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Omega Research, OnlineTrading.com Merge

Stock trading tool maker Omega Research Inc. and Net broker OnlineTradinginc.com Corp. Thursday merged in a stock deal valued at $300 million.

The agreement calls for Omega Research (OMGA) shareholders to receive one share of common stock of the new holding company Online Trading Group, for each share of Omega Research currently held.

The combination will create the world's first institutional level trading platform for online traders. Features of the new unit will include analytics, streaming real-time market quotes and news and direct ECN online order execution.

While the individual businesses will continue to be run by their pre-merger management teams, the companies disclosed the proposed structure of Online Trading Group. Omega Research executives William R. Cruz and Ralph L. Cruz will serve as co-chairmen and co-chief executive officers. OnlineTrading.com (LINE) executives Farshid Tafazzoli and Steven zum Tobel will be named vice presidents of Online Trading Group. The board of directors of Online Trading Group will initially consist of eight members: Five members designated by Omega Research and three members designated by OnlineTrading.com.

"The online brokerage business is expanding at an accelerating pace, but what most observers lose sight of is that about 20 percent of online traders represent about 80 percent of online trading volume," said Bill Cruz, co-chairman of the board and co-chief executive officer of Omega Research. "By integrating Omega Research's best-of-breed analytics technology with OnlineTrading.com's state-of-the-art order execution, we believe that we will be offering a unique and compelling solution to that 20 percent."

OnlineTrading.com offers real-time direct ECN trading over the Internet and through traditional brokers.

Omega Research's new site WindowOnWallStreet.com will launch next week to offer traders streaming real-time charts, quotes, news, portfolio updates and more. Later this year, Omega Research intends to launch TradeStation.com as a complement to WindowOnWallStreet, which will combine strategy development, back-testing and automation with the streaming real-time delivery of market information incorporated in WindowOnWallStreet.com.