New York Stock Exchange (NYSE) members overwhelmingly approved the merger with Archipelago Holding on 6 December, paving the way for a more electronic stock market and the New York exchange's re-entry into the US equity options business through Archipelago's ownership of Pacific Exchange (PCX).
Of the 1,307 NYSE member votes cast, 95.4% voted in favour of the merger deal. Earlier in the day, Archipelago shareholders also approved the merger.
Many market participants believed that the deal would be likely to serve as a catalyst for future consolidation among US options markets. The options industry, which has continued to grow dramatically in volume, was considered a key component of the NYSE-Archipelago deal. Archipelago officially purchased PCX in September (see FO Week Vol 10 No 37) and said last month it has been working on a new options trading platform to replace the PCX Plus platform.
The...