Philadelphia Stock Exchange (PHLX) seat holders approved a
plan for demutualisation last Tuesday, a move that will shift
the exchange from a member-owned organisation to a
Seat owners voted 330 to 59 in favour of the plan, which now
goes before the general membership for a vote on Tuesday. A
total of 437 members, some of which are the same seat owners
who just voted, will be eligible to cast ballots. A majority is
needed to push the demutualisation plan through. If members
vote in favour of the plan, the final step in the process will
involve securing approval from Securities and Exchange
Commission (SEC) following a public notice and comment period.
PHLX expects the SEC approval during the first quarter of 2004.
An exchange spokesperson said that, while it is demutualising,
it has no plans to pursue a public float.
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