Essay Preview: Nyse
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Introduction:
To determine whether to list on NYSE or NSADAQ, we would need to determine what are the advantages and disadvantages of both are relating to issues such as Listing Fees, Liquidity, speciality dealers etc.
Background:
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services.
The death of the Big Board has, admittedly, often been predicted, by The Economist among others. Doomsters always point to its traditional trading floor, crowded with noisily jostling people, and say that electronic exchanges must offer lower-cost trading. Many of Americas most glamorous “new-economy” companies, from Amazon and Oracle to Intel and Microsoft, have chosen not to be part of the NYSEs blue-chip roster, listing on Nasdaq instead. The NYSE has, until recently, retained many restrictive rules and practices that have protected it from competition; as they are scrapped, it will become more vulnerable. And it has been very slow to forge alliances or joint ventures with overseas markets, risking remaining an essentially national operation in a rapidly globalising marketplace.
The reason for most of these failings is that the NYSE has refused to adapt as markets have evolved. And the main reason for that is that it is under conflicting pressures from its customers and its members. Some big financial institutions are investing in rivals, such as online trading systems, collectively known as electronic communication networks (ECNS). These firms are actively considering shifting some trading away from the NYSE, partly to make more money for themselves. Resolving these conflicting interests has been made