A group of major brokerage and financial-services firms today announced plans to form a consortium to acquire a majority interest in Tradepoint Financial Networks PLC (TFN.V), a U.K.-based electronic Recognized Investment Exchange.

Tradepoint is an electronic, order-driven equities market for UK securities with a fully transparent order book. Established in 1996 as a for-profit stock exchange, Tradepoint provides members with efficient electronic access and the ability to reduce investment costs.

The Consortium is being formed by Instinet Corporation, a wholly-owned subsidiary of Reuters Group PLC (RTRSY) and the world's largest agency broker; American Century, J.P. Morgan (JPM) and Morgan Stanley Dean Witter & Co (MWD), and Archipelago, an electronic communications network in which Goldman Sachs (GS) and E*TRADE Group, Inc. (EGRP) are major investors. Other financial institutions have reportedly also expressed an interest in joining the Consortium.


ReliaStar Financial Corp. (NYSE: RLR) announced today that it has signed a definitive agreement to acquire Fairfield, N.J.-based Financial Northeastern Companies (FNC), which comprises Financial Northeastern Securities, Inc., a broker/dealer, and Financial Northeastern Corporation, a Certificate of Deposit broker.

Terms of the deal were not disclosed, however, the company said the transaction will not have a material impact on its earnings in 1999. The company expects the transaction to close in the second quarter, subject to regulatory approval.

FNC will become a subsidiary of ReliaStar Financial Corp., but it will report through PRIMEVEST Financial Services, Inc., ReliaStar's third-party bank marketing firm based in St. Cloud, Minn. PRIMEVEST markets financial products and services to the customers of approximately 600 financial institutions across the country.

There are also cross-selling opportunities as a result of the transaction. PRIMEVEST will have the opportunity to offer its retail products and services, including brokerage services, through FNC's 2,300 credit union customers to their depositors. 

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