Equity Firm Is Acquiring American Stock Exchange

The nation’s No. 3 stock market is getting a new owner.

GTCR Golder Rauner, a Chicago-based private-equity firm, agreed Monday to buy the American Stock Exchange from the National Assn. of Securities Dealers for about $110 million.

GTCR, which manages more than $5 billion, reckons it can return the exchange to profitability by introducing new products, said Collin Roche, a principal at the firm.

The Amex, which was purchased by the NASD (parent of the Nasdaq market) in 1998, has seen its market share in stocks and in option contracts erode over the years. But it still dominates trading of its newest products, exchange-traded mutual funds. Amex lists 122 out of 130 U.S. ETFs.

Roche said the Amex is “pretty far along in improving its technology and services for investors.” He said it also has appeal because, like the New York Stock Exchange, it has a “franchise in auction-based systems that have worked very well.”

The deal must be approved by regulators.

The NASD has poured more than $600 million into the Amex to develop new technology and prop up seat prices for its members.

GTCR overcame a merger bid for the Amex from the Chicago Board Options Exchange, which was trying to bolster its flagging revenue, people familiar with the offer said.