NEW YORK (
signed a definitive agreement to sell its
New York Stock Exchange
specialist business for $25 million to
LaBranche said the sale would free up $76 million in capital related to the designated market-maker operations. The company will record a charge of $69.7 million from the sale and said it would record a fourth-quarter loss of $72.5 million, or $1.38 a share.
Following this sale, which is expected to be completed by the end of January, LaBranche will be left with its market-making operations in exchange-traded funds, equity options, foreign exchange options and futures and an institutional brokerage which made up a majority of its revenue since 2007, LaBranche said in a statement.
The acquisition enhances Barclays' position as the leading market maker on the NYSE following its acquisition in March 2009 of the market-maker rights of Bear Wagner Specialists.
The number of designated market makers has been on a decline on the NYSE floor, where an estimated 17% of daily NYSE stock trades now takes place, the
Wall Street Journal
Shares of LaBranche rose $1.04, or 37.4%, to $3.82 in after-hours trading Wednesday.