Two exchange deals to be announced soon

According to The New York Times, Morgan Stanley, UBS, Credit Suisse First Boston and Citigroup are likely to announce today they are joining Merrill Lynch and the Citadel Derivatives Group to take an equity stake in the Philadelphia Stock Exchange, which most see as primarily an options exchange. Meanwhile, Fidelity, Lehman Brothers, Credit Suisse First Boston, Citigroup and a Citigroup unit, Lava Trading, are in talks to create an electronic trading platform modeled after the Boston Options Exchange. What's going on? Companies are rushing to make sure they have alternatives should the NYSE and Nasdaq fall out of favor.

> Here's the New York Times article.