Pacific Exchange Looks at Going Public Itself

Pacific Exchange members approved a plan Monday to convert their stock-trading floors into a for-profit subsidiary in an attempt to keep the money-losing operation alive.

With its market share shrinking, the Pacific’s stock floors in downtown Los Angeles and San Francisco lose $600,000 a month, according to a proxy circulated to exchange members. The restructuring would allow the exchange to sell shares in itself to the public for the first time--assuming the public would be interested.

It’s also intended to lower costs and make the floors more attractive relative to other regional exchanges. Converting the floors into “PCX Equities Inc.” may ease a possible merger or alliance with a financial firm or another exchange.

“Everybody is talking to everybody,” said David Hultman, vice chairman of the exchange. “A great thing about a corporate structure is that you can do things faster and speed up the decision-making process.”

The Securities and Exchange Commission must still approve the Pacific’s plan.