.jpg)
Bridge Trading can work seamlessly as a part of Instinet, LLC, The Unconflicted Institutional Broker. With their similar agency-only business models, the combination of the two companies can provide numerous synergies. Instinet will have the opportunity to grow its client base, increase exchange-listed trading volume, and expand its offerings to the institutional investor community. In addition, Reuters will be free to continue its strategy of being a neutral global aggregator of equity liquidity.
With operations located in St. Louis, Missouri, Bridge Trading is a well-established and highly regarded soft-dollar institutional securities broker. Bridge Trading serves more than 500 U.S. institutional clients from regional offices around the country. On average it traded over 6 million of exchange-listed shares per day in 2004. In 2001, Reuters acquired Bridge Trading as part of its acquisition of Bridge Information Systems. In keeping with its Fast Forward plans introduced in 2003 to become more customer-focused, effective and competitive, Reuters continues to divest non-core assets in a tax efficient manner.
"We believe that Bridge Trading's strong client-base and expertise in listed-trading will complement our already well-established pure agency brokerage business," said Mike Plunkett, President, North America, Instinet, LLC. "In addition to an expanded offering, the potentially larger pool of Exchange-listed liquidity can substantially benefit our more than 1,500 institutional clients through improved trade quality."
Phil Lynch, Chief Executive Officer, Reuters Americas stated: "This combination gives Bridge Trading clients access to a much broader trading venue which significantly enhances their access to liquidity in both listed and OTC stocks. This agreement will allow Reuters to remain focused on providing clients with broker-neutral services."
The transaction is subject to NASD approval and other customary conditions, and is expected to close within eight weeks. Through year end 2005, Bridge Trading will continue to have exclusive rights to its existing Reuters Station soft-dollar clients.
About Reuters
Reuters (www.reuters.com), the global information company, provides indispensable information tailored for professionals in the financial services, media and corporate markets. Its trusted information drives decision making across the globe based on a reputation for speed, accuracy and independence. Reuters has 14,500 staff in 91 countries. This includes 2,300 editorial staff in 196 bureaux serving 129 countries, making Reuters the world's largest international multimedia news agency. In 2004, Reuters Group revenues were GBP 2.9 billion.
About Instinet Group
Instinet Group, through affiliates, is the largest global electronic agency securities broker and has been providing investors with electronic trading solutions and execution services for more than 30 years. We operate our two major businesses through Instinet, LLC, The Unconflicted Institutional Broker, and Inet ATS, Inc., The electronic marketplace.
