Lehman Brothers is to establish a floor-based market-making firm on the trading floor of the New York Stock Exchange by acquiring certain assets related to the operations of Van der Moolen Specialists, USA LLC. A Lehman Brothers affiliate will have responsibility for 416 NYSE-listed issues including 308 operating companies when it begins operations on December 10, 2007. The completion of the transaction, which includes the transfer of certain Van der Moolen staff and technology, is subject to regulatory approvals.
"Lehman Brothers is a leader and innovator in global finance whose presence on the trading floor will usher in an exciting new era for the NYSE specialist community and our marketplace," says Duncan L Niederauer, NYSE Euronext CEO. "The addition of Lehman Brothers will greatly benefit our listed issuers and the investing public, and we will work with Lehman Brothers and Van der Moolen to ensure a smooth and orderly transition process."
Gerald Donini, head of Americas Equities at Lehman Brothers, adds: "This transaction underscores our continued commitment to providing a competitive, transparent, public market that allows clients to choose how to best suit their sophisticated needs. Under current NYSE leadership, floor based market making has and will continue to evolve. We look forward to partnering with the Exchange and our clients to continue to improve market quality. We also greatly look forward to working with the floor-based market makers who will soon join our team."
Lehman Brothers will join the roster of NYSE specialist firms that includes: Banc of America Specialist; Bear Wagner Specialists LLC; LaBranche & Co LLC; Spear, Leeds & Kellogg Specialists LLC; and Kellogg Specialist Group, which assumes the operations of SIG Specialists effective 3 December, 2007.