Business Notes INSIDER TRADING

The arraignment took just 15 minutes, and then the defendant ducked out of the downtown Manhattan courthouse and sped away in a black luxury limousine. Former Arbitrager Ivan Boesky, looking gaunt and subdued, pleaded guilty before a federal judge to one count of violating federal securities laws. Boesky, 50, who is the leading man in Wall Street's biggest stock-market scandal, remains free until his sentencing in August. The Detroit-born son of a delicatessen owner, who amassed an estimated fortune of $200 million through his dealings, and who still lives on a 200-acre New Castle, N.Y., estate, faces a maximum of five years in prison and a $250,000 fine.

If the lawman who hauled in Boesky has his way, future insider traders could face even more dismal prospects. The day before the arbitrager's plea, U.S. Attorney Rudolph Guiliani of New York's southern district urged the Senate Banking Committee to stiffen the penalties for those who buy or sell securities based on confidential company information. He also called for mandatory prison terms for brokers who lie to investigators.

Neither the plea nor the politicking proved to be enough to shake investor confidence in the stock market's underlying strength, however. On the day of the Boesky hearing, a seat on the New York Stock Exchange sold for a record $1 million.