The vote came after nearly a year of review by the Board and discussion with Exchange members and seat owners. Under the terms of the plan, PHLX memberships (sometimes referred to as "seats") will be converted into shares and traders will access the market via newly issued permits.
"The Board's approval is an evolutionary step for the PHLX," said Meyer "Sandy" Frucher, chairman and CEO of the Exchange. "The vote to demutualize will position the Exchange for growth."
Mr. Frucher also said that if seat owners and members vote in favor of the plan, the Exchange is looking for Securities and Exchange Commission approval in the first quarter of next year.
Kevin Foley, Chief Executive of Bloomberg Tradebook and Chairman of the Exchange's Board advisory group on demutualization said: "For such a significant step, the Board took pains to ensure a collaborative process fair to the exchange's regulatory function, and fair to the interests of all stakeholders - especially the Exchange's trading community and seat owners. The plan the Board approved unanimously today repositions the Philadelphia Stock Exchange and its stakeholders to seize opportunities and thrive in today's vigorous markets."
The Philadelphia Stock Exchange, the first in the nation, was founded in 1790. The PHLX trades 2,000 stocks, nearly 1,000 equity options, 13 sectors index options and currency options. For more information about the PHLX and its products, visit www.phlx.com.
