--Agrees to acquire certain assets related to Van der Moolen Operations, Including Staff and Technology, and Responsibility for 416 NYSE-Listed Issues--
Lehman Brothers to Form New Market Making Firm on NYSE Trading Floor
NEW YORK, Dec. 4, 2007 – Lehman Brothers will establish a floor-based market making firm on the trading floor of the New York Stock Exchange, the world’s leading equities marketplace and a subsidiary of NYSE Euronext (NYX), by acquiring certain assets related to the operations of Van der Moolen Specialists, USA LLC. Upon closing, 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," said 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, said, "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."
Mr. Niederauer added: "Specialists help differentiate the NYSE market, contribute to our superior market quality and liquidity, and are integral in times of unusual market stress and volatility. As we continue to successfully introduce new technology and an updated rule set for specialists with approval of the SEC, we expect the specialist role and their market making capabilities to further evolve."
Lehman Brothers will join the roster of NYSE specialist firms that include: 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 December 3, 2007.
More about NYSE Specialists
NYSE specialist firms and professionals perform essential functions in their specifically allocated securities:
Manage the auction process and ensure fair, orderly markets for assigned securities.
Execute orders for floor brokers.
Serve as catalysts between brokers with buy and sell orders.
Provide capital to ensure liquidity for buyers and sellers when necessary.
Stabilize prices to cushion temporary imbalances and to avoid unreasonable price variations.
Specialists also serve as an information resource to their listed companies.
For more information on specialists, go to: www.nyse.com/equities/nyseequities/1167954368183.html.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007. NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $30.3 trillion/€21.3 trillion total market capitalization of listed companies and average daily trading value of approximately $139 billion/€103 billion (as of September 30, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's results to differ materially from current expectations include, but are not limited to: NYSE Euronext's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2006 ("document de référence") filed with the French Autorité des Marchés Financiers (Registered on June 6, 2007 under No. R.07-0089), 2006 Annual Report on Form 10-K, as amended, and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.