Chicago, February 9, 2005 â The US Securities and Exchange Commission (SEC) has approved the demutualization plan set forth by the Chicago Stock Exchange (CHX) last November. The demutualization takes effect today.
In this demutualization transaction, the CHX has effectively changed its organizational structure from a not-for-profit, non-stock corporation owned by its members to a wholly owned subsidiary of the holding company, CHX Holdings, Inc. CHX members, who have received shares of common stock of the holding company in exchange for their CHX memberships, are now stockholders of the new, for-profit, stock corporation. Those members who were qualified to trade on the Exchange at the time of the demutualization have received trading permits giving them continued access to the Exchangeâs trading facilities.
Valerie Jarrett, CHX Chairman, said, "We are pleased with the SECâs recognition of our demutualization plan. The CHX board, along with our newly minted stockholders, have taken a critical look at the future of this organization and have moved proactively in order to remain a major competitor in the National Market System."
Dave Herron, CHXâs Chief Executive Officer, commented, "Taking the steps towards demutualization signals the commitment of CHX stockholders to keep CHX as a vibrant market for investors everywhere. With the new organizational structure, we are confident that CHX is positioned to take on the challenges inherent in a rapidly changing marketplace."
Andrew Davis, CHX Vice-Chairman, said, "This historic change takes CHX off the bench and into a very exciting game. I have no doubt that we will create shareholder value while we continue to serve the investing public."
The Chicago Stock Exchange was founded May 15, 1882. The CHX is a strong force for competition to all U.S. markets. The CHX trades more than 3,500 NYSE, AMEX, NASDAQ and CHX-exclusive issues.