In a continuing consolidation of stock exchanges, Nasdaq Stock Market has announced its intent to scoop up the Boston Stock Exchange (BSE) and related assets for about $61 million. The deal does not include the BSE's minority stake in the Boston Options Exchange (BOXR) but does include the Boston Equities Exchange (BeX), Boston Stock Exchange Clearing Corporation (BSECC), and BSE's regulatory authority over the BOXR.
Nasdaq President/CEO Bob Greifeld released a statement affirming that We believe a second exchange license in both equities and in the future options will provid market structure flexibility as we continue to deliver on our mission of being the number one trading platform in the transactions business. Nasdaq's Executive Vice President added that the exchange's new ability to offer a second quote on shares listed on the 3 main stock exchanges will arm our diverse customer base with more choices and competitive pricing options.
The BSE's Chairman/CEO, Michael J. Curren, released a statement noting Though it is a sad moment for the BSE and its 173 year heritage of innovation and service to the U.S. markets, we are not immune to the global consolidation that is occurring in the industry ... we believe our sale to NASDAQ is a favorable outcome for our seat holders, and we are proud to become part of The Nasdaq Stock Market...
NDAQ officials expect the acquisition to show a positive effect on earnings within a year of the deal's closing, which is expected for the first quarter of 2008.
Nasdaq shares are not available for premarket trading.