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MultiTech Brokerage Solutions: T+1 Securities Trading Means Rapid Consolidation For Clearing Companies.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--July 6, 1999--

Clearing companies, the firms that put together all the records involved in a trade of stocks or bonds, will face rapid consolidation in the next 36 months as a result of the Security and Exchange Commission's mandate to go to T+1 trading.

That is according to an executive who was among the securities-industry's top operations and systems leaders during Wall Street's modern conversion to automated technology.

"T+1 means technology will advance at a pace never before seen on Wall Street," said Frank J. McPartland, chairman and CEO of MultiTech Brokerage Solutions, Inc. (NQB:MBSL).

Firms trading U.S. stocks and bonds are expected to have back-office operations ready for T+1, or next-day trading settlement, by mid 2002, according to the SEC. Today, trades settle at T+3 or three days after the trade. Experts believe this change will require overhauling the industry's clearing and processing systems.

"The investing public is demanding lower commissions and account access through the Internet. Wall Street brokerage firms will have to satisfy those needs plus the needs of the regulators in the move from today's T+3 to T+1," McPartland said.

McPartland is known on Wall Street as the chief executive who was the first to unbundle back office clearing services and sell transaction processing "a la carte" - the system that is hugely profitable and the predominant one used today.

McPartland added: "To meet regulatory demands while at the same time reducing processing and information costs, firms with the legacy systems common today will have to merge or die. New clearing firms will emerge using innovative technology. These new-millennium firms will charge substantially less for clearing and need fewer staff."

MultiTech Brokerage Solutions, Inc., is a Florida-based consolidator of technology-driven financial service companies including clearing firms and the company's shares are listed by the symbol MBSL through the National Quotation Bureau's (NQB) Pink Sheets.
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Publication:Business Wire
Date:Jul 6, 1999
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