September 2006
Joseph S. Rizzello Elected Chairman of NSX Holdings;
New Board Members Announced
Tuesday, September 26, 2006
CHICAGO, September 26, 2006 - National Stock Exchange (NSXSM) today announced that the Board of Directors of NSX Holdings, Inc., the for-profit holding company resulting from NSX's recent demutualization, has elected Joseph S. Rizzello as its Chairman effective immediately.
Mr. Rizzello has served as Special Adviser to the NSX CEO and Board of Directors since September 2004, immediately following his service as a Director on NSX's Board from January 2002 to September 2004 and a member of NSX's Executive Committee during that period. As Special Adviser, he has been instrumental in the development of NSX's new business strategy.
"A 35-year veteran of the securities industry and one of the chief architects of NSX's new business plan, Joseph will now play an integral role in the plan's implementation," said NSX CEO and President David Colker. "His vision and depth of industry knowledge make him the ideal candidate to lead NSX Holdings at this time of major transformation at NSX and across the securities industry."
Prior to his appointment as Special Adviser to NSX, Mr. Rizzello was Managing Director of Pershing LLC, President of Pershing Trading Company and a member of Pershing's Executive Committee. Before joining Pershing, he was a Principal at Vanguard Brokerage Services (VBS). Earlier in his career, he served as Executive Vice President of Marketing, Business and New Product Development at the Philadelphia Stock Exchange, as well as President of its futures subsidiary, the Philadelphia Board of Trade.
NSX recently announced the September 5 closing of an investment transaction in which Bear Stearns, Bloomberg Tradebook, Citigroup Corporate and Investment Banking, Credit Suisse, Knight Capital Group and Merrill Lynch each separately acquired a minority equity stake in NSX Holdings. The centerpiece of NSX's new business plan is its new state-of-the-art technology platform - NSX BLADESM and NASD/NSX Trade Reporting Facility. The new platform, designed to meet the needs of algorithmic traders, ECNs, agency brokers and OTC market makers, is expected to be launched in the near future.
The following are the directors of NSX Holdings, Inc.:
Joseph S. Rizzello, Chairman, NSX Holdings, Inc.
James M. Anderson, President and CEO, Cincinnati Children's Hospital
David Colker, CEO and President, National Stock Exchange, Inc.
Bruce S. Garland, Principal, Bloomberg Tradebook LLC
Steven J. Keltz, Director and Counsel, Citigroup Corporate and Investment Banking
Peter B. Madoff, Senior Managing Director, Bernard L. Madoff Investment Securities LLC
Jon McConaughy, Managing Director, Credit Suisse First Boston
Aldo Parcesepe, Senior Managing Director, Bear, Stearns & Co. Inc.
James P. Smyth, Senior Managing Director, Knight Capital Group, Inc.
Jarrod S. Yuster, Managing Director, Merrill Lynch & Co., Inc.
The following are the directors of National Stock Exchange, Inc.:
(* New Directors on Exchange Board)
Donald L. Calvin, Chairman, National Stock Exchange, Inc.;
Chairman, International Business Enterprises
James M. Anderson, President and CEO, Cincinnati Children's Hospital
Mary L. Bender, Securities Industry Consultant
Michael Boland, Partner, Johnson, Madigan, Peck, Boland & Stewart
David Colker, CEO and President, National Stock Exchange, Inc.
Mark F. Duffy, CBOE Director, Managing Member, Cornerstone Trading, LLC
* Steven J. Keltz, Director and Counsel, Citigroup Corporate and Investment Banking
Peter B. Madoff, Senior Managing Director, Bernard L. Madoff Investment Securities LLC
Jon McConaughy, Managing Director, Credit Suisse First Boston
* Aldo Parcesepe, Senior Managing Director, Bear, Stearns & Co. Inc.
Glen Shipway, Securities Industry Consultant
* James P. Smyth, Senior Managing Director, Knight Capital Group, Inc.
* Jarrod S. Yuster, Managing Director, Merrill Lynch & Co., Inc.
NSX is the cost-effective provider of exchange services, committed to aligning its interests with those of its customers. Acknowledged for its proven high-performance, low-latency technology, NSX is also a recognized resource for Exchange-Traded Fund (ETF) data. For more information on NSX, visit www.nsx.com.
National Stock Exchange Announces Partnership
Wednesday, September 6, 2006
CHICAGO, September 6, 2006 - National Stock Exchange (NSXSM ) today announced it has received equity investments from six leading Wall Street firms and ECNs.
The firms - Bear Stearns, Bloomberg Tradebook, Citigroup Corporate and Investment Banking, Credit Suisse, Knight Capital Group and Merrill Lynch -- have each purchased an interest in NSX Holdings, Inc., the for-profit holding company resulting from NSX's recent demutualization. Each of these investors separately acquired a minority equity stake, which amounts in aggregate to just over 50% of the voting stock of NSX Holdings. The transaction closed on September 5, 2006.
"We appreciate the commitment we have received from these industry leaders and the confidence it signals in NSX's value in a post-Reg. NMS environment," said NSX Chief Executive Officer and President David Colker. "Concerns about cost and service due to industry consolidation have triggered strong demand for a high-tech, low-cost alternative, and NSX is positioned to assume that role."
Anticipating this rising demand, over the last year NSX has fully demutualized into a for-profit holding company structure, and built a new proprietary state-of-the-art technology platform, NSX BLADESM, which is expected to be launched in the near future. This new business strategy was overwhelmingly endorsed by membership vote in January 2006.
NSX BLADE will offer unprecedented speed, strict price-time priority, and highly competitive exchange pricing. In addition, NSX will provide an order delivery function in NSX BLADE, as well as an NASD/NSX Trade Reporting Facility.
"We believe our new business model will be the alternative the industry is seeking - the biggest tent in which everyone is welcome to trade," Colker said. "In the securities industry, as in any industry, competition drives innovation," said C. Thomas Richardson, Managing Director, U.S. Equities, Citigroup Corporate and Investment Banking. "Today, market structure changes and industry-wide consolidation are dramatically changing the industry landscape, presenting new opportunities for organizations flexible enough to adapt to the changing needs of the investment community. NSX's new business model is a great example of an institution re-inventing itself to best serve the customer."
NSX History
National Stock Exchange, the nation's first all-electronic stock exchange, is the low-cost provider of exchange services. A model of exchange efficiency, NSX has been a driving force for change in the world of securities exchanges, responsible for many industry innovations:
- 1980: NSX replaced its physical trading floor with a completely automated market, becoming the first all-electronic stock exchange in the U.S.
- 1986: NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), which enabled its members to interact electronically with all other markets to get the best possible execution prices for their public customers.
- 1992: NSX pioneered internalization in an electronic, competing specialist exchange environment. This model allowed member firms to provide public customers with lower cost and higher quality executions.
- 1993: NSX was the first exchange to develop a complete electronic order audit trail for regulatory purposes.
- 1998: NSX created the first market data revenue-sharing program, which has saved the industry more than $100 million annually.
NSX is the cost-effective provider of exchange services, committed to aligning its interests with those of its customers. Acknowledged for its proven high-performance, low-latency technology, NSX is also a recognized resource for Exchange-Traded Fund (ETF) data. For more information on NSX, visit www.nsx.com.