NYX Nyse Euronext

Electronic trading company Getco LLC will be the designated market maker for General Motors Co.'s initial public offering at the New York Stock Exchange, expected later this week.

The Chicago-based firm will be tasked with helping facilitate GM's opening price when the auto maker returns to the NYSE after a 16-month absence. The return is expected to occur Thursday. NYSE Euronext (NYX) spokesman Christiaan Brakman confirmed that Getco was selected from among the exchange's five designated market makers, who are generally responsible for buying and selling shares, smoothing trade imbalances and providing liquidity in designated securities in return for incentives paid by the exchange.

During an IPO, the designated market maker plays a role akin to that of an auctioneer, leading the fair-pricing negotiations among the offering's underwriters, floor brokers, and external interest coming into the stock exchange. The discussion usually starts around 9:15 a.m. the day of the offering and can wrap up by the opening or continue for as long as half an hour at times.

Getco, a private market-making firm that uses high-frequency trading, joined the ranks of market makers on the exchange's floor in February, after acquiring 350 securities held by Barclays Capital, of which 234 are listed companies. The firm has 17 employees within its designated market-making unit, Getco Securities.

"NYSE's modernization of the floor has made it possible for Getco to combine the best elements of the traditional floor model with the best elements of today's modern electronic markets," said Todd Abrahall, head of Getco Securities. General Motors did not respond to a request for comment.

Last month, Knight Capital Group Inc. (KCG) became the second major electronic trading firm to expand its role at the exchange by agreeing to buy the market-making units of Kellogg Capital Markets.

General Motors plans to issue 365 million shares totaling 24% of the company, according to plans laid out earlier this month. The federal government currently holds a majority stake in the auto maker but expects its stake will drop to around 35% after the IPO from 61%.

-By Kristina Peterson, Dow Jones Newswires; 212-416-2917; kristina.peterson@dowjones.com

--Jacob Bunge and Sharon Terlep contributed to this article.

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2024 a Ago 2024

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Ago 2023 a Ago 2024