NYSE owners agrees to buy Chicago Stock Exchange

The New York Stock Exchange’s owner, International Exchange Inc. (NYSE: ICE)announcedon Thursday that it has agreed to acquire the 136-year old Chicago Stock Exchange (CHX). The financial terms were not disclosed.

Sources familiar with the matter said ICE would pay anywhere from $50 million to $100 million for the exchange.

Previously, Chinese-led North America Casin Holdings attempted to acquire the Chicago Stock Exchange, but was rejected by the Securities and Exchange Commission, causing the deal to fall through. The Chinese firm offered $20 million for the exchange.

Subject to the SEC’s approval, CHX will continue to operate as a registered national securities exchange and will benefit from the planned deployment of NYSE Pillar trading technology in ICE’s Chicago data center.

NYSE Pillar will also provide additional functionality for the equity brokerage community in Chicago.

The transaction is expected to close in the second quarter of 2018. The financial impact will not be material to ICE or impact capital return plans.

Leave a Comment