Thursday, August 16, 2007

Investment Banks to Start Trading Platform

Citigroup, Lehman Brothers, Merrill Lynch, Morgan Stanley and New York Mellon have announced that they are creating a private system to trade stocks of private companies.

The new system will allow companies to have their securities trade, without being public. The ramifications could be significant, as the companies should be able to avoid the rules governing publicly listed companies.

The system is scheduled to be active by September.