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Spear Leeds & Kellogg plans to spin off its RediBook electronic communications network into a stand-alone entity that will be co- owned by retail discount brokerages that can direct order flow into the trading system.
RediBook ECN LLC, as the company would be known after the spin- off, would benefit from infusions of capital and order flow from discount brokers like TD Waterhouse Group, which announced last week that it was pulling the plug on a planned $25 million investment in Island ECN and joining the RediBook consortium.
"We don't want to be like Strike or Brut, where you have 20 to 25 members but nobody really cares," said Larry Liebowitz, acting chief executive officer of RediBook, referring to two smaller ECNs that are owned by Wall Street brokerage houses. "Nobody...