CBOE stock market to acquire all-electronic stock exchange (original) (raw)

The CBOE Stock Exchange, which is owned by CBOE Holdings Inc., announced Thursday that it will acquire the National Stock Exchange Inc., an electronic exchange based in Jersey City, N.J. that is owned primarily by large broker dealers.

The Chicago exchange said in a release that it plans to operate NSX as a separate exchange. Terms of the deal, which is expected to close later on this year, were not disclosed.

David Harris, the CEO of the CBOE Stock Exchange, said the move “should enable us to efficiently operate a second exchange and to grow our customer base by providing additional pricing models to the U.S. equities marketplace.”

Russ Chrusciel, a derivatives trading product manager at SunGard Global Trading in Chicago, said the deal underscores the importance of increasing the company’s foothold to attract customers.

NSX was originally created as the Cincinnati Stock Exchange. In 1980, it became the first all-electronic exchange, according to its website.

CBOE Holdings went public in 2010. This July, it moved the CBOE Stock Exchange’s trading operations from Chicago to Secaucus, N.J., to draw in more high-frequency electronic traders.

Shares of CBOE Holdings were down 1 percent in Thursday morning trading.

With Reuters

Originally Published: September 29, 2011 at 1:00 a.m.