The Philadelphia Stock Exchange confirmed press reports that it plans to close its equity-trading platform and become an all-electronic exchange.
The exchange said it would switch over to an electronic exchange in order to conform with the SEC requirements under Regulation NMS. In a statement, the exchange said it's confident that "most of our members will be able to make the transition and be able to conduct their business electronically."
Traders will use the PHLX XL electronic trading platform to match buy and sell orders.
Recently the PHLX has attracted investments from leading Wall Street firms that want an alternative to the duopoly created by the NYSE-Archipelago and Nasdaq-INET mega mergers.
Last June, PHLX announced that Merrill Lynch and Citadel Derivatives were each acquiring a 10 percent equity stake in the exchange. In August, the exchange announced that Morgan Stanley was acquiring a 10 percent equity stake, while Citigroup, Credit Suisse, First Boston and UBS were each acquiring five percent equity stakes.
The PHLX, founded in 1790, is one of the oldest stock exchanges in the U.S. It trades 2,000 stocks, over 1,926 equity options and 25 sector index options and currency options and futures.