Merrill Lynch Acquisition To Boost Its Internet Presence - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Merrill Lynch Acquisition To Boost Its Internet Presence

Merrill Lynch today moved to bolster its Internet know-how by acquiring D.E. Shaw Financial Technology, L.P., the in-house technology arm of another financial services firm. The deal with institutional brokerage D.E. Shaw & Co. includes technology and about 30 technical staff members from its unit known as DESoft. Financial terms were not disclosed.

"The acquisition of DESoft underscores Merrill Lynch's commitment to providing our clients with a total financial relationship," vice chairman John L. Steffens said in a statement.

Merrill Lynch plans to use the newly acquired unit as part of a two-stage strategy of gradually introducing online trading to its clients starting in the next several weeks. Customers with certain fixed-fee accounts at Merrill Lynch Online, which offers limited functions such as viewing statements and paying bills to a total of 400,000 clients, will then be able for the first time to use the Web site to submit trades for stocks and mutual funds.

A Merrill Lynch spokeswoman says D.E. Shaw's technology will be used in the second stage to add real-time trade processing and updating of portfolio balances to its Web site. The D.E. Shaw technology will also be employed, she says, to build ways for Merrill Lynch's legions of brokers to collaborate more effectively via the Internet with their clients.

The conflicts between full-service brokers who charge relatively high commissions for personalized service and the cut-rate fees found on the Internet has proved a major sticking point for Merrill. It is the country's largest securities brokerage firm, but it has been slow to embrace the Internet as it grappled with how to use the Web without undercutting its brokers. By building a collaborative platform using D.E. Shaw's technology, the company appears to be trying to arrange a harmonious marriage between its brokers and the Internet, something no other full-service financial services firm has been able to do.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll