The Chicago Stock Exchange Inc. is selling minority stakes to a handful of brokerage firms.

The exchange, and its parent company CHX Holdings Inc., announced that they have agreed to the terms of transactions with equity investors Bank of America Corp.; Bear Stearns; E*Trade Financial Corp.; and Goldman, Sachs & Co., that will result in a total investment of US$20 million, in exchange for minority equity stakes in CHX Holdings. Each firm will also get a voice on the board of directors following closing, which is scheduled for this summer, pending necessary regulatory and stockholder approvals.

The CHX said it will leverage the technology, operational knowledge and expertise of its investors to enhance its electronic trading capabilities, improving the exchange’s ability to compete in the rapidly changing markets.

Valerie Jarrett, CHX chairman, said, “This transaction represents an endorsement of the exchange’s strategic plan to leverage existing volume and connectivity, and to integrate a state of the art electronic trade matching engine in order to attract significant new business. We welcome these key industry leaders as shareholders and we are confident that they will play a vital role in increasing shareholder value while we continue to serve the investing public.”

CHX CEO, Dave Herron, added, “We believe that this is an ideal blend of investors with ability to bring together retail, institutional and professional trading activity. Throughout the negotiations with each investor, we have developed a shared vision of the markets and the significant role that the CHX will play in the highly automated U.S. equity-trading environment.”