New York Stock Exchange (NYSE) announced a blockbuster merger with electronic stock exchange Archipelago on 20 April, signaling a transition into electronic stock trading as well as a major move into the equity options business.
NYSE chairman and CEO John Thain recently said that his exchange planned to explore strategic possibilities in the derivatives arena this year (see FO Week Vol 10 No 4).
Under the announced plan, NYSE will demutualise and its shareholders will take a 70% stake in the merged entity, called NYSE Group. Archipelago shareholders will hold the remaining 30%. Archipelago's market value was last week about $884m.
Included in the deal will...