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By BridgeNews
Chicago--May 10--The Securities and Exchange
Commission has approved the demutualization
plan submitted by the Pacific Exchange, making
the " P-Coast" the first for-profit stock
exchange.
* * *
"I am delighted to receive the SEC's
endorsement for our proposal," said Philip DeFeo,
PCX chairman and CEO. "Demutualization is
critically important to our ability to adapt to
emerging market conditions and remain a vibrant
institution. We need a new corporate structure,
a new business model to carry us forward. This
decision provides that platform."
The PCX plan separates ownership of the
exchange from access to the equities trading
floors and systems of the exchange. It
establishes PCX Equities Inc. as a new
corporation with its own board of directors.
Under the plan, equity trading permits will
replace exchange seats as the means for
individuals and firms to trade on the Los Angeles
and San Francisco trading floors.
In April, the exchange announced plans to align
with Archipelago to create a fully electronic
stock market for stocks listed on the New York
and American stock exchanges and the Nasdaq.
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