Archipelago and the Pacific Exchange will create a fully electronic national stock exchange for the stocks of the New York Stock Exchange, American Stock Exchange and Nasdaq markets. Once the definitive agreement has been reached and SEC approval given, electronic communications network Archipelago will be the equity marketplace for the Pacific Exchange, which will take an equity stake in Archipelago and join its board.
The Pacific Exchange is the fourth-largest active stock exchange in the United States, trading more than 2,500 stocks, bonds and other securities. Its equities volume averages 23 million shares per day, while more than 50 million shares per day were traded on Archipelagos ECN in February.
Financial terms of the agreement were not disclosed.