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The Vanguard Group will use Pershing's NetExchange online trading, research and clearing product, a move that is expected to boost distribution of Vanguard's transaction-fee supermarket, FundAccess. In addition to a new clearing arrangement, the deal will give Vanguard's customers online access to mutual funds and individual stocks and bonds, said Alton Jones, managing director at Pershing. Vanguard will private label NetExchange. Vanguard is making the move to offer securities online because "the Internet is the 800 number of the future," said a Vanguard spokesman. Pershing, the clearing arm of Donaldson Luftkin & Jenrette, will assume Vanguard's clearing from Wheat First Securities in October, said Jones. David Williams, president of Wheat First Securities Clearing Services, said Vanguard is becoming more of a discount brokerage and Wheat First clears only for full-service firms. The Vanguard spokesman declined to comment on the clearing arrangement.