The PHLX got bought out this week by NASDAQ for over $650 Million (they bought out the Boston Exchange last month for $61 Million). http://biz.yahoo.com/ap/071107/nasdaq_philadelphia_exchange.html?.v=8 Although the AMEX is not nearly as strong as the PHLX in options liquidity, it does have a viable option market and real estate (the own the whole building where they are housed) that could make sense for a buyer to buy them up. I have heard anecdotally that seats on the AMEX are leased for next to nothing ($1k a month) these days because there is nothing to do there. Maybe now is a good time to buy a seat? Any former or current AMEX guys on ET? John
AMEX used to be owned by the NASDAQ but freed themselves in 2004 after 6 yrs. Don't thinkthe NASDAQ will revisit that anytime soon. NYSE has never expressed an interest in owning their poorer cousin. If their option business were more relevant like it was yrs ago, they would be good for the CBOE, but the AMEX is no threat to them.
I think an international exchange will scoop up the AMEX (most likely the LSE). Whether that will pass regulatory scrutiny is anyone's guess, but it will add interest nevertheless. Anyone know what is going down there in terms of lease rates? Purchase price?
No one wants the AMEX. They are an antiquated exchange with fare too much overhead for their small amount of market share. On the flip side, the PHLX is the #3 options exchange, compared to #5 for the AMEX. They are also a completely electronic options exchange, so they have minimal overhead. PHLX makes much more sense. Anyone who buys the AMEX for their options market isn't playing with a full deck?