The National Association of Securities Dealers is prepared to sell the American Stock Exchange to a Chicago-based private equity firm for $110 million, ending a two-year search for a buyer, The Wall Street Journal reports.

The NASD signed a letter of intent last week to sell the nation’s third-largest exchange to GTCR Golder Rauner, the newspaper said. However, the NASD will not keep any of the proceeds of the sale, the Journal said. Instead, the revenue will be used to cover previously agreed upon investments while the remaining portion will remain on the exchange’s balance sheet.

NASD originally purchased Amex back in 1998, but the benefits of the deal never materialized due to intense competition from electronic trading platforms and a grueling bear market. In 2000, NASD opted to put the exchange up for sale in order to focus more closely on regulation of the securities industry.

The deal is still pending approval from the NASD's board of governors, the Amex members and the Securities and Exchange Commission. Provided that the approval process goes smoothly, NASD expects the deal to be completed in the next 30 to 60 days, The Journal said.

No job cuts are expected as a result of the deal.

__

The staff of Money Management Executive ("MME") has prepared this capsule summary based on the report published by the news source to which it is attributed. This news source is not associated with MME, and has not prepared, sponsored, endorsed, or approved this summary.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.