PARIS
Transatlantic stock-market operator NYSE Euronext on Wednesday said it plans to sell part of its NYSE Amex options trading business to several investment banks in a move aimed at encouraging them to use the trading platform and lift its dwindling market share.
NYSE Euronext didn't say how much of the business would be sold but said it would be "significant."
"NYSE Euronext will remain the largest shareholder in the entity, which aims to enhance the competitive position of NYSE Amex options, while bringing competitive and operational benefits to the marketplace," it said.
NYSE Euronext said it has agreed in principle to sell the stake to Bank of America Merrill Lynch, Barclays PLC's Barclays Capital, Citadel Securities, Citigroup Inc., Goldman Sachs Group Inc., TD Ameritrade Holding Corp. and UBS AG.
NYSE Euronext acquired the business as part last year's acquisition of the American Stock Exchange for $260 million.
Bringing in major market participants as co-owners of the NYSE Amex market is an approach that has helped build business for consortium-backed competitors like Direct Edge and BATS Exchange, which together now account for nearly a quarter of all U.S. stock trades.
This would also mirror the setup of so-called multilateral trading facilities in Europe like Chi-X Europe Ltd. and Turquoise, which have a set of owners who also use the platforms they co-own.
"This partnership will further align our business interests with those of our customers, and makes NYSE Amex options an even more compelling trading venue within an increasingly competitive marketplace," said NYSE Euronext Chief Executive Duncan Niederauer.
Senior Vice President Edward Boyle said: "We plan to continue to enhance technology and quoting speed, building upon existing service offerings, and introducing new products and order types to generate future order flow."
The NYSE Amex unit has seen its market share fall from above 30% a decade ago to about 7% now.
Adding in the electronic NYSE Arca options platform, NYSE Euronext claims about 18% of all U.S. options volume, which is below a 25% market share target set out by Niederauer at the beginning of the year.
NYSE Euronext expects the sale to be completed by the end of 2009.
NYSE Euronext didn't say how much of the business would be sold but said it would be "significant."
"NYSE Euronext will remain the largest shareholder in the entity, which aims to enhance the competitive position of NYSE Amex options, while bringing competitive and operational benefits to the marketplace," it said.
NYSE Euronext said it has agreed in principle to sell the stake to Bank of America Merrill Lynch, Barclays PLC's Barclays Capital, Citadel Securities, Citigroup Inc., Goldman Sachs Group Inc., TD Ameritrade Holding Corp. and UBS AG.
NYSE Euronext acquired the business as part last year's acquisition of the American Stock Exchange for $260 million.
Bringing in major market participants as co-owners of the NYSE Amex market is an approach that has helped build business for consortium-backed competitors like Direct Edge and BATS Exchange, which together now account for nearly a quarter of all U.S. stock trades.
This would also mirror the setup of so-called multilateral trading facilities in Europe like Chi-X Europe Ltd. and Turquoise, which have a set of owners who also use the platforms they co-own.
"This partnership will further align our business interests with those of our customers, and makes NYSE Amex options an even more compelling trading venue within an increasingly competitive marketplace," said NYSE Euronext Chief Executive Duncan Niederauer.
Senior Vice President Edward Boyle said: "We plan to continue to enhance technology and quoting speed, building upon existing service offerings, and introducing new products and order types to generate future order flow."
The NYSE Amex unit has seen its market share fall from above 30% a decade ago to about 7% now.
Adding in the electronic NYSE Arca options platform, NYSE Euronext claims about 18% of all U.S. options volume, which is below a 25% market share target set out by Niederauer at the beginning of the year.
NYSE Euronext expects the sale to be completed by the end of 2009.
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