Chicago’s Archipelago Holdings Inc. is selling its brokerage firm to Order Execution Services Holdings Inc. of Princeton, N.J.

Archipelago Holdings has operated Archipelago Brokerage Services LLC as an introducing broker. It provides broker/dealer customer access to its online stock exchange, ArcaEx. Order Execution Services Holdings is the parent company of Order Execution Services LLC, an independent introducing and agency broker/dealer.

“The sale of the Archipelago brokerage subsidiary was obligated by an order of the Securities and Exchange Commission as a condition to Archipelago’s acquisition of the Pacific Exchange Inc., in September 2005,” said Mike Cormack, Archipelago’s president.

“We are confident that customers previously served by Archipelago will be well served under the growing umbrella of OES,” he said. “As a part of OES, ABS Brokerage Services customers will be the beneficiaries of enhanced connectivity and customer service.”

The transaction, which is subject to regulatory approvals, was executed on December 23, 2005 and is expected to close in the first quarter of 2006. Archipelago Brokerage Services will be renamed ABS Brokerage Services. Terms of the acquisition were not disclosed.