“After more than two years on the block, the embattled American Stock Exchange is close to being sold,” writes Kate Kelly in today’s Wall Street Journal.

“The Amex’s parent organization is expected to complete an agreement as early as this week with the Chicago private-equity firm GTCR Golder Rauner LLC to sell the exchange for approximately $100 million in cash, according to people close to the talks.”

“If it happens, the deal would mean that the Amex was sold for about 20% of what its owner had hoped to fetch for the exchange two years ago — an ignominious end to a difficult period for the Amex, which traces its roots to the 1700s and once one of the nation’s largest and most respected exchanges.”

“Once known as the ‘curb’ market because traders bought and sold securities on the street until the early 1900s, the Amex has seen its image plummet, along with its market share in options and stocks.”

“A 1998 merger with the Nasdaq Stock Market failed to live up to expectations. And despite winning plaudits for developing popular exchange-traded funds (ETFs) like Nasdaq-100 Index Tracking Stock, a stock product informally known as the QQQ that tracks the Nasdaq’s 100 largest nonfinancial companies, the Amex’s market share in the trading of such funds has dropped significantly since their 1999 introduction.”

“People familiar with the talks say GTCR is convinced the Amex can remain a strong contender in the options and ETF markets, and intends to keep the exchange’s current operations and management team intact in the aftermath of a deal. A top priority, said these people, will be to re-establish the Amex’s market share in options trading, which recently slipped to third place from second, behind the International Securities Exchange and the Chicago Board Options Exchange.”

“GTCR officials declined to comment on the proposed purchase, as did the National Association of Securities Dealers, which owns Amex. Any deal ultimately will have to be approved by the Securities and Exchange Commission.”

“Over time, GTCR won’t necessarily stick with the Amex’s trading model, which, like the New York Stock Exchange’s, depends on human traders in a room to execute orders. Most of the rest of the exchange world has shifted to electronic transactions, particularly in the options market, with its global reach.”

“Because of the likelihood that Amex’s trading could be shifted to an electronic forum, GTCR could face an uphill battle in securing the voting control of the exchange now held by firms that hold a seat on Amex.”