|
NASD backs Amex merger
|
 |
April 9, 1998: 2:57 p.m. ET
Approval means proposal will go to membership for May 28 vote
|
NEW YORK (CNNfn) - The National Association of Series Dealers Thursday unanimously approved a definitive agreement to merge with the American Stock Exchange.
The vote comes one day after the American Stock Exchange's board approved the proposal.
Thursday's action means the plan now goes before the full membership of the Amex for a vote at a special meeting set for May 28.. There it must be approved by at least 66 percent, or 576 of the 864 members.
Several structural and rules changes that will occur as a result of the merger also will acquire approval by the Securities and Exchange Commission.
The exchanges first announced a preliminary agreement to merge March 18.
Under the merger plan, the Amex will continue to operate as a specialist-based auction market with its own members and listed companies.
Its equity market operation will be enhanced with a new electronic limit order book allowing investors and market professionals to execute orders automatically from the trading floor. The Amex also will keep its options and derivatives markets.
Frank G. Zarb, chairman and chief executive officer of the NASD, praised the agreement, saying it offers a unique opportunity to deliver added value for the securities industry and investors.
"This historic and innovative agreement is the first major step in creating a 'market of markets' to be built on a global computer network. It is a market alliance unparalleled in technology, expertise, information and execution to meet the needs of investors worldwide," he said.
Once the deal is approved, the Amex will become a wholly-owned subsidiary of the NASD.
|
|
|
|
|
|
Nasdaq
Amex
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
