Sep 10 2009

Jobs Are Slashed at NYSE's Newest Acquisition

By kyle stock

Nyfix Inc., a maker of trading technology, just sold itself to NYSE Euronext for 95% more than its market value.

The bad news is, 40% of its workers will be jobless when the deal closes in the fourth quarter.

Nyfix, one of the few Wall Street firms that actually is on Wall Street, has filed plans with the New York Labor Department to lay off 71 of its 180 employees in early December.

Nyfix makes most of its money by routing trading orders, particularly from hedge funds and asset managers. The value for NYSE comes in those relationships and the company's technology, not necessarily Nyfix's warm bodies. Analysts expect the Big Board to sew the company's software and trading infrastructure in with its own.

NYSE Euronext declined to comment. A human-resources manager at Nyfix also declined to comment, referring questions to the firm's public-relations department, which did not return phone calls Tuesday afternoon.

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