As per mutual agreement, the National Association of Securities Dealers (NASD) will add the American Stock Exchange (AMEX) to its family of companies.
The governing boards of both the NASD and AMEX sanctioned the merger, though final approval is subject to a definitive agreement and approval of the members of AMEX. Additional structural and rule changes will require a thumbs-up from the U.S. Securities and Exchange Commission.
In a joint release, the NASD and AMEX said the combination will be “a win for all concerned,” and that, “Investors can expect more efficient pricing, greater access, faster execution and reduced transaction costs.” AMEX brings its strength in the derivative market and warrants to the NASD.
AMEX-listed shares are traded through a specialist through an auction market, while NASD’s Nasdaq markets are driven by electronic trading through many marketmakers, who keep reservoirs of stock on hand for purchase.
AMEX will operate as an independent subsidiary of NASD, retaining its own board of directors. The board, consisting of four industry directors, four staff representatives and eight public representatives, will designate four members to serve on the NASD’s 27-member parent board.
About 20 mining and exploration companies (including Echo Bay, Getchell Gold, Royal Oak, Golden Star and Bema Gold) list on AMEX; many of them are also listed in Canada. Only a handful of miners are listed on the Nasdaq’s National Market, whereas a larger number of juniors call its Small Cap Market home.
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