FUNDAMENTAL BROKERS BUYS PART OF MKI BROKERS
Fundamental Brokers Institutional
Associates, a leading inter-dealer broker in U.S. government
securities, said it has agreed to acquire certain assets of MKI
Government Brokers Inc for undisclosed terms.
    Acquisition documents have been signed and are being held
in escrow pending the receipt of certain consents, it said.
    In conjunction with the sale of assets, MKI has ceased
brokering treasury bills, notes and bonds, Fundamental said.
    Industry sources told Reuters yesterday that Fundamental
was close to acquiring the government securities brokerage
division of MKI, a major broker of corporate bonds.
    Fundamental said it intends to use the facilities formerly
used by MKI to provide a new block brokering service in the
most active Treasury issues.
    By separating the execution of wholesale trades from the
heavy volume of smaller lots, large-scale transactions will be
facilitated, the company said.
    "The new system is expected to substantially enhance the
liquidity and effiency of markets," Fundamental said.
    The wholesale brokering service will begin on or around
April 20.
 Reuter
