Boston Stock Exchange Announces Plans to Demutualize.Planning & Execution Led the Way BOSTON -- The Boston Stock Exchange The Boston Stock Exchange (BSE) is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834. On October 2nd, 2007 Nasdaq agreed to acquire BSE for $61 million. (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). ) announced today that it will restructure by demutualizing. The process will convert the Boston Stock Exchange to a for-profit entity. "We don't think of demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. as a means to an end, but rather planning and execution has been our focus to successfully bring products and services to the market," said Mike Curran Mike Curran (born April 14, 1944 in International Falls, Minnesota, United States) is a retired ice hockey goaltender. He led the United States to a surprising silver medal at the 1972 Winter Olympics after representing the USA at the 1969,1970 and 1971 Ice Hockey World , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Boston Stock Exchange. "The BSE has always been an innovator and incubator with a eI172 year-old start-up' mentality. Demutualization will now help to support our long-term strategy." The Boston Stock Exchange has focused on building a new technology platform in anticipation of Reg NMS See NetWare Management System. and its entry into the National Market System. The technology allows for regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. to be built into the all-electronic platform. During this time, many other exchanges focused on completing the demutualization process. We have watched the recent wave of demutualization by Exchanges and have learned from each one so that we come to this process with an excellent plan in place," said Steve Barrett, vice chairman of the Boston Stock Exchange. "Recent regulatory changes have created a level playing field See net neutrality. in which the BSE can be an active and nimble participant in the national market structure." The Exchange will shift from a member-owned organization to a wholly-owned subsidiary of the holding company (BSE Holdings Inc.). As part of the demutualization, the Exchange will be owned by its stockholders. The current members of the BSE will receive shares of common stock of the new holding company in exchange for their membership. The Boston Stock Exchange expects the demutualization to be complete in 2007. "As a long-time member, I am excited for the demutualization," said Art Hogan of Jefferies & Co., a member representative of the Board. "The new structure will allow for the continued focus on the customer while opening new opportunities for innovation in this rapidly changing environment." About the Boston Stock Exchange Founded in 1834 as the third oldest exchange in the U.S., the Boston Stock Exchange (BSE) has, from its beginnings, played a vital role as a leading regional exchange within the strongest capital market system in the world. Today, the BSE offers exceptional market quality, innovative all-electronic technology and outstanding customer service to the national financial community. |
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