In Brief: Bank of New York Agrees to Buy ESI Securities

Bank of New York Co. on Tuesday announced plans to buy ESI Securities Co., a New York brokerage and clearing firm, for an undisclosed sum. The deal is expected to close in early November.

The operation will be rolled into Bank of New York's worldwide securities processing division, said Joseph Velli, an executive vice president at the bank.

He said ESI is an "agency broker," meaning it does not take positions or underwrite securities. The firm acts as agent for institutional customers such as bank trust departments, mutual funds, and insurance companies.

Bank of New York is buying the company to facilitate the smoother execution of securities trades, Mr. Velli said. "Over the years they've developed technology in order to facilitate securities execution that blends very nicely with ours," a spokesman said.

ESI's management will stay in place and Bank of New York does not anticipate any staff overlap, said Mr. Velli.

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