Rivals join hand to create electronic trading system
New York: Three of the world’s largest securities firms -- Goldman Sachs Group, Merrill Lynch, and Morgan Stanley Dean Witter -- announced that they are joining hands to form an outfit that will deliver an electronic bond trading system aimed at improving liquidity in fixed-income markets. The stated objective of these rivals coming together is to create a more centralised and efficient market.

The new outfit, called BondBook llc, marked the first time that broker-dealers jointly pledged to back a single electronic and anonymous trading market with significant credit support and trading activity. The joint venture expects initial trading to begin in the fourth quarter of 2000, and will primarily be in investment grade and high-yield corporate bonds, and in municipal bonds.

The three securities firms are committing significant trading activity to BondBook. Their commitments will include the trading of secondary new issues. They will also provide credit support to BondBook, which will serve as credit intermediary to all participants, and provide initial funding, core technologies and personnel support.
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Despite slight drop, markets recover on speculative buying
Mumbai: With selective buy orders into technology, media and telecom sectors, equities staged a smart recovery after a weak opening.

The market resumed on a weak note following reports of a crash of over 100 points in Nasdaq composite index on Monday. However, the flare-up in Zee Telefilms and Himachal Futuristic from the day's lowest levels perked up overall sentiment.

The Bombay Stock Exchange (BSE) Sensex closed at 4615.13, down 24.33 points or 0.52 per cent from Monday, but up from an intra-day low of 4555.09. The National Stock Exchange S&P CNX Nifty provisionally closed at 1432.90, down 7.50 points or 0.52 per cent from Monday, but up from an intra-day low of 1411.90.
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