NYSE has bought the one-third ownership stake in the Securities Industry Automation Corporation (SIAC) held by the American Stock Exchange for $40 million, giving full ownership of SIAC to NYSE.
The transaction is expected to be completed in November 2006, said a press release from NYSE.
“We view this as a strategic opportunity to assume greater control of a meaningful portion of our cost base that will allow us to drive improved efficiencies and growth,” says NYSE group president and co-chief operating officer Jerry Putnam, who is also SIAC’s chairman and interim CEO. “Following the transaction, the American Stock Exchange will continue to be a customer of SIAC, although we expect them to reduce their usage of SIAC’s services as previously disclosed.”
“This marks another watershed moment for Amex’s march to technological rebirth,” adds Neal Wolkoff, chairman and CEO of Amex. “We are pleased with the cooperation that NYSE and the SIAC staff showed in helping to complete this transaction. We look forward to a new and independent technology future for the Amex together with the launch of AEMI, our new state-of-the-art electronic market platform.”