Electronic Exchanges

The Internet and the development of electronic commerce are rapidly reshaping the electronic marketplace. Sullivan & Cromwell has been involved in some of the most cutting edge issues on this new frontier.

Recent highlights include representation of:  

Archipelago Holdings, Inc.

• in its $10.5 billion merger with the New York Stock Exchange (NYSE)—the largest-ever merger among securities exchanges (2006);
• in its acquisition of PCX Holdings Inc. (2006);
• in its $145.6 million common stock offering and IPO and the related conversion of Archipelago’s predecessor company from a limited liability company to a corporation (2004); and
• in its merger of equals with REDIBook ECN (2002).

Cantor Exchange

• Cantor Fitzgerald in connection with the establishment and registration of Cantor Exchange, the only exclusively electronic futures exchange in the United States. S&C also represented Cantor Exchange and eSpeed in connection with the first block trading program implemented by a U.S. futures exchange.

Chicago Board Options Exchange

• in developing a futures exchange and in a joint venture with the Chicago Mercantile Exchange and the Chicago Board of Trade in establishing a joint exchange for the trading of single stock futures.

Chicago Climate Exchange

• in its agreement with the International Petroleum Exchange (IPE) to trade European emissions credits on IPE’s electronic platform in London.

Enron Online

• UBS AG in its acquisition of the electricity and gas online trading division of Enron (2002).

IntercontinentalExchange, LLC (ICE)

• in its $1.7 billion acquisition of the New York Board of Trade (NYBOT) (2007); and
• in its merger with International Petroleum Exchange PLC (IPE) (2001).

Nasdaq Stock Market, Inc. (NASDAQ)

• the financial advisor to NASDAQ in its $1.88 billion acquisition of Instinet Group Incorporated, L.P. (2005).

NYSE Group Inc.

• the financial advisor to NYSE in NYSE’s $10.2 billion acquisition of Euronext (Netherlands)—creating the world’s first transatlantic exchange (2007).

TheMuniCenter

• a consortium consisting of Salomon Smith Barney, Morgan Stanley and Merrill Lynch in connection with the formation of TheMuniCenter, a web-based exchange that will let institutional investors purchase and sell municipal securities online.