National Stock Exchange Files With SEC to Halt Operations

The National Stock Exchange, an equity trading venue with about 0.2 percent of U.S. volume, has filed with the Securities and Exchange Commission to cease operations on May 30, according to its website.

Closing the market, also known as NSX, would cut the number of public stock exchanges in the U.S. to 11, and would come one month after CBOE Stock Exchange closed. That venue, which is partially owned by CBOE Holdings (CBOE) Inc., owns NSX.

“The exchange is taking this action following a decision by the board of directors of CBSX to cease trading activity on NSX, if the NSX’s trading volume does not materially increase or a purchaser does not emerge,” NSX said in an informational circular today.

David Harris, chief executive officer of NSX in Jersey City, New Jersey, confirmed the filing, saying by phone that it was “a step in the process towards preparing to cease operations, even as we grow our business and seek new owners.”

NSX saw 13.4 million shares change hands yesterday, about 0.2 percent share of the market, according to data from Bats Global Markets Inc. The exchange this month changed its pricing structure to charge both sides of a trade a fee for securities priced $1 or more, a departure from other public venues that usually charge one side and pay a rebate to another.

NSX’s closing would leave just one public exchange, Chicago Stock Exchange Inc., that isn’t owned Bats, Nasdaq OMX Group Inc. or IntercontinentalExchange Group Inc.

To contact the reporter on this story: Sam Mamudi in New York at smamudi@bloomberg.net

To contact the editors responsible for this story: Nick Baker at nbaker7@bloomberg.net Chris Nagi

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