The New York Stock Exchange is being sold to a rival exchange for about $8 billion, ending more than two centuries of independence for the iconic Big Board.
Atlanta-based IntercontinentalExchange – an upstart commodities and derivatives trading platform – said Thursday that NYSE Euronext Inc. shareholders can chose to receive either $33.12 in cash, .2581 IntercontinentalExchange Inc. shares, or a combination of $11.27 in cash plus .1703 shares of stock.
The deal has been approved by the boards of both companies, but would have to be approved by regulators.
As stock trading has become less profitable, more exchanges around the world have been trying to merge.
“All of these exchanges are busy trying to buy each other up,” said New York Times Op-Ed Columnist and WNYC Contributor Joe Nocera. “They’re all in this process of consolidating because profits are being squeezed. It’s a tough, tough market. High frequency trading is taking over the market and so electronics matter a whole lot more.”
WNYC’s Soterios Johnson spoke to Nocera Thursday. To listen to the full interview, click on the audio above.
With the Associated Press