New York Stock Exchange owner Intercontinental Exchange buys Chicago Stock Exchange

The owner of the New York Stock Exchange has agreed to acquire the Chicago Stock Exchange.

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has agreed to buy the Chicago Stock Exchange (CHX) for a reported $70m (£50m), although the two sides did not disclose terms.

The deal comes after a potential approach from a Chinese-led investor group was blocked by the US Securities and Exchange Commission (SEC).

Read more: CME Group agrees deal to acquire Michael Spencer’s Nex for £3.9bn

Matthew Frymier, chair of CHX Holdings, said: “After an in-depth review of strategic alternatives for CHX, we believe this transaction is clearly in the best interests of CHX stockholders and positions the organisation well going forward.”

The deal is expected to close in the second quarter of 2018, depending on regulatory approval.

The president of CHX John Kerin said: “ICE is a proven innovator in the exchange space and we are looking forward to joining its family of exchanges.”

Read more: Intercontinental Exchange ups stake in Euroclear

In 2016 ICE decided against a bid for the London Stock Exchange (LSE), which was then in talks with Germany’s Deutsche Boerse, citing worries around Brexit as one of the reason for pulling back.

There was also speculation that ICE may intervene in Chicago Mercantile Exchange’s (CME) approach for London’s Nex Group, however that deal was agreed last month for £3.9bn.

In February ICE increased its stake in Euroclear, Europe’s biggest settlement house for securities, to 10 per cent.

It first bought a €275m (£193m) stake in Euroclear from the Royal Bank of Scotland in October.