Pacific Exchange Okd to Become For-Profit

The Pacific Exchange said it had received approval from securities regulators to convert to a for-profit, shareholder-owned company, matching corporate structures by rival options markets in New York, Philadelphia and Boston.

The Securities and Exchange Commission approved a plan to convert each of 552 membership seats at the fifth-largest U.S. options market to 1,000 shares of PCX Holdings Inc. and a nontransferable right to trade options, the San Francisco-based exchange said Thursday.

The California Department of Corporations, which regulates securities offerings, must approve the plan. It will hold a public hearing June 9 to determine the fairness of the Pacific Exchange’s plan to existing seat holders.