NEW YORK (Reuters) - The Philadelphia Stock Exchange is ready to do a deal and is mulling options, its chief executive said on Tuesday.
"I think the time is right," said CEO Sandy Frucher at the Reuters Exchanges and Trading Summit in New York, when asked about consolidation interest. "I don't think the volume of inquiries and conversation has increased, but I think the intensity has."
The Philadelphia exchange made headlines last month after reports it was discussing a tie-up with top U.S. electronic stock exchange Nasdaq Stock Market Inc. (NDAQ.O: Quote, Profile, Research, Stock Buzz)
So far, both exchanges have declined to comment on the reports, but a source said Philadelphia had spoken to Nasdaq, among others.
Philadelphia is the No. 3 U.S. options exchange, an area that Nasdaq Chief Executive Robert Greifeld has previously identified as a possible target for consolidation.
"When you have six players in a particular market, the world is not generally calling out for a seventh," Greifeld said at the summit, when asked about a possible entrance into options. Greifeld also said he envisioned fewer than seven U.S. option trading platforms.
Profit at the Philadelphia exchange is projected to be in the range of $20 million to $25 million this year, Frucher said, up from $14 million last year.
"Those numbers bounce around," he said, adding he expects to continue to see growth in the options business "for the foreseeable future."
(For more on the Reuters Exchanges and Trading Summit, see ID:nN07328661)
© Thomson Reuters 2008. All rights reserved.
| Autos II | Sep 30 - Oct 01, 2008 | Hotels/Casinos |
| Restructuring | Sep 22 - 26, 2008 | Financial Services/Exchanges |
| Autos | Sep 15 - 17, 2008 | Autos |
| Russia Investment | Sep 08 - 9, 2008 | Country Summits |
| Paper | Aug 20 - 21, 2008 | Manufacturing |
