Barclays Capital said it agreed to acquire the New York Stock Exchange's Designated Market Market Maker (DMM) assignments of LaBranche & Co. Inc. for $125 million.

The acquisition will strengthen Barclays Capital's position as the leading DMM at the NYSE and follows the firm's March 2009 acquisition of the DMM rights of Bear Wagner Specialists LLC.

Currently, Barclays Capital is responsible for approximately 900 NYSE-listed securities. LaBranche is responsible for approximately 700 NYSE-listed securities, making it the third largest DMM in the number of securities traded. Barclays Capital will work with the NYSE to ensure the successful transfer of responsibilities and to reallocate some of the acquired portfolio in order to maintain diversification among DMM firms and NYSE-listed companies.

Commenting on the deal, William White, head of Barclays Capital Market Makers, said in the release: "This transaction underscores our commitment to our DMM business and to promoting competitive and transparent public markets. We look forward to continuing our partnership with the New York Stock Exchange in offering our market-leading equities capabilities to an expanded client base." The transaction is scheduled for completion in Q1 2010, subject to various conditions and pending regulatory approvals.

Barclays Capital combines more than 80 years of market making experience with investments in technology and trading models, according to the company's release. Its approach helps to ensure that trading in client's securities remains orderly and liquid, and that clients receive insightful and up-to-date market color, the company said.