ISE forms parent to facilitate acquisitions

NEW YORK, Sept 1 (Reuters) International Securities Exchange Inc., the largest U.S. equity options market, on Friday said it has formed a new parent company, which would give it the framework to make future acquisitions and alliances.

International Securities Exchange Holdings Inc. is the new parent company of its exchange operations, International Securities Exchange, and Longitude LLC -- a platform allowing trading on items such as economic data and energy market statistics -- which is majority owned by ISE.

ISE's chief executive David Krell said in a statement that creation of the holding company structure gives ISE a ''framework for future growth'' and would ''facilitate future acquisitions and strategic alliances.'' ISE is in the process of launching a stock exchange and has this year announced a series of financial partners to take stakes in the new unit, ISE Stock Exchange.

ISE said the corporate restructuring was approved by shareholders. Holders of shares of ISE's Class A common stock automatically became stockholders of ISE Holdings' Class A common stock. The company will continue to trade under the same ''ISE'' ticker symbol.

ISE's shares were down 51 cents at .04 in midmorning trading on the New York Stock Exchange.

REUTERS SBA GC2004