NYSE Euronext to acquire the American Stock Exchange

By: Ray Pellecchia

File Under: Miscellaneous

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Conference call at 5:15 p.m. today. Details in this news release, issued a few minutes ago. Excerpt:

--Strategic Transaction Creates Value for Customers and Shareholders; Accretive in 2009--
--Underscores NYSE Euronext’s Continued Leadership in Global Consolidation--
--Strengthens Company’s U.S. Options, ETF and Cash Product Offerings--

...

The acquisition of the Amex provides for a number of additional benefits and opportunities for NYSE Euronext:

Obtain a second U.S. option exchange license, which will enable NYSE Euronext to operate a compelling dual market structure making available to all customers the choice of price-time priority on NYSE Arca and the Amex’s traditional market-maker model;

Provide additional volume to NYSE Euronext’s robust U.S. options business, making it the third largest U.S. options marketplace;

Operate a third, complementary U.S. cash equities exchange, in addition to the NYSE and NYSE Arca;

Strengthen NYSE Arca’s leadership position in ETF listing and trading, joining 381 current Amex ETF listings with 240 NYSE Arca ETF listings;

Offer a leading venue for listing and trading closed-end funds and structured products, including 545 listings on Amex and over 1,000 listings on NYSE;

Realize annualized run rate cost synergies of over $100 million within two years from closing, including technology, data center and staff integration, consolidation of professional and contract services and vendors; and

Relocate Amex’s trading floor operations to the NYSE trading floor.