Nyse Euronext has agreed to sell a "significant" equity stake in one of the company's two US options exchanges to a consortium of market makers, including BofA Merrill Lynch, Barclays Capital, Citadel Securities, Citi, Goldman Sachs, TD Ameritrade and UBS
Under the framework agreement, Nyse Euronext will remain the largest shareholder in the entity - Nyse Amex options - and will continue to manage the day-to-day operations of the business, which would operate under the supervision of a separate board of directors and a dedicated chief executive officer.
Nyse Euronext executives expect the deal to enhance its competitive position by bringing deeper liquidity and tighter spreads to the market.
Edward Boyle, SVP, US options for Nyse Euronext, adds: "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 transaction is scheduled for completion by end-2009, subject to the negotiation and execution of final legal documentation and regulatory approvals.