Sure will be fun with all this added liquidity....
(PR Wires) DJ: Archipelago Announces Agreement to Sell 25 Percent Share DJ:
Archipelago Announces Agreement to Sell 25 Percent Shares in Company To Both
E*TRADE and Goldman Sachs
CHICAGO, Jan. 7 /PRNewswire/ -- Archipelago (Nasdaq: TNTO), operator of an
established Electronic Communication Network (ECN) for NASDAQ stocks, today
announced that E*TRADE Group, Inc. (Nasdaq: EGRP), the provider of a
leading branded destination Web site for online investors, and The Goldman
Sachs Group, L.P., the international investment banking and securities
firm, have each agreed to acquire a 25 percent share of the company. No
financial details were available. Under the agreement, E*TRADE and Goldman
Sachs, as well as the founding partners, Virago Enterprises, LLC and
Townsend Analytics, Ltd., will each own 25 percent of the voting interest
of a new company, Archipelago Holdings, LLC. Created in 1997, Archipelago
is one of 9 ECNs granted permission by the Securities and Exchange
Commission (SEC) to allow purchase and sale transactions to be matched
electronically outside the exchange trading system. Archipelago currently
serves approximately 4,000 individual and institutional traders. As two
financial services leaders, E*TRADE and Goldman Sachs represent exceptional
partners for Archipelago. This agreement will make our network an even more
powerful force in the ECN market, said Jerry Putnam, President of Terra
Nova Trading and one of the founding partners of Archipelago. Since the
Securities and Exchange Commission (SEC) passed regulatory changes to allow
alternative trading systems in 1996, ECNs have played a growing role in the
equities trading market. ECNs currently account for some 25 to 30 percent
of the share volume for NASDAQ stocks. ECNs allow orders to be directly
routed and displayed on the floor of an exchange or the NASDAQ Stock Market
without the need for an intermediary, and assuring order anonymity. ECNs
are clearly a significant and growing segment of todays financial services
market, said Duncan L. Niederauer, a managing director at Goldman Sachs.
Our investment in Archipelago demonstrates Goldman Sachs continued
commitment to provide our clients with the broadest array of liquidity
services. With E*TRADE and Goldman Sachs as major partners in this
enterprise, Archipelago has the opportunity to establish itself as the
premier ECN serving both the retail and institutional markets, Christos M.
Cotsakos, Chief Executive Officer and Chairman-Elect of E*TRADE. The
Archipelago trading system provides tremendous benefits to its users. We
intend to aggressively market that value proposition in order to grow its
ECN market share. We want Archipelago to win wide recognition as the
reliable and trusted solution for alternative trading systems. Archipelago
has an exclusive agreement with Townsend Analytics, Ltd., for use of
Townsends proprietary Book Server software, which enables ECN order
matching and preferencing, for the purpose of trading U.S. equities and a
nonexclusive agreement for purposes of trading other financial instruments.
In addition, Archipelago has a licensing agreement with Townsend Analytics
to distribute RealTick and RealTrade front-end software for active
individual and institutional traders under the Archipelago label. Based in
Chicago, Archipelago LLC will be operated as a stand-alone company. Its
current management and technology development team will remain in place and
no personnel reductions are planned. About E*TRADE A leading branded
provider of online investing services, E*TRADE has established a popular
destination Web site for self-directed investors. The company offers
independent investors the convenience and control of automated stock,
options and mutual funds order placement at low commission rates. In
addition, E*TRADE has a suite of value-added products and services that can
be personalized, including portfolio tracking, Java-based charting and
quote applications, real-time stock quotes, Smart Alerts, market commentary
and analysis, news, investor community areas and other information
services. E*TRADE was ranked the number one overall online brokerage
service in two consecutive quarterly reviews conducted by Gomez Advisors, a
leading independent authority devoted to online financial services (Q3/Q4
1998). In October, the E*TRADE Web site was named the number one online
investing site in an international survey of the industrys top twenty
Internet brokerage firms by Lafferty Information and Research Group, a
global provider of high-value and business information research. Customers
can access E*TRADE at etrade.com on the Internet and through
many other electronic channels and online services (AOL Keyword: E*TRADE).
E*TRADE Securities Inc., and its parent company, E*TRADE Group Inc., are
headquartered in Palo Alto, Calif. About Goldman Sachs The Goldman Sachs
Group, L.P. is a leading international investment banking and securities
firm, providing a full range of investing, advisory and financing services
to corporations, governments, institutions and substantial individuals
worldwide. Founded in 1869, it is one of the oldest and largest investment
banking firms. Goldman Sachs is headquartered in New York and has 40
offices in 23 countries around the globe. About Virago Enterprises, LLC
Virago Enterprises, LLC is an online broker catering to investors with
active trading accounts. Founded in 1994, Virago has 4,000 customers who
route electronic orders over the Internet and private networks. Virago has
its principal offices in Chicago and operates 12 branch offices located
throughout the United States. About Townsend Analytics, Ltd. Townsend
Analytics is a leading provider of comprehensive quote display, charting
and order entry applications for the active trader. Townsend Analytics was
founded in 1987 and is owned by Stuart and MarrGwen Townsend. Townsend
Analytics is headquartered in Chicago and has approximately 50 employees.
/CONTACT: Sam Long or Larry Hill, both of Archipelago, 312-960-1316; or
Susan Walker of Neale-May & Partners, 650-328-5555, ext. 119, or
swalker@nealemay.com, for Goldman Sachs Group, L.P./ 08:20 ES .SPR X.GMS
EGRP I/SCR N/PR N/PREL N/TNM M/FIN P/DIS R/NME R/NY R/US R/USE R/CA
R/PRM
R/USW
______________________________________________________________________ |
