Exchange company Nasdaq OMX Group has completed its acquisition of the Boston Stock Exchange (BSE), which it will use to launch a second US equities market. The new entity will be renamed Nasdaq OMX BX, and is expected to launch in Q4 this year. The exchange group first announced its intention to acquire BSE in October last year.
“With Nasdaq OMX BX we will have the ability to offer a second quote within the US equities marketplace, providing our customers enhanced trading choices and price flexibility,” said Chris Concannon, executive vice president of transaction services at Nasdaq OMX. “We will continue to leverage our INET trading system, which runs the largest US equities exchange, for the Nasdaq OMX BX trading platform to give customers yet another fast and efficient market under The Nasdaq OMX Group.”
Upon completion of the transaction, Nasdaq OMX BX will be part of Nasdaq OMX Transaction Services business. Michael Curran, formerly chairman and CEO of BSE, has been named to the Board of Directors for The Nasdaq Stock Market, Nasdaq OMX PHLX, and Nasdaq OMX BX.
As part of the transaction, Nasdaq OMX has acquired a self-regulatory organisation (SRO) licence for trading both equities and options. Nasdaq OMX did not acquire an interest in the Boston Options Exchange (BOX) from the BSE. However, a regulatory services arrangement for the BOX market will remain in place. Nasdaq OMX BX, through Boston Options Exchange Regulation (BOXR), will operate the regulatory services provider to the BOX.