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Thursday, June 10, 1999 J.P. Morgan, American Century Buy Into Archipelago Kansas City-based American Century is acquiring a 5 percent indirect economic interest in Archipelago Holdings, LLC, a premier U.S. Electronic Communications Network (ECN), and its alternative trading system. American Century's 5 percent interest in Archipelago is being purchased through J.P. Morgan & Co. Incorporated (JPM) and is a portion of J.P. Morgan's 20 percent investment in Archipelago, which also was announced today. J.P. Morgan holds a 45 percent stake in American Century. Financial terms of the Archipelago investments weren't disclosed. Archipelago's ECN provides NASDAQ investors - both individual and institutional - with an alternative, lower-cost market in which they could meet and trade stocks. American Century is a leading user of ECNs, with about 30 percent of its mutual fund trades conducted through ECNs. "The investment in Archipelago by J.P. Morgan and American Century will further strengthen our position as a leader in the electronic trading market," said Gerald Putnam, CEO of Archipelago. "Archipelago's investors are the major players among institutional and retail investment services providers." Archipelago is one of the four ECNs approved in January 1997 by the U.S. Securities and Exchange Commission (SEC). The consortium of investors in Archipelago also includes E*TRADE Group Inc. (EGRP) and Goldman Sachs Group Inc. (GS). Archipelago's average daily volume has more than doubled since December. Archipelago, American Century and J.P. Morgan are also part of a consortium that plans to acquire a majority interest in Tradepoint Financial Networks PLC (Vancouver: TFN),a U.K.-based electronic Recognized Investment Exchange. Other members of the Tradepoint consortium include Instinet Corp., Morgan Stanley Dean Witter and Warburg Dillon Read. Printed from: MFWire.com/story.asp?s=24984 Copyright 1999, InvestmentWires, Inc. All Rights Reserved |