NYSE Euronext has sold a majority stake in the former American Stock Exchange to a group of broker-dealers, including Citadel Investment Group’s investment-banking unit.
The deal was approved by the Securities and Exchange Commission on last week. In exchange for 52.8% of the NYSE Amex Options exchange, the seven brokers agreed to send a portion of their options-trading orders to the Amex.
“By finalizing this partnership agreement, NYSE Amex Options has the unique opportunity to deliver a new paradigm in exchange management and functionality by aligning our core business operations with that of our key customers,” the exchange’s CEO, Steve Crutchfield, said.
NYSE Amex has more than doubled its share of U.S. options trading since the deal with the broker group was announced almost two years ago.
The seven new owners of the exchange are Citadel Securities, Bank of America Merrill Lynch, Barclays Capital, Citigroup, Goldman Sachs, TD Ameritrade and UBS, with NYSE Euronext remaining the bourse’s largest single shareholder. NYSE will adjust each firm’s share of the 52.8% of the exchange each year based on their trading targets; none will be permitted to own more than 19.9% of NYSE Amex.