Monday, September 14, 2009

NYSE/Euronext Sheds Business

NYSE/Euronext,parent of the New York Stock Exchange,is selling its old AMEX options business to key liquidity providers,according to CEO Duncan Niederauer.NYSE/Euronext has an 8-9% share of options trading.Options are rights or obligations to buy or sell something,such as stocks,at a certain price,within a specific time frame.Mr.Niederauer says they see more initial public offerings,or IPOs,in the NYSE's future.The IPO pipeline is healthier than it's been in a while.IPO listing is considered an important indicator of economic vibrancy and the strength of a financial center such as New York.
On the other hand,we've had a 50% run-up in stocks since March,Mr.Niederauer pointed out,but the economy is not keeping up with the market right now.Every business leader he's spoken to said that.Is the market now ready to take on more supply in the form of these IPOs?Hopefully the market is the leader it always was.The challenge is,is there too much exchange consolidation?You're gonna see us do smaller deals in the next few months,Duncan Niederauer indicated.Mr.Niederauer had worked at Goldman Sachs for many years.

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