Following a number of the world’s other major stock exchanges, the American Stock Exchange will pursue demutualization.
The Amex announced today that its board of governors approved a course of action that would begin the process of converting the exchange from a not-for-profit corporation into a for-profit corporation. “This is the initial step in the process of demutualization to position the Amex for future investment opportunities,” it said.
Amex seat owners will have the opportunity to vote on the demutualization plan, which would convert their seats into shares.
“We have been carefully examining the structure of the exchange for months,” Neal Wolkoff, chairman and CEO, said, in a release.
“The board’s approval to take the initial step to demutualize is a significant milestone for the American Stock Exchange. The Amex has undergone a major transformation over the past year, improving its technology and regulatory areas, and the vote to take this course of action will further position the Amex for growth.”