Van der Moolen Holdings NV said Tuesday its Van der Moolen Specialists USA LLC unit will slash about 30 percent of its work force, with expected cost savings of about US$4.5 million (euro3.47 billion) a year.

The brokerage could not immediately say the number of jobs to be cut.

The action comes as the New York Stock Exchange moves from the traditional open-outcry system to electronic trading. The transition in trading methods will take effect Tuesday.

“This is a difficult decision, but one which is necessary for VDMS due to implementation of the NYSE Hybrid market and more automation at the point of sale” said Richard E. den Drijver, chief executive of Van der Moolen Holding NV.

Specialists run the open-outcry auctions on the floor of the NYSE, matching buy and sell orders for customers of the stocks they oversee. They also use their firms’ money to buy shares when nobody else wants to buy and to sell shares from their own inventory when nobody else wants to sell.

Two former specialists at Van der Moolen Specialists USA were earlier this month each sentenced to six months in prison after being convicted last year of making improper trades at the New York Stock Exchange.

Source: AP

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