The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), the world's largest exchange company, today announced it has completed its acquisition of the Boston Stock Exchange (BSE). NASDAQ OMX will use the new platform to launch a second U.S. equities market. The new entity will be renamed NASDAQ OMX BXSM ("BX") and is expected to launch in the fourth quarter of 2008.
Bob Greifeld, Chief Executive Officer of NASDAQ OMX, said, "2008 has been a pivotal year for The NASDAQ OMX Group given the completion of three exchange acquisitions. These have contributed to our transformation into broader asset classes and our growth across borders and new geographic regions." "The completion of The Boston Stock Exchange transaction gives us the ability to offer customers more choices in U.S. equity trading just as we have done with NASDAQ OMX PHLX and The NASDAQ Options Market," added Greifeld.
Boston Stock Exchange Chairman and President, Michael J. Curran said, "With the completion of this deal, the Boston Stock Exchange will thrive within the NASDAQ OMX family as it continues to offer its clients low-cost, innovative solutions, which was a key principle of the BSE since its inception. I am pleased that the BSE will enter a new phase and re-launch later this year as NASDAQ OMX BX in this dynamic market place," added Curran.
NASDAQ OMX Executive Vice President of Transaction Services, Chris Concannon commented, "With NASDAQ OMX BX we will have the ability to offer a second quote within the U.S. equities marketplace providing our customers enhanced trading choices and price flexibility. We will continue to leverage our INET trading system, which runs the largest U.S. equities exchange, for the NASDAQ OMX BX trading platform to give customers yet another fast and efficient market under The NASDAQ OMX Group," added Concannon.
As part of this transaction, NASDAQ OMX has acquired an SRO (Self-Regulatory Organization) license for trading both equities and options. NASDAQ OMX did not acquire an interest in the Boston Options Exchange (BOX) from the BSE. However, a regulatory services arrangement for the BOX market will remain in place. BX, through BOXR, will operate the regulatory services provider to the BOX, which is an options trading facility of the BSE.
Upon completion, NASDAQ OMX BX will be part of NASDAQ OMX Transaction Services business. Michael J. Curran, formerly Chairman and CEO of The Boston Stock Exchange has been named to the Board of Directors for The NASDAQ Stock Market LLC, NASDAQ OMX PHLX, and NASDAQ OMX BX.
