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Nasdaq Stock Market will buy the Philadelphia Stock Exchange for some $650M in cash, according to reports citing people close to the deal. Sources said Nasdaq beat out NYSE Euronext and other bidders for the oldest securities exchange in the U.S., which operates the third-largest U.S. equity options market with about 15% of its trades. According to the reports, Nasdaq will pay for the purchase with funds raised from the recent sale of its 30% stake in the London Stock Exchange. It's believed a deal has been in the works for months. The Wall Street Journal reported that terms were agreed upon late Tuesday and will be announced Wednesday morning. The Journal speculated that Nasdaq may move to close trading on the Philly's trading floors since the electronic exchange, in the past, has criticized floor trading as inefficient. The two exchanges had no comment. Nasdaq recently announced plans to buy the Boston Stock Exchange and is planning a merger with Europe's OMX AB.

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Source: Nasdaq to Buy Philadelphia Stock Exchange - Reports