Archipelago to Sell Wave Unit

Archipelago Holdings

, the owner and operator of the Archipelago Exchange, agreed to sell its broker unit Wave Securities to

Merrill Lynch

(MER)

.

The sale of Wave Securities was required by the

Securities and Exchange Commission

as part of Archipelago's acquisition of the Pacific Exchange last September. Archipelago is in the process of merging with the

New York Stock Exchange

.

Financial terms of the Merrill deal weren't disclosed. Archipelago expects to close the transaction in the first quarter.

"Wave Securities has played an important and unique role in the evolution of Archipelago from an ECN to a full-fledged exchange," Archipelago said in a press release Monday. "With Merrill Lynch, Wave Securities will be well-positioned to serve the growing needs of its institutional clients."