Archipelago Holdings, Inc., the owner and operator of the Archipelago Exchange(R) (ArcaEx(R)), has operated Archipelago Brokerage Services as an introducing broker providing broker-dealer customer access to ArcaEx for securities traded on ArcaEx. Order Execution Services Holdings is the parent company of Order Execution Services, LLC, a leading independent introducing and agency broker-dealer.
"The sale of the Archipelago brokerage subsidiary was obligated by an order of the Securities and Exchange Commission as a condition to Archipelago's acquisition of the Pacific Exchange, Inc., in September 2005," said Mike Cormack, Archipelago's president.
"We are confident that customers previously served by Archipelago will be well served under the growing umbrella of OES," he said. "As a part of OES, ABS Brokerage Services customers will be the beneficiaries of enhanced connectivity and customer service."
David M. Scheckel, CEO of OES, welcomed Archipelago's customers. "ABS will deliver to its customers a competitive trading platform with competitive pricing, FIX connectivity, new order types and complete anonymity," he said.
"ABS Brokerage Services, like OES, will continue to focus on innovation and attention to customer service. As a result of this acquisition, we will maximize our services to become a one-stop venue offering advanced order routing and connectivity on one competitive low-cost platform," Mr. Scheckel said.
The transaction, which is subject to regulatory approvals, was executed on December 23, 2005 and is expected to close in the first quarter of 2006, whereupon Archipelago Brokerage Services will be renamed ABS Brokerage Services. Terms of the acquisition were not disclosed.
