Nyse in talks to buy Amex's stake in SIAC

Nyse in talks to buy Amex's stake in SIAC

The New York Stock Exchange (Nyse) is in talks to buy out the American Stock Exchange's (Amex) one-third interest in the Securities Industry Automation Corporation (SIAC) which is co-owned by the two exchanges.

SIAC runs the computer systems and communications networks that power the two exchanges and disseminates market data.

The possible buy-out by Nyse was referred to in a regulatory filing on its planned merger with pan-European exchange Euronext.

Nyse, which holds a two-thirds interest in SIAC, says it has received a notice stating that Amex intends to "materially decrease its use of SIAC's services".

Nyse says it is currently holding negotiations about the possible purchase of the 33% of shares in SIAC held by Amex although no definitive agreements have yet been reached.

In a research note issued Friday, Patrick Pinschmidt, an analyst at Merrill Lynch, noted: "The key issue here is less about price ... but more about free-hand to expedite transition to [Euronext's] much more efficient technology outsourcing model."

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