TD Securities is buying the securities trading technology platform and options market-making businesses of the Stafford group of firms, and the LETCO group.

The price is US$280 million in a mix of cash and stock up front, with up to US$150 million to be paid over four years based on profit performance. The deal is expected to close by March, subject to due diligence and regulatory approvals.

The new acquisitions are expected to be at least neutral to TD Bank’s earnings per share in fiscal 2002, and accretive to TD Bank’s earnings per share in fiscal 2003.

Both Stafford and LETCO are headquartered in Chicago with operations in New York, San Francisco and Philadelphia. TD Securities plans to merge the two firms. It will manage the combined entity with the support of executives from Stafford and LETCO.

Stafford has developed a leading integrated trading and risk management technology platform for equity options products and operates an extensive equity options market-making business within the U.S. and Europe. LETCO is recognized as one of North America’s leading equity options market-making firms.

“We are particularly delighted to acquire two businesses with complementary strengths in market-making and technology and with strong and longstanding reputations in the securities industry,” said Don Wright, chairman and CEO of TD Securities. “We are confident that this combination of technology and scale in the equity options market-making business, together with TD Securities’ strength and expertise, will provide us with a competitive advantage in this market.”