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Intercontinental Exchange's NYSE to Buy 131-year Old NSX
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Intercontinental Exchange, Inc.’s (ICE - Free Report) unit, The New York Stock Exchange (NYSE), is set to acquire the nation’s smallest exchange, National Stock Exchange, Inc (NSX). The deal, announced on Wednesday, is expected to close in first-quarter 2017.
Terms of the deal remained undisclosed. Intercontinental Exchange stated in its release that the acquisition will not have any material financial impact. The company also said that it would halt NSX’s plans to cease trading on Friday.
The acquisition will provide a fourth U.S. exchange license to the NYSE and will be distinct from its other three listings exchanges – NYSE, NYSE MKT and NYSE Arca Equities. While these three exchanges have market models for corporate and ETP issuers, NSX may facilitate the NYSE in trying new models focused on speed or pricing.
Intercontinental Exchange noted, “The NYSE will engage with NSX members, buy-side participants and retail brokerage firms before finalizing operational plans for NSX.”
A report by the Wall Street Journal cited an emailed statement by the NYSE President, Tom Farley, saying, “NSX will continue to operate as a trading-only venue serving market participants’ needs as they evolve.”
Established in 1885, as the Cincinnati Stock Exchange, NSX became a fully electronic stock exchange in 1980. Later, in 1995, it moved operations to Chicago and renamed itself as National Stock Exchange, Inc. in 2003. In 2007, NSX moved to Jersey City. The exchange has witnessed change of its owners several times. In Dec 2011, CBOE Holdings, Inc.’s (CBOE - Free Report) unit – CBOE Stock Exchange – had acquired NSX, while, in 2015, NSX was acquired by National Stock Exchange Holdings, Inc.
Notably, after suspending trading in May 2014 due to low trading volumes, NSX resumed trading in Dec 2015. According to data from Bats Global Markets , NSX has a 0.02% market share of the total U.S. equities volume.
Shares of Intercontinental Exchange have gained 13.8% year to date underperforming the 24.0% growth for the Zacks categorized Securities Exchanges industry. However, we see a potential upside for the stock, given the company’s strength in its energy franchise, increasing recurring market data revenues and expense management.
Intercontinental Exchange currently carries Zacks Rank #3 (Hold).
A better-ranked stock in the finance space includes LegacyTexas Financial Group Inc. . Over the last 60 days, the Zacks Consensus Estimate for the current year increased 7.7% to $2.09 and advanced 6.5% to $2.31 for 2017. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Intercontinental Exchange's NYSE to Buy 131-year Old NSX
Intercontinental Exchange, Inc.’s (ICE - Free Report) unit, The New York Stock Exchange (NYSE), is set to acquire the nation’s smallest exchange, National Stock Exchange, Inc (NSX). The deal, announced on Wednesday, is expected to close in first-quarter 2017.
Terms of the deal remained undisclosed. Intercontinental Exchange stated in its release that the acquisition will not have any material financial impact. The company also said that it would halt NSX’s plans to cease trading on Friday.
The acquisition will provide a fourth U.S. exchange license to the NYSE and will be distinct from its other three listings exchanges – NYSE, NYSE MKT and NYSE Arca Equities. While these three exchanges have market models for corporate and ETP issuers, NSX may facilitate the NYSE in trying new models focused on speed or pricing.
Intercontinental Exchange noted, “The NYSE will engage with NSX members, buy-side participants and retail brokerage firms before finalizing operational plans for NSX.”
A report by the Wall Street Journal cited an emailed statement by the NYSE President, Tom Farley, saying, “NSX will continue to operate as a trading-only venue serving market participants’ needs as they evolve.”
Established in 1885, as the Cincinnati Stock Exchange, NSX became a fully electronic stock exchange in 1980. Later, in 1995, it moved operations to Chicago and renamed itself as National Stock Exchange, Inc. in 2003. In 2007, NSX moved to Jersey City. The exchange has witnessed change of its owners several times. In Dec 2011, CBOE Holdings, Inc.’s (CBOE - Free Report) unit – CBOE Stock Exchange – had acquired NSX, while, in 2015, NSX was acquired by National Stock Exchange Holdings, Inc.
Notably, after suspending trading in May 2014 due to low trading volumes, NSX resumed trading in Dec 2015. According to data from Bats Global Markets , NSX has a 0.02% market share of the total U.S. equities volume.
Shares of Intercontinental Exchange have gained 13.8% year to date underperforming the 24.0% growth for the Zacks categorized Securities Exchanges industry. However, we see a potential upside for the stock, given the company’s strength in its energy franchise, increasing recurring market data revenues and expense management.
Intercontinental Exchange currently carries Zacks Rank #3 (Hold).
A better-ranked stock in the finance space includes LegacyTexas Financial Group Inc. . Over the last 60 days, the Zacks Consensus Estimate for the current year increased 7.7% to $2.09 and advanced 6.5% to $2.31 for 2017. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>