Financial Services
NYSE to Wield Sharp Ax With Amex: Report
TSC Staff
05/05/08 - 09:31 AM EDT
NYSE Euronext(NYX Quote - Cramer on NYX - Stock Picks) could lay off three quarters of the American Stock Exchange when the exchanges complete their merger later this year, according to The Wall Street Journal.
The $260 million, all-stock deal, reached in January, is expected to be completed in the third quarter. According to the Journal, NYSE is expected to keep only about 100 to 120 of Amex's 380 employees.
Amex's traders and brokers who work on the exchange's stock, options and exchange-traded funds floors would not be affected by he cuts, according to the paper.
NYSE is expected to report first-quarter earnings Tuesday. Rival exchanges, including CME Group(CME Quote - Cramer on CME - Stock Picks), Nymex Holdings(NMX Quote - Cramer on NMX - Stock Picks) and InterContinental Exchange(ICE Quote - Cramer on ICE - Stock Picks) have reported soaring trading volumes when they reported in recent weeks, due to the market's first-quarter volatility.