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Non-Tech : J.B. Oxford -- Ignore unavailable to you. Want to Upgrade?

To: Patherzen who wrote (1111)	2/20/1999 12:18:00 PM
From: Patherzen	Respond to of 2220

More of same... Part I Saw this on Raging Bull...(3 parts to follow) by: RickRak2000 18502 of 18513 Part 1 Now that Merrill Lynch (MER:NYSE), which has railed against online trading, has agreed to buy an online trading technology firm, consolidation in the industry may really begin to pick up. Friday, Merrill announced its agreement to buy D.E. Shaw Financial Technology, a unit of D.E. Shaw that develops Internet technology services for brokerages and other financial firms. Terms weren't disclosed. Online trading and Internet technology in general has presented a conundrum for full-service brokers, with their broker-entrenched business models and established technology systems. As the biggest online brokers increase their share of the equity trading market, financial services firms and traditional brokers feel pressure to prowl for online brokers that can offer technology, expertise or just accounts. In addition, online brokers increasingly view size as a way to shore up their defenses in the face of fierce competition in their own industry. Gomez Advisors, a consulting firm best known for its online broker rankings, has stepped in to help potential buyers and sellers find suitable mates -- as sort of a matchmaker for online brokers. "It's clear there are many potential acquirers out there and they don't know how to identify potential acquirees," says Alex Stein, a principal at Gomez Advisors. Prime targets for both traditional and online brokers are the dozens of smaller shops with Internet trading expertise. Smaller brokers that are considered potential targets include Scottsdale Securities, a discount broker with branches that offer online trading under the name ScoTTrade, and National Discount Brokers (NDB:NYSE), whose online trading unit recently cracked the top 10 in trading market share, according to Piper Jaffray. (Neither returned a call seeking comment.)