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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (5321)	10/27/1999 10:41:00 PM
From: Gary Korn	Respond to of 10027

10/27/99 Reuters Eng. News Serv. 10:22:00 Reuters English News Service C) Reuters Limited 1999. Wednesday, October 27, 1999 USA: Two stock trading systems to merge. NEW YORK, Oct 27 (Reuters) - Brass Utility and Strike Technologies, two electronic stock trading networks that compete with traditional exchanges, on Wednesday said they would merge to create the No. 3 U.S. alternative trading system. The planned merger is the first combination in a consolidation expected among so-called electronic communications networks (ECNs), which are computerized systems that automatically match share orders. Currently nine ECNs, many of which are backed by major Wall Street firms, are operating in the United States, and industry watchers have said the fragmented sector was ripe for consolidation. Brass Utility, also known as Brut and majority owned by computer services company SunGard Data Systems Inc. , will hold a 50 percent stake in the combined company. Strike, which was developed last year by Bear Stearns Cos. and is backed by a slew of Wall Street firms, will hold the remaining 50 percent stake. The companies told Reuters two weeks ago they were in advanced merger talks. The deal would give Brut and Strike the share trading volume needed to compete against rivals, such as Instinet Corp., the brokerage unit of news and information company Reuters Group Plc , and Island ECN, owned by Web brokerage Datek Online, which rank as the two largest ECNs in terms of volume. Strike and Brut rank in the middle to lower rungs among U.S. ECNs. Strike, which started operations in November 1998, handles about 22 million shares a day. Brut, which began operations in May 1998, handles about 58 million shares daily. "The company's (Brut's) dramatic growth, which has seen trading volume rise from 14 million to 58 million shares per day in the past four months, will be further enhanced by the Strike merger," said Robert Greifeld, chief executive of SunGard Brokerage Systems. Though a potential threat to the exchanges, ECNs are still struggling to attract enough stock orders to generate sufficient trading volume - the critical factor in getting more business. Without that so-called liquidity, ECNs cannot survive because investors won't be able to match stock orders on their systems. Investors in the systems expect more consolidations in the highly fragmented market. "We believe that a consolidation of the nine ECNs will ultimately benefit investors seeking to execute limit orders," said Ken Pasternak, chief executive of market maker firm Knight/Trimark Group Inc. , which is a Brut investor. "By combining Brut's low-cost pricing and rebate model with Strike's expanded customer base and distribution, Brut is well positioned to create positive execution results for active traders, institutions and broker dealers," he added. Aside from SunGard, other Brut investors include Goldman Sachs Group Inc. ; Merrill Lynch & Co. Inc. ; Morgan Stanley Dean Witter & Co. and Knight/Trimark Group Inc. Strike is backed by 24 Wall Street and technology firms, including Lehman Brothers Holdings Inc. ; Hambrecht & Quist Group and Citigroup Inc.'s Salomon Smith Barney securities unit and Bear Stearns. ((-Jack Reerink/ Financial Services Desk (212) 859-1725-)).

To: gbh who wrote (5321)	10/27/1999 10:42:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 10027

10/27/99 Reuters Eng. News Serv. 06:02:00 Reuters English News Service C) Reuters Limited 1999. Wednesday, October 27, 1999 BELGIUM: Easdaq raises additional 3.2 mln euros in capital. BRUSSELS, Oct 27 (Reuters) - Easdaq, the Brussels-based pan-European exchange for growth stocks, said on Wednesday it raised an additional 3.2 million euros in capital from two new and three existing shareholders. The new shareholders include U.S. Web brokerage E*Trade Group Inc , taking a 2.26 percent stake in Easdaq, and trading firm Susquehanna Partners, with a 1.13 percent stake. In addition, U.S. Nasdaq market maker Knight/Trimark , Easdaq's largest shareholder, increased its holding to 19.49 percent from 18.92 percent. Other existing shareholders increasing their stake were Equitable Life Assurance Society of the UK, with a 7.56 percent up from 7.23 percent previously, and market maker Herzog Heine Geduld, raising its stake to 1.19 percent. The new round of investment followed a 22.8 million euro capital increase undertaken in late July, along with the addition of five new shareholders. ((Leslie Adler, Brussels newsroom +32 2 287 6810, fax +32 2 230 7710, belgium.newsroom@reuters.com)).