NEW YORK — The New York Stock Exchange (NYSE), a subsidiary of Intercontinental Exchange (ICE), has agreed to acquire the National Stock Exchange, Inc (NSX) based in Jersey City. The deal saves NSX from shutting down on Friday.
The transaction is expected to close in the first quarter of 2017, subject to customary regulatory approvals. Terms were not disclosed and the financial impact will not be material to ICE.
As a result, subject to Securities and Exchange Commission (SEC) approval, NSX will continue to operate as a licensed National Market System (NMS) exchange, and no longer has plans to cease trading on December 16 as it previously announced.
The acquisition will also give the NYSE Group an additional U.S. exchange license, bringing its total to four. NSX will be distinct from NYSE’s three listings exchanges – NYSE, NYSE MKT and NYSE Arca Equities – which have unique market models designed for corporate and ETP issuers.
The NYSE will engage with NSX members, buy-side participants and retail brokerage firms before finalizing operational plans for NSX.
National Stock Exchange was founded as the Cincinnati Stock Exchange (CSX) in 1885, and later became the first all-electronic exchange in the U.S. in 1980.