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The CHX will leverage the technology, operational knowledge and expertise of its investors to enhance the electronic trading capabilities of the CHX, improving the exchange's ability to compete in the rapidly changing markets. To support this goal, each firm will have a voice on the boards of directors following closing, which is scheduled for this summer, pending necessary regulatory and stockholder approvals.
Valerie Jarrett, CHX Chairman, said, "This transaction represents an endorsement of the Exchange's strategic plan to leverage existing volume and connectivity, and to integrate a state of the art electronic trade matching engine in order to attract significant new business. We welcome these key industry leaders as shareholders and we are confident that they will play a vital role in increasing shareholder value while we continue to serve the investing public."
CHX CEO, Dave Herron, added, "We believe that this is an ideal blend of investors with ability to bring together retail, institutional and professional trading activity. Throughout the negotiations with each investor, we have developed a shared vision of the markets and the significant role that the CHX will play in the highly automated U.S. equity-trading environment."
About the CHX
The Chicago Stock Exchange was founded May 15, 1882 and is a strong force for competition to all U.S. equity markets. The CHX trades more than 3,500 NYSE, AMEX, NASDAQ and CHX-exclusive issues. In 2006, the CHX will launch a technologically advanced, scalable, and robust exchange trade matching engine. With connectivity to over 130 order sending firms, the CHX will offer additional functionality beyond the simple matching of orders and will become the ideal venue for hedge funds, options market markers, quantitative, professional and active individual traders that require immediate and automated execution, while continuing to serve the needs of traditional broker-dealer clients and the individual investors they represent.
