FILE - In this Feb. 10, 2011 file picture traders work at the New York Stock Exchange. The parent company of the New York Stock Exchange says it has agreed to combine with the operator of the Frankfurt stock exchange, Deutsche Boerse. The deal announced Tuesday Feb. 15, 2011, will create the world's largest financial exchange owner. Deutsche Boerse shareholders will own 60 percent of the new company. Shareholders of NYSE Euronext Inc. will own the rest. The deal will give NYSE Euronext a larger footprint in the more lucrative business of trading in futures and options contracts. The boards of both exchange owners signed off on the deal, but it must still be approved by shareholders and regulators. (AP Photo/Mark Lennihan)
OptionsXpress stock jumped $2.51, 16.4 percent, to $17.84 in pre-market trading. Schwab shares added 9 cents to $17.65.
The discount broker said OptionsXpress shareholders will receive 1.02 shares of Schwab stock for each share of OptionsXpress share.
Based on Schwab's closing price on Friday of $17.91, the transaction is valued at $1 billion.
OptionsXpress Holdings Inc., based in Chicago, provides brokerage services for equity options and futures trading. At the end of February, the company had 385,200 client accounts and $8.1 billion in client assets.
Charles Schwab Corp. has $1.6 trillion in client assets at the end of the same period.
The deal is expected to close in the third quarter.