Aubrey G. Lanston, a former assistant to the Secretary of the Treasury, started his eponymous firm in 1949. Hoping to draw on his significant experience with the financial markets, and specifically as a bond trader, Lanston envisioned a firm that would specialize in government securities. The firm quickly became well-respected, and in 1957 was chosen as a primary dealer by the Federal Reserve. Essentially, that means that the company trades directly with the local Fed bank (in Lanston's case, the Federal Reserve Bank of NY), underwrites U.S. treasury auctions and makes markets for government securities.

Japan buy-out

The firm continued its rich history of underwriting and researching government obligations for forty years, when it began to attract potential suitors looking for a foot-hold in government markets. The winner was Industrial Bank of Japan, a Tokyo-based firm with over $28 billion in revenues in 1999 that acquired Lanston in December 1986. Partnering with IBJ allowed Lanston clients increased access to Japanese securities markets and vice versa, and Lanston has maintained a level of independence. (IBJ announced major merger plans in August 1999, a proposed deal with Dai-Ichi Kangyo Bank and Fuji Bank that would create the largest bank in the world. The merger is pending approval and it's unclear what, if any, effect it would have on Lanston's business.)

3 A.M. bond cravings

The IBJ merger has also allowed Lanston to maintain a global presence, and they have offices in the 3 largest trading markets ? New York, Tokyo and London. That allows Lanston to have traders and researchers on call, somewhere, at any time that trading is open anywhere in the world. While this is not unique at larger firms, it is impressive for a firm of Lanston's size.

Futures and options

In 1987, Lanston's reach was broadened even more with the establishment of IBJ Lanston Futures, a firm specializing if trading and research of complex futures and options. IBJ Lanston operates as a clearing member for several of the largest options exchanges, including the Chicago Board of Trade, the Chicago Mercantile Exchange, London International Financial Futures Exchange, Eurex (the Swiss derivatives exhange) and Simex (the Singapore-based exchange).

Black eye for a top firm