UPDATE 1-Van der Moolen cancels deal to buy financing company

* Van der Moolen scraps deal to buy part of GSFS

* Cancelled due to markets, drop in Van der Moolen shares

(Adds CEO comment, detail)

AMSTERDAM, March 6 (Reuters) - Dutch broker Van der Moolen Holding (VDMN.AS) said on Friday that it is scrapping plans to buy part of Dutch securities finance company GSFS BV for 43.3 million euros ($54.7 million) in cash and shares.

"As a result of the development of the market price of the Van der Moolen shares in the last few months, the intended participation in GSFS AM and GSA... will not lead to the intended positive impact on the shareholders value of Van der Moolen," Van der Moolen Chief Executive Richard den Drijver said in a statement.

Drijver was referring to the deal, announced in November 2008, for Van der Moolen to buy 49.9 percent of GSFS Asset Management (GSFS AM) and 33.3 percent of Global Securities Arbitrage BV (GSA). Van der Moolen had said at the time that the deal would add to profit in 2009, but it did not provide an updated outlook with Friday's announcement.

The agreement had called for Van der Moolen to pay 14.15 million euros in cash and 29.15 million euros by issuing its own shares over a three-year period.

Since November, Van der Moolen shares have lost 60 percent of their value, and closed trade in Amsterdam at 1.05 euros, down 7 percent on the day.

Van der Moolen returned to profitability in the first quarter of 2008 after seven straight loss-making quarters, having undergone significant restructuring.

It sold its unprofitable New York Stock Exchange specialist market making activities as part of a new focus on the European retail banking market. (Reporting by Reed Stevenson; Editing by Sharon Lindores)