's stock lost 5 percent, or $1.75, to $30.25.

To: Spytrdr who wrote (7789)	7/26/1999 11:42:00 PM
From: ecommerceman	Read Replies (1) \| Respond to of 13953

Spytrader, thanks for your excellent due diligence, once again. A great and interesting article, and hopefully one which will quiet the fears of our more nervous longs...

To: Spytrdr who wrote (7789)	7/27/1999 9:19:00 AM
From: Spytrdr	Read Replies (3) \| Respond to of 13953

Archipelago Announces Investment by Instinet; Archipelago will Seek SEC Approval to Register as Stock Exchange Tuesday July 27, 8:34 am Eastern Time Company Press Release SOURCE: Instinet Corporation CHICAGO, July 27 /PRNewswire/ -- Archipelago, a leading U.S.-based electronic communications network (ECN) for trading Nasdaq stocks announced today that Instinet will acquire a 16.4 percent interest in Archipelago. Financial details of the investment were not disclosed. Archipelago also announced that it plans to seek SEC approval to establish itself as a registered, self-regulating stock exchange. Instinet, a wholly owned subsidiary of Reuters Group PLC (Nasdaq: RTRSY - news) and the world's largest agency broker, joins a distinguished group of investors in Archipelago. Other investors include ETRADE Group, Inc., (Nasdaq: EGRP - news), Goldman Sachs Group Inc., (NYSE: GS - news), J.P. Morgan (NYSE: JPM - news) and American Century Companies. Gerald Putnam, CEO of Archipelago said: ``The combination of Instinet, ETRADE, Goldman Sachs, J.P. Morgan and American Century creates a powerful group to support our efforts to establish a registered electronic trading exchange that addresses the needs of institutions and individuals alike for fast, fair execution of trades. It also demonstrates confidence in Archipelago's open architecture and state-of-the-art technology.' Douglas M. Atkin, president and CEO of Instinet said: ``Advancing technology, regulatory shifts and new business models are creating dramatic changes in the way securities are traded around the world. Instinet strongly believes that efficient market structures are critical in bringing value to all investors and issuers.' He added, ``Archipelago's effort to create the new all-electronic exchange is an important move in that direction.' In 1997, the SEC created a regulatory platform for the role of ECN capabilities in the national marketplace. In 1998, the SEC passed regulations permitting the creation of all-electronic stock exchanges. On Archipelago's bid to become an exchange, Putnam said: ``Archipelago has the right technology, approach and business partners to create a self-regulating exchange. We will work closely with the SEC to make the vision a reality.' ``Instinet and Archipelago are also currently reviewing other opportunities to work together that capitalize on some related technologies and shared market philosophies,' said Atkin. In May, Instinet led a Consortium that acquired a majority interest in Tradepoint Financial Networks PLC (TFN.V), a for-profit, U.K.-based electronic stock exchange. Archipelago is a member of the Consortium. Other members include J.P. Morgan, American Century, Morgan Stanley Dean Witter & Co., and Warburg Dillon Read. Archipelago, formed as a joint venture with software developer, Townsend Analytics, is one of the original four ECNs approved in January 1997 by the U.S. Securities and Exchange Commission (SEC). Since its inception, Archipelago has offered subscribers outbound order preferencing to effectively create a national limit order book for Nasdaq stocks. Its leading-edge technology, open architecture and innovations, such as sweep functionality based on a proprietary algorithm, ensure the best execution for investors. Archipelago is also the only ECN with major investors in both the institutional and retail financial services sectors. The Archipelago trading system provides investors fast, cost-efficient and anonymous access to the market. Its average daily volume has more than doubled since December. Instinet, founded in 1969 as an agency broker, is now the global leader in agency brokerage and the development of innovative electronic trading technology, offering equity trading, research and direct electronic access to global markets. Instinet is a member of 17 exchanges in North America, Europe, and Asia. Instinet pioneered the use of advanced technology to improve the trading performance of investment professionals worldwide. That principle still guides its growth and development as a leader in providing electronic brokerage services to investors and issuers in the world markets. Instinet is a member of 17 exchanges in North America, Europe, and Asia, and has offices in New York, London, Paris, Frankfurt, Zurich, Hong Kong, Tokyo, Sydney and Toronto. NOTES TO THE EDITOR: Background on other Archipelago investors: ETRADE, a global leader in online personal financial services, has emerged as the world's most-visited online investing site. The content-rich Destination ETRADE web site offers value-added investing and research features, premium customer service and a fully redundant, proprietary Stateless Architecture(SM) infrastructure. ETRADE intends to expand its global positioning by launching branded web sites in the top 20 financial markets worldwide. In recognition of its innovation and industry leadership, ETRADE was ranked the best online brokerage by Gomez Advisors (Summer 1999) and Lafferty Information and Research Group (4Q98, 1Q99). E*TRADE was also the first securities and financial services company to be awarded both the WebTrust seal of assurance by the American Institute of Certified Public Accountants (AICPA) and the ``Trustmark' seal of approval from TRUSTe. Goldman Sachs is a leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The Firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. J.P. Morgan is a leading global financial firm that meets critical financial needs for business enterprises, governments, and individuals. The firm advises on corporate strategy and structure, raises capital, makes markets in financial instruments, and manages investment assets. Morgan also commits its own capital to promising enterprises and invests and trades to capture market opportunities. American Century serves nearly 2 million individual and institutional investors. Through its broad selection of nearly 70 mutual funds, the company manages approximately $90 billion in assets. American Century has offices in Kansas City, San Francisco, Singapore, Greenwich, and Denver. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is chief executive officer and William M. Lyons is president and chief operating officer. SOURCE: Instinet Corporation -------------------------------------------------------------------------------- More Quotes and News: E Trade Group Inc (Nasdaq:EGRP - news) The Goldman Sachs Group Inc (NYSE:GS - news) JP Morgan & Company Inc (NYSE:JPM - news) Reuters Group PLC (Nasdaq:RTRSY - news)

To: Spytrdr who wrote (7789)	7/28/1999 2:36:00 AM
From: Spytrdr	Respond to of 13953

Archipelago set for full exchange ECN will seek SEC application to convert to full exchange, as Instinet takes a stake July 27, 1999: 6:33 p.m. ET NEW YORK (CNNfn) - Electronic stock trading system Archipelago is set to ask for regulatory approval to become a fully-fledged stock exchange. The company unveiled its intention to coincide with the announcement that the global news and information group Reuters had taken a 16.4 percent stake in the group for an undisclosed sum. The stake will be held by the U.K.-based company's Instinet unit, which is the current leader in off-exchange trading systems. Archipelago owns and operates a so-called electronic communications network or ECN, which allows members to trade Nasdaq stocks. The Instinet investment gives the ECN a powerful group of backers as it plans for its conversion into a fully blown electronic stock exchange. Goldman Sachs, J.P. Morgan and E Trade, already own stakes of between 20 and 25 percent each. The move to file for a conversion to a self-regulating stock exchange follows similar plans by the second largest ECN, Island ECN. Archipelago chief executive Gerald Putnam said the SEC filing was only "a few days away." Only last week, Fidelity Investments, Charles Schwab & Co., Donaldson, Lufkin & Jenrette and Spear, Leeds & Kellogg announced plans to establish a new electronic communications network. The Archipelago announcement emphasizes the accelerating pace of change that is now stirring the relatively becalmed world of stock exchanges. "Advancing technology, regulatory shifts and new business models are creating dramatic changes in the way securities are traded around the world," Douglas M. Atkin, president and chief executive officer of Instinet said. Only last Friday, the venerable New York Stock Exchange said it was considering an initial public offering in November. The Nasdaq exchange has similarly hinted at such a move in the past. In Europe, the major exchanges are discussing plans that would ultimately lead to the creation of a giant, pan-European trading system. However, that goal still appears some way off.

To: Spytrdr who wrote (7789)	7/28/1999 9:08:00 AM
From: Spytrdr	Respond to of 13953

Technology News Wed, 28 Jul 1999, 8:59am EDT Archipelago, Electronic Trading Network, Plans IPO; Instinet Takes Stake By Philip Boroff Archipelago Plans to Go Public; Instinet Takes Stake (Update1) (Adds context.) New York, July 27 (Bloomberg) -- Archipelago, a two-year-old electronic trading network, said it would apply to the U.S. Securities and Exchange Commission to become a stock exchange within a few days and disclosed plans to sell stock to the public as early as next year. Archipelago also said Reuters Group Plc's Instinet Corp. bought a 16.4 percent stake in the network. Instinet operates the largest and oldest electronic communication network, which matches buy and sell orders for stock. The conversion to a stock exchange would pit Archipelago directly against the New York Stock Exchange and Nasdaq Stock Market. ``We think Archipelago has a good shot at becoming a very powerful for-profit exchange in this country,' said Instinet Chief Executive Doug Atkin. Archipelago's move is the latest competitive sally in a summer of tumult for the established U.S. stock exchanges. Just last week, NYSE Chairman Richard Grasso disclosed tentative plans to transform the exchange into a for-profit public company by Thanksgiving. He said the move would help the Big Board, a not- for-profit membership organization for two centuries, compete against proliferating electronic trading networks. Two days earlier, Charles Schwab Corp., the nation's No. 1 online broker, and Fidelity Investments, the No. 1 mutual fund company, said they would create a new trading system with Spear, Leeds & Kellogg, the NYSE's largest member. Securities firms Merrill Lynch & Co., Morgan Stanley Dean Witter & Co. and Salomon Smith Barney all own stakes in electronic communications networks, known as ECNs. Goldman, Sachs Group Inc. owns pieces of three ECNs and one on the drawing board. Archipelago was among the first of the new-generation ECNs, formed in January 1997 as the U.S. Securities and Exchange Commission introduced rules requiring Nasdaq market makers display their best prices. The new rules gave ECNs a national outlet for their orders. Until then, Instinet, founded in 1969, had a virtual monopoly among electronic systems. Today there are about a dozen systems, accounting for a third of Nasdaq's volume. An ECN only accepts limit orders -- buy and sell requests at specific prices or better. Orders that match up are executed automatically. Among the remainder, those with the best prices are posted on the Nasdaq system. Orders are anonymous, so traders don't have to worry about competitors figuring out what they're doing and exploiting the information. Moreover, ECNs charge a fraction of what institutional brokers demand. Island ECN, the second-largest, even pays securities firms to place orders that get executed. Archipelago Chief Executive Gerald Putnam said his ECN makes up 2 percent of Nasdaq volume, and has been profitable for two years. In the second quarter, Archipelago was the fifth-busiest ECN, according to NasdaqTrader.com, a Web site operated by the National Association of Securities Dealers. (The Web site's figures are widely disputed by ECN officials. There's no standard for how ECNs report trades.) IPO Other investors in Archipelago include ETrade Group Inc., Goldman Sachs Group Inc., J.P Morgan & Co. and American Century Cos. Reuters didn't disclose the dollar amount of its investment. ``We're going to make a few bets,' Atkin said in a conference call with reporters. Archipelago, he said ``will be one of the winners.' Atkin said while Instinet and other partners haven't pledged to send a minimum number of orders to Archipelago, it has a financial incentive to favor it. ``If you're making a significant investment in the business, it's implied that you'll give it a shot.' In May, Instinet led a group that took a minority interest in Tradepoint Financial Networks Plc, a small U.K.-based electronic network. The competing ECNs will live or die by volume, and consolidation is inevitable. Selling stock could enable ECN to be a buyer rather than a seller. For the NYSE, an initial stock sale could raise cash for acquiring one or more of the exchange's upstart rivals. An initial public offering would have to be approved by exchange members and the SEC. The NASD board meets Thursday to consider a proposal to spin off the Nasdaq. That could lead to an IPO next year. Both markets say a corporate structure would let them be more nimble in competing. Art Pacheco, chief executive of Strike Technologies Inc., another ECN, said he's considering selling shares to the public as early as this year. Pacheco said he's talked with Salomon Smith Barney about becoming lead underwriter. Salomon Smith Barney declined to comment. The Island ECN was the busiest ECN in the second quarter, according to NasdaqTrader.com., although most traders regard it as the No. 2 network. Owner Datek Online Holdings Corp. recently sold 27.5 percent of it for $55 million, valuing the network at $200 million. Investors included TD Waterhouse Group Inc., venture capital firm TA Associates, and France's Groupe Arnault. Matt Andresen, Island's president, declined to comment on whether Island, which has also applied for stock exchange status, will sell stock to the public. ETrade has invested in Critical Path Inc., Digital Island Inc. and E-Loan Inc., all of which went public this year. Bloomberg LP's Tradebook, an ECN, competes with Reuters and the others electronic communications networks.