(December 15) – TD Waterhouse Group, Inc.is launching an online joint venture with The Bank of Tokyo-Mitsubishi Ltd.
The new firm, to be known as BTM-TD Waterhouse Securities Co. Ltd., will offer online financial services, including discount brokerage, equity trading and other financial products to the Japanese retail market through the Internet and other channels. The deal is still subject to regulatory approval, but operations are intended to begin in spring 2000.
Initially the venture will be capitalized at ¥5.5 billion, possibly increasing to ¥10 billion in year two. BTM will own 55% of the new firm with Waterhouse holding the rest. They are in discussions with Tokyo-Mitsubishi Personal Securities Co. Ltd., and KOKUSAI Securities Co. Ltd., for additional capital participation.
The continued deregulation of the retail brokerage business in Japan and the rapid growth of Internet usage there is expected to drive growth in the new venture.