Effective 1st October, Jiway Broker Services and the assets of the exchange, Jiway Limited, will be fully owned by OM, who will become sole owner of the Jiway trademark and exchange, clearing and back-office-for-hire operations.
Morgan Stanley will remain actively involved as a market maker and trading party on the Jiway exchange.
Commenting on the restructuring, Per E. Larsson, Chief Executive of OM said: "This restructuring enables Jiway to retain its full potential, whilst substantially reducing its cost base. We are now in a much better position to extend the time needed to realise the full value of Jiway as a fully integrated retail exchange."
Jerker Johansson, Managing Director at Morgan Stanley, added, "Given the current market conditions, it is necessary for Jiway to reduce its cost base. This is best achieved by integrating the operations with those of OM. As evidenced by our continued involvement, Morgan Stanley remains supportive of the services that Jiway can deliver to the equity markets."
OM and Morgan Stanley have agreed to share responsibility for those Jiway liabilities incurred before 1 October 2001 not specifically assigned to OM.
