Sunday, July 24, 2005
After the New York Stock Exchange (NYSE) completes its acquisition of Chicago-based electronic trading company, Archipelago Holdings within the next 12 months, the impact will also be felt in San Francisco, California as the future of the 123-year-old Pacific Exchange (PCX) becomes murky.
This stems from a deal struck in January of this year, before the NYSE merger, when Archipelago struck a deal worth $83 million to take over operations of the San Francisco stock exchange and its 260 employees. All PCX operations are scheduled to be under Archipelago control by the end of September. Archipelago had planned to maintain the San Francisco operations.
As details were released Thursday of the April NYSE-Archipelago merger to the Securities and Exchange Commission, all Archipelago functions are to be folded into NYSE operations, including the PCX stock and options trading business. The report did not state whether or not the San Francisco employees would be kept after the merger is complete.
Started in 1882 at the San Francisco Stock Market, the Pacific Exchange, along with other regional stock exchanges, has suffered as customers shifted to electronic trading, which bypassed the need for stock exchange services in many instances.