NYX Nyse Euronext

The Securities and Exchange Commission on Wednesday said it would extend until July 1 its review of a plan by NYSE Euronext (NYX) to sell half of its Amex options exchange to a group of Wall Street firms.

The move adds another 45 days to an already lengthy process for the deal, struck with seven banks and trading firms in the fall of 2009, and closely watched by rivals.

Extending the review would give authorities more time to consider the implications of the deal and comments submitted on it, according to a statement from the SEC. NYSE Euronext submitted the plan to regulators in mid-March.

"We appreciate the SEC's efforts in reviewing our innovative proposal and we remain committed to this landmark agreement with our partners," said a spokesman for NYSE Euronext. "We look forward to finalizing the deal as soon as possible."

The idea of the deal is to share ownership in the exchange with some of its biggest users, giving them further incentive to take their options business to the Amex, acquired by NYSE Euronext in the fall of 2008 for $260 million.

Under terms of the deal, Goldman Sachs Group Inc. (GS) and Citadel LLC would each get a nearly 15% stake. Bank of America Corp.(BAC), Citigroup Inc. (C), TD Ameritrade Holding Corp.(AMTD), and UBS AG (UBS, UBSN.VX) would each hold about 5%, with 3% going to Barclays PLC (BCS, BARC.LN).

NYSE Amex would retain 47.2% of the remaining common-interest holdings, with 100% of preferred non-voting interests. No stakeholder will be allowed to hold more than 19.9% of the market, aside from NYSE Amex.

The stakes held by firms could expand or shrink, depending on how much business they are doing at the Amex, and credit will be given for activity going back to October 2009, when the agreement was announced. Each year, available cash will be distributed back to NYSE Amex and the owner-firms.

If stakeholders aren't meeting agreed-upon levels of trade, their interest in the exchange could be diluted, according to terms of the agreement.

Nasdaq OMX Group Inc. (NDAQ), in response to the deal's formal filing, did not oppose the arrangement but asked regulators to allow other exchanges to develop separate incentive programs targeted toward specific customers.

"The best result is not to restrain NYSE Amex, but to allow others to compete by applying the same flexibility proposed in the incentive plan to all fee and rebate-based plans," wrote Nasdaq OMX officials in a letter to the SEC. "Investors will be the ultimate beneficiaries of the greater competition that will result."

Since the deal was agreed more trades have flowed through the Amex systems. Its share of all options contracts bought and sold this month was 13.3%, nearly double its 7% market share at the time NYSE Euronext bought the platform.

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com

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