17 October 2017

PHLX woos potential investors

13 July 2005  |  6849 views  |  0 cash_3

Citigroup, Morgan Stanley, Credit Suisse First Boston and UBS Securities are each considering buying a stake in struggling options mart Philadelphia Stock Exchange (PHLX), according to a report by the Wall Street Journal.

Citing people familiar with the matter, the latest WSJ report says the four banks have all held discussions with the PHLX, which is struggling to compete against larger competitors such as the New York Stock Exchange and Nasdaq.

Merrill Lynch and Citadel Derivatives acquired ten per cent stakes in PHLX last month for a rumoured $7.5 million apiece. Both firms also have an option to increase their investments in the future. At the time PHLX said the investments are expected to be the first in a series of strategic investments by securities industry firms designed to grow its business.

PHLX went from a member-owned organisation to a private, for-profit company last year but has failed to boost its business and still lags behind the American Stock Exchange, the Chicago Board Options Exchange and the electronic International Securities Exchange in terms of market share. In stocks, PHLX has less than one per cent of the activity listed on the Nyse.

According to the report, PHLX may also be considering an investment in an electronic exchange or ECN in a bid to compete against Nyse, which is merging Archipelago and Nasdaq which is acquiring Instinet.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Merrill and Citadel take equity stakes in PHLX

Merrill and Citadel take equity stakes in PHLX

17 June 2005  |  8957 views  |  0 comments

Related company news

 

Related company information

Credit Suisse

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.innotribe.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14843 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8145 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7468 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6767 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6112 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job