Lehman Brothers is to establish a floor-based market-making firm on the trading floor of the New York Stock Exchange, the firm announced yesterday. Upon closing, a Lehman Brothers affiliate will have responsibility for 416 NYSE-listed issues including 308 operating companies when it begins operations on 10 December, 2007. The completion of the transaction, which includes the transfer of certain operations, staff and technology of NYSE specialist firm Van der Moolen, is subject to regulatory approvals.
"Lehman Brothers' presence on the trading floor will usher in an exciting new era for the NYSE specialist community and our marketplace," says Duncan Niederauer, NYSE Euronext CEO. "The addition of Lehman Brothers will greatly benefit our listed issuers and the investing public, and we will work with Lehman Brothers and Van der Moolen to ensure a smooth and orderly transition process."
Gerald Donini, head of Americas equities at Lehman Brothers, comments, "This transaction underscores our continued commitment to providing a competitive, transparent, public market that allows clients to choose how to best suit their sophisticated needs. Under current NYSE leadership, floor-based market making has and will continue to evolve. We look forward to partnering with the exchange and our clients to continue to improve market quality. We also greatly look forward to working with the floor-based market makers who will soon join our team."
Niederauer adds: "Specialists help differentiate the NYSE market, contribute to our superior market quality and liquidity, and are integral in times of unusual market stress and volatility. As we continue to successfully introduce new technology and an updated rule set for specialists with approval of the SEC, we expect the specialist role and their market making capabilities to further evolve."