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To: agent99 who wrote (7659)	9/14/1999 8:59:00 AM
From: TFF	Read Replies (1) \| Respond to of 12617

CNBC Will Buy 12.4% Stake in Archipelago Trading New York, Sept. 14 (Bloomberg) -- General Electric Co.'s CNBC became the latest high-profile investor in electronic trading, announcing it will acquire a 12.4 percent stake in the Archipelago system. CNBC, a business television news network, joins Merrill Lynch & Co., Goldman Sachs Group Inc., J.P. Morgan & Co. and others as investors in Archipelago. The trading network is applying with the Securities and Exchange Commission to become an independent stock exchange. Terms of the investment weren't disclosed. Merrill, which bought a 14.3 percent stake in Archipelago last week, invested about $30 million, people familiar with the situation said. That stake, along with all the other, will be diluted by the CNBC purchase. ``The addition of CNBC to our investment group is another important step in Archipelago's development as a national stock exchange,' Archipelago Chief Executive Gerald Putnam said in a statement. Also today, Salomon Smith Barney Inc. and Morgan Stanley Dean Witter & Co. said they're investing in Primex Trading, the electronic auction system Bernard L. Madoff Investment Securities is developing. Merrill and Goldman are partners in that venture as well. Archipelago was among the first of the new-generation electronic communication networks, or ECNs, formed in January 1997 as the SEC introduced rules requiring Nasdaq market makers to display their best prices. The new rules gave ECNs a national outlet for their orders. Archipelago handles trades of about 25 million shares a day. It is the fourth-busiest electronic network, according to figures supplied by electronic trading companies. CNBC isn't the first financial media concern to bet on electronic trading. Dow Jones & Co., a partner of CNBC in the U.S., owns an interest in OptiMark Technologies Inc. OptiMark operates on the Pacific Exchange and plans a Nasdaq Stock Market system. Bloomberg LP, parent of Bloomberg News, has its own ECN called Tradebook. Merrill is a passive, minority investor in Bloomberg.