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New Connection Provides Clients with Expanded Liquidity Pool
BOSTON, February 21, 2007 - Fidelity Brokerage Company (Fidelity), and Lehman Brothers, today announced they have linked their respective alternative trading systems (ATS), Fidelity's CrossStreamSM and Lehman Brothers' Liquidity Center CrossTM (LCX).
The connection between the non-quoted systems broadens execution capabilities for both firms' clients by providing access to the combined liquidity of Fidelity Brokerage Company and Lehman Brothers. At the end of 2006, Fidelity's brokerage platform had $1.7 trillion in assets under administration, 17.1 million client accounts and $3 billion of equity trading per day. Lehman Brothers' award winning equities platform is a leader in institutional liquidity and, as of February 2007, has achieved a #1 overall ranking in the NYSE Program Trading league table for 29 of the last 30 weeks.
"Today's current trading environment has made it increasingly difficult for investors to execute large trades with minimal market impact and information leakage," said Bill Baxter, senior vice president and head of equity for Fidelity Capital Markets Services. "By connecting CrossStream's already deep and diverse liquidity pool with Lehman Brothers' Liquidity Center CrossTM, clients of Fidelity Brokerage Company can have the confidence that the organization may quickly and discreetly find a natural match for their orders."
"Partnering with Fidelity Brokerage Company underscores Lehman Brothers' commitment to seek innovative solutions to provide liquidity to our clients," said Michael Bleich, head of liquidity strategy at Lehman Brothers. "Lehman Brothers' Equities franchise has significantly invested in its electronic trading platform in order to offer our clients best-in-class capabilities in an increasingly complex marketplace."
Run on advanced technology developed by Fidelity, CrossStream is designed to offer the firm's institutional clients the ability to find an anonymous match and increase the percentage of their trades executed on the ATS. Fidelity provides access to both large, liquid securities that can be moved in bulk and a wide range of smaller, less-liquid issues that can be difficult to trade in the public markets. In addition, the platform's sophisticated order-matching logic is conducted within the National Best Bid and Offer (NBBO) spread to help ensure quality executions with minimal market impact. CrossStream offers a range of advanced order types, including market, limit, pegging, discretion, and minimum execution quantity.
Liquidity Center CrossTM (LCX) is a low latency, high capacity limit order matching engine that operates on a continuous basis during market hours. Executions occur at or within the NBBO. The system can generate price improvement versus the displayed markets and reduce market impact. LCXTM also enables traders to anonymously source liquidity from a wide range of order flow that checks LCXTM for price improvement before heading to the public markets.
About Lehman Brothers
Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in investment banking, equity and fixed income sales, trading and research, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit the Firm's Web site at www.lehman.com. Lehman Brothers Inc. is a member of SIPC.
About Fidelity Capital Markets Services
Fidelity Capital Markets Services, a division of National Financial LLC, is the institutional brokerage arm of Fidelity Brokerage Company, one of the nation's leading brokerage firms. Fidelity Capital Markets Services executes equity and fixed income trades, provides execution services in listed options and trades foreign exchange on behalf of a wide array of clients, including millions of individual investors, 1,000 institutional firms, 340 correspondent broker/dealers, 3,400 registered investment advisors and 17.1 million client accounts. The firm also has full-service Syndicate and Prime Services desks. For more information about Fidelity Capital Markets Services, visit www.FidelityCapitalMarkets.com.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of more than $2.9 trillion, including managed assets of nearly $1.4 trillion as of December 31, 2006. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 23 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
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Clearing, custody, or other brokerage services may be provided by National Financial Services LLC or Fidelity Brokerage Services LLC. Members NYSE, SIPC
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