Schwab to Sell Seats on New York Stock Exchange
24 December 2004 - 4:00AM
PR Newswire (US)
Schwab to Sell Seats on New York Stock Exchange SAN FRANCISCO, Dec.
23 /PRNewswire-FirstCall/ -- Following The Charles Schwab
Corporation's sale of its capital markets and trading business on
October 31, 2004 and subsequent agreement to handle trade execution
through a services agreement with UBS Securities LLC, Charles
Schwab & Co., Inc. today confirmed its plans for the sale of
its memberships on the New York Stock Exchange (NYSE). The
brokerage expects to close on the sale of its three NYSE seats
during the first quarter of 2005. Following the sale of those
seats, Schwab will no longer maintain a membership on the exchange.
Shares of the common stock of The Charles Schwab Corporation
(NYSE/Nasdaq: SCH) will remain dually listed on the NYSE and NASDAQ
stock markets. "The Company has had a long and productive
partnership with the NYSE. However, with our exit from the capital
markets arena, we have been reevaluating our memberships on a
number of the exchanges," said Michael Alexander, Senior Vice
President, Trading and Asset Services. "This change will have no
impact on customer order handling; our clients will continue to
receive the same superior trade execution they have come to expect
from Schwab." Through its agreement with UBS, Schwab will maintain
access to the NYSE, and Schwab customers continue to have the
option to route their orders to the NYSE. The decision follows on
the Company's previously announced cost-cutting effort to eliminate
complexity and redundancy across the firm, and reinvest cost
savings back into services for clients. The Federal Reserve Board
remains the primary regulator of the Schwab holding company, The
Charles Schwab Corporation. That status was initiated in 2000 under
the Gramm Leach Bliley Act. The company expects the SEC will
designate the National Association of Security Dealers (NASD) as
Schwab's primary self regulatory organization for the brokerage
business, Charles Schwab & Co., Inc. About Charles Schwab The
Charles Schwab Corporation, through its operating subsidiaries,
provides securities brokerage and financial services to individual
investors and the independent investment advisors who work with
them. With over 7 million individual investor accounts and more
than $1 trillion in client assets, The Charles Schwab Corporation
is one of the nation's largest financial services firms. Schwab
provides a complete range of services and products, including an
extensive selection of mutual funds; financial planning and
investment advice; retirement plans; banking products and services;
and referrals to prescreened independent fee-based investment
advisors. Schwab is also the leading provider of custodial,
operational and trading support for independent fee-based
investment advisors. The corporation's operating subsidiaries
include: Charles Schwab & Co., Inc. (member SIPC), U.S. Trust
Corporation (member FDIC), CyberTrader(R), Inc. (member SIPC), and
Charles Schwab Bank (member FDIC). These companies' Web sites can
be reached at http://www.schwab.com/, http://www.ustrust.com/,
http://www.cybertrader.com/, and http://www.schwabbank.com/,
respectively. (0004-10174) DATASOURCE: Charles Schwab CONTACT: Greg
Gable of Charles Schwab, +1-415-636-5847 Web site:
http://www.schwab.com/
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