American Stock Exchange
|American Stock Exchange|
|Headquarters||New York, NY|
|Products||Stocks, Options, ETFs|
ALSO SEE: NYSE Amex
The Amex was acquired by NYSE Euronext on Oct. 1, 2008. Its name was changed to NYSE Alternext U.S., and it shed its old technology and market model and adopted those of the NYSE. The equities group is known as NYSE Alternext, and the options group is called NYSE Amex Options. Memberships are gone and traders access the market for small caps via trading permits. Specialists are now called designated market makers and function like those of the NYSE.
The acquisition, proposed in January of 2008, gave NYSE Euronext a bigger stake in the options business (as well as exchange-traded funds ETFs, closed-end funds, structured products and cash equities). Total cost of the deal was $260 million in NYSE Euronext common stock, plus additional shares for Amex members of NYSE Euronext common stock based on the net proceeds from the expected sale of Amex’s lower Manhattan headquarters. The deal was subject to approval by regulators, including from the SEC and Department of Justice. The transaction is expected to be accretive to NYSE Euronext’s 2009 earnings.
On June 17, 2008, NYSE Euronext and Amex announced that members of The Amex Membership Corporation (AMC) had approved the adoption of the merger agreement between AMC and NYSE Euronext and some subsidiaries.
Preliminary results indicated that the AMC memberships voted 695 to 7 in favor of the transaction. The number of AMC memberships voted in favor of the transaction represented approximately 84 percent of the total AMC memberships outstanding and entitled to vote on this transaction.