New Electronic Stock Market Forming

FRAMINGHAM (03/15/2000) - Archipelago LLC, a trading network that electronically matches buyers and sellers of stocks, is partnering with the Pacific Exchange to create an all-electronic stock market.

The market will electronically match buyers and sellers of stocks that are listed on the New York Stock Exchange, the Nasdaq Stock Market and the American Stock Exchange, according to a press release from the Pacific Exchange, which is the nation's fourth-largest stock market in terms of activity.

Under the agreement, Chicago-based Archipelago will operate the Pacific Exchange's equity market. The entity will operate under the self-regulatory authority of the Pacific Exchange.

The Pacific Exchange will also take an equity stake in Archipelago and will join Archipelago's board. Financial terms of the transaction were not disclosed.