However, the industry should not view the Commission’s decision as a shot across the bow regarding foreign investment in SROs, according to Tyler Gellasch, executive director of the industry organization Healthy Markets Association.
“The structure of the deal and the opacity of the ownership, and accountability, likely made this an easy call for the Commission,” he said. “While all potential deals with foreign investors will receive heightened scrutiny, this one seemed particularly unlikely to withstand that test. Going forward, don’t be surprised to see a private equity buyer materialize for the exchange. Whoever buys it is doing so of the license and opportunity, and certainly not for its current market share and revenue.”
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