PEOPLE : Leibler Quits as American Exchange President

The president of the American Stock Exchange, Kenneth Leibler, abruptly announced his resignation Tuesday, and exchange and industry officials said no clear successor was at hand.

Leibler said he would become president and chief operating officer of Liberty Financial, a Boston-based subsidiary of Liberty Mutual Insurance Co.

His resignation was sudden, although Wall Street has been speculating he would step down after former Rep. James Jones (D-Okla.) was named exchange chairman last November.

“It’s a mixed emotion,” Leibler, 41, said. “I’ve spent virtually all my professional life at the exchange.”

Leibler joined the American Stock Exchange in 1975, after managing Lehman Bros.’ retail options department, and became the 22nd president of the exchange in 1986 at age 36--the youngest president ever of a U.S. stock exchange.

He rose rapidly in senior positions at the exchange, playing a role in its diversification from an equities-only market to one that trades stocks, bonds, options and commodities.

Leibler said he had informed Jones on Tuesday morning of his decision to step down and said he would remain “flexible” regarding the timing of his transition and the selection of a successor, a process expected to begin immediately.

An exchange spokeswoman said the decision came as a surprise and that “Ken and Jim Jones will be working out a schedule for an orderly transition.”

Wall Street officials said Leibler had hoped to succeed Arthur Levitt as Amex chairman last year. But Leibler said his departure was prompted by the opportunity offered by Liberty Financial:

“I became president at the age of 36. In no circumstances did I anticipate being at the exchange for another 25 years. That would be true whether I am president or chairman. For me it’s a function of when the right thing came along.”

The departure comes as the Amex makes a strategic review and prepares to embark on new projects, including a pact unveiled Monday with the Chicago Board Options Exchange and the Cincinnati Stock Exchange to launch a worldwide after-hours equities and options trading system.

Bill LeFevre, an Advest Inc. analyst, noted that the exchange’s presidency is being vacated as the New York Stock Exchange seeks a successor to John J. Phelan as chairman. “Suddenly nobody wants these jobs,” he said.

Leibler will have responsibility for eight operating companies with an asset base of more than $21 billion, including two investment management firms.