Three Fund Companies, Brokerage, Will Form ECN
October 11, 1999
Two leading mutual fund companies and two brokerage firms are collaborating to develop an electronic communications network (ECN), yet to be named. The trading divisions of Fidelity Investments of Boston and Charles Schwab Corporation of San Francisco are joining with the DLJ and Pershing affiliates of Donaldson, Lufkin & Jenrette of New York and Spear, Leads & Kellogg of New York to form a new ECN.
The new ECN will be developed from Spear, Leeds & Kellogg's existing ECN, known as REDIBook.
The new network is meant to provide the four participating firms with greater liquidity and better prices for their own orders, as well as to attract business from individual investors interested in trading after hours, said Larry Liebowitz, acting chief executive officer of the new venture, in a statement. REDIBook is currently open for trading until 8 p.m., Eastern Standard Time, and beginning Oct. 11, will be open until 11 p.m. EST, the companies announced.`