Consolidation in the trading business continues, with news that the NYSE Euronext is acquiring NYFIX, and Nasdaq OMX is in talks about a strategic alliance with Brazil’s Bovespa.

The NYSE Euronext said Thursday that it has entered into a definitive agreement to acquire, through its subsidiary NYSE Technologies, Inc., the trading technology firm, NYFIX, Inc. in an all-cash deal worth approximately US$144 million.

The boards of the various firms have approved the acquisition, which is subject to approval by NYFIX shareholders and customary regulatory approvals. The transaction is expected to close in the fourth quarter and to be accretive to NYSE Euronext 2010 earnings, excluding one-time deal and restructuring costs.

“The NYFIX FIX Division complements our strategic corporate goals and technology business, and expands our points of connectivity with customer trading communities,” said Michael Geltzeiler, executive vice president and chief financial officer, NYSE Euronext. “There are natural synergies and efficiencies that will be realized both in terms of costs and tax benefits and we believe this transaction will benefit our customers and shareholders.”

Stanley Young, chief executive officer of NYSE Technologies and co-CIO, NYSE Euronext, added, “The synergies will be particularly apparent to the pre-trade buy- and sell-side communities, which will benefit from a broad combination of technology assets and connections for efficient end-to-end transaction processing. We look forward to welcoming the NYFIX community to NYSE Euronext.”

At the same time, the Nasdaq OMX Group, Inc. and BM&F BOVESPA announced that the two firms are initiating exclusive discussions for the next 60 days with the purpose of establishing a possible strategic, commercial and technological partnership.

The firms said that the possible partnership may include: the development of an order routing system between the exchanges in order to allow international investors to trade on both exchanges; an agreement to allow the BOVESPA to license Nasdaq products and services, such as investor relations services, to Brazilian companies; a market data distribution agreement; and, technology cooperation opportunities.

IE