TSX Group Inc. announced Wednesday that it has entered into an agreement to purchase 4.85% of Archipelago Holdings, LLC from a subsidiary of National Broadcasting Company, Inc.

Archipelago owns and operates The Archipelago Exchange (ArcaEx), a top three player in the U.S. over-the-counter (Nasdaq-listed) market by volume and an increasingly significant venue for trading NYSE and Amex-listed securities.

In July to date, ArcaEx has reported handling over 25% of Nasdaq-listed and 4% of NYSE and Amex-listed shares in the U.S. market, and has experienced record days this year with volumes as high as 730 million shares.

In a statement TSX Group said the investment would be consistent with its corporate strategy, which includes geographic expansion and increasing its share of interlisted trading.

TSX Group said the ArcaEx’s trading model is very similar to the Toronto Stock Exchange and TSX Venture Exchange. The companies are also exploring opportunities to serve their common customers more effectively on a North American basis.

Completion of the purchase is subject to approval by Archipelago’s board of managers and 80% of its Class A members.

If approved the deal is expected to close in third quarter of 2003, at which time the purchase price will be revealed.

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