Instinet Corp., the electronic trading subsidiary of Reuters Holdings PLC, will acquire Lynch Jones & Ryan, a leading provider of commission recapture programs for pension plan sponsors, executives for the companies announced today. They said they hope the marriage will create a powerful force in the pension fund sponsor community in the United States as well as in Europe and Asia for trading and commission recapture and soft-dollar programs. The deal, pending regulatory approval, is expected to close by years end. Terms werent disclosed. Together the companies account for about 4% of New York Stock Exchange volume and 20% of Nasdaq volume. Instinet, through various means, trades about 2% or 3% of volume in NYSE stocks, while LJR trades about 1% of volume. LJRs latest annual revenue was $108 million, the vast majority from plan sponsor commission recapture programs. On average, plan sponsors pay a net 1.5 cents to 2.5 cents a share, after recapture. About 20% to 25% of the revenue comes from soft dollars. In its soft-dollar business, Instinet paid out $85 million to vendors of research for 1998, they said. LJR is owned by 45 shareholders, including its four senior executives, who own 80% of the company.