ATS Pursues Partnerships/Joint Ventures for LimiTrader.com

Seeking to enhance and expand the capabilities of its LimiTrader.com online bond trading system, Automated Trading Systems (ATS) is holding active talks with a plethora of firms in the fixed income, foreign exchange and equity trading communities. With LimiTrader.com as its lure, ATS expects to snag a mix of partnerships, joint ventures and licensing deals with this group of would-be allies--which includes at least one electronic communications network (ECN) and one bond consortium--within the next few months.

Randy Burwell, ATS' managing director of capital markets, says the vendor has already signed letters of intent with "four or five" firms outside of LimiTrader's traditional fixed-income business. While declining to specify any of ATS' prospective partners, Burwell says the vendor is talking with a diverse mix of companies--including foreign exchange, commodities and equities trading firms. The equities firm, he says, would use LimiTrader for over-the-counter (OTC) stock trading.

ATS' joint venture/partnership/licensing targets include any OTC market that puts an emphasis on "negotiation and anonymous trading" capabilities, says Burwell. Within its core fixed income area, he says, ATC has participated in negotiations with both individual broker/dealers and a consortium of brokers.

After it forms its partnerships and/or joint ventures for LimiTrader.com, ATS expects to be able to devote more time to enhancing the underlying technology that drives its flagship system. Currently, LimiTrader.com provides coverage of high-yield bonds and convertible bonds. By the first quarter of 2001, the system is scheduled to add investment grade corporate bonds and new issuance of medium term notes to its areas of coverage. ATS' business units include LimiTrader.com and LimiTrader Securities, a NASD broker/dealer.