FUNDAMENTAL BROKERS BUYS PART OF MKI BROKERS Fundamental Brokers Institutional Associates, a leading inter-dealer broker in U.S. government securities, said it has agreed to acquire certain assets of MKI Government Brokers Inc for undisclosed terms. Acquisition documents have been signed and are being held in escrow pending the receipt of certain consents, it said. In conjunction with the sale of assets, MKI has ceased brokering treasury bills, notes and bonds, Fundamental said. Industry sources told Reuters yesterday that Fundamental was close to acquiring the government securities brokerage division of MKI, a major broker of corporate bonds. Fundamental said it intends to use the facilities formerly used by MKI to provide a new block brokering service in the most active Treasury issues. By separating the execution of wholesale trades from the heavy volume of smaller lots, large-scale transactions will be facilitated, the company said. "The new system is expected to substantially enhance the liquidity and effiency of markets," Fundamental said. The wholesale brokering service will begin on or around April 20.