By Nandini Sukumar and Matthew Leising
Oct. 2 (Bloomberg) -- Nasdaq Stock Market Inc., the second- biggest U.S. equity market, plans to buy the money-losing Boston Stock Exchange for about $61 million to expand trading and enter the clearing business.
The acquisition doesn't include the Boston Options Exchange, which has entered talks to sell a majority stake to Montreal Exchange Inc., owner of Canada's derivatives market. The Montreal market, already the Boston Options Exchange's largest shareholder, said in a statement it could boost its ownership to 53.2 percent from 31.4 percent.
Exchanges worldwide have pursued more than $65 billion of purchases and ventures since 2005, according to Bloomberg data, as marketplaces seek to meet demand for low-cost electronic trading in securities and derivatives across time zones. Nasdaq, along with Borse Dubai, agreed last month to buy Nordic exchange OMX AB for about 32 billion kronor ($4.89 billion).
``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 this industry,'' Boston Stock Exchange Chairman Michael Curran said in an e-mailed statement today.
With its purchase, Nasdaq will gain a second venue for trading, allowing brokerages to execute transactions more easily by posting quotes on both markets. The acquisition will also give Nasdaq control of the regulatory arm of Boston Options Exchange as it prepares to enter the faster-growing business of trading equity derivatives.
Nasdaq to Buy Boston Stock Exchange for $61 Million (Update5) - Bloomberg, 02.10.2007