Nasdaq Inc. says it is buying three options exchanges from Deutsche Borse Group for $1.1 billion to make its business more efficient and expand its offerings.
The New York company said Wednesday it is buying International Securities Exchange, which operates ISE, ISE Gemini and ISE Mercury. The three exchanges host more than 15 per cent of the trading in U.S. options, which are contracts that let a person buy or sell a security or other asset at an agreed-upon price.
As part of the deal, Nasdaq will gain an additional 20 per cent stake in The Options Clearing Corp., giving it 40 per cent of the world’s largest equity derivatives clearing corporation.
Nasdaq expects to save at least $40 million a year within 18 months of closing the deal.