السلام عليكم
الخبر:
دمج مؤشر نياز مع ارتشبلو
شوف ارتشبلو Ax
ارتفاع 8.00
سعر السهم 26.00
وسهم INGP
سعر السهم 5.97
ارتفاع 31 سنت
الخبر
=DJ NYSE, Archipelago To Merge In Historic Deal
04/21/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
By Gaston F. Ceron
Of DOW JONES NEWSWIRES
(This article was originally published Wednesday.)
NEW YORK (Dow Jones)--In a deal certain to reverberate through the stock-trading world, the tradition-laden New York Stock Exchange agreed to merge with Archipelago Holdings Inc. (AX), setting up a marriage between a nearly 213-year-old stock exchange and an upstart electronic market that didn't exist 10 years ago but now is a big force in stock trading.
The transaction, which is expected to close in the fourth quarter of 2005 or the first quarter of 2006, will spawn a publicly traded company to be known as NYSE Group Inc. It will be 70%-owned by the holders of the NYSE's 1,366 membership "seats," who will receive cash and stock in the new company, with Archipelago's shareholders holding the rest.
Addressing reporters, NYSE staff and exchange members assembled at a hastily-called press conference held at the NYSE's sixth-floor boardroom Wednesday, Big Board Chief Executive John Thain sought to put the historic occasion in context. He tipped his hat to the NYSE's history and its role in America's "leadership at the center of global capitalism." But, he continued, in a global, fast-paced 21st century marketplace, "it is clear that we must do more."
The new company's chief executive will be Thain, the former Goldman Sachs Group Inc. (GS) president who arrived in January 2004 to lead the embattled NYSE out of a morass created by the twin crises of 2003 - the ouster of longtime Big Board boss Dick Grasso amid a pay flap and the trading scandal that sullied the NYSE's stock-trading "specialists." Archipelago CEO Jerry Putnam, one of the pioneers of electronic stock trading, will be a co-president of the new company, along with the Big Board's Catherine Kinney and Robert Britz.
Matthew Andresen, the former chief executive of Island ECN, a stock-trading network now part of Instinet Group Inc. (INGP), said he was struck by the NYSE's impending transformation into a for-profit business. Some exchange members have long been calling for the exchange to shed its not-for-profit status and act more like its listed companies.
"This is an event with staggering consequences," said Andresen, now the president of Citadel Execution Services, which is part of Citadel Investment Group in Chicago. "New York is a more-formidable competitor as a for-profit entity."
The planned merger is a milestone for the upstart electronic trading venues that became a force in stock trading in the late 1990s. Companies like Archipelago once were mere nuisances to established players such as the NYSE and Nasdaq Stock Market Inc. (NDAQ), but Andresen said it was ironic that now they are becoming part of the establishment they once challenged and helped transform. Indeed, even as the NYSE and Archipelago announced their merger, Nasdaq is thought to be planning its own deal for Instinet's Inet stock-trading system. Nasdaq last year acquired another of the electronic markets, Brut.
"Archipelago has been an agent of change in the U.S. financial markets," Putnam said. "Change that has been recognized by the New York Stock Exchange and that has led us to the merger we announce today."
In merging with Archipelago, the NYSE is moving away from the single-product focus that has defined it in recent years. Archipelago trades not only NYSE stocks, but also Nasdaq-listed companies and is moving into options. But Thain said Nasdaq stocks likely wouldn't be traded on the NYSE floor.
The deal also puts the NYSE more firmly in the electronic age. Even as trading systems operated by the likes of Archipelago were winning converts, NYSE officials stuck with the exchange's floor-based system of trading stocks, in which human brokers and specialists do business on a huge trading floor in lower Manhattan. But last year, amid a heated debate over market-structure reforms, Thain pinned the NYSE's future on a plan for a "hybrid market" that would preserve the role of the floor while opening the door to more automation of trading.
Officials from the NYSE and Archipelago described the transaction as a way to modernize the Big Board through electronic trading, while broadening the combined company's business model. Thain said the merger "will help spur innovation at the New York Stock Exchange," helping the combined company compete with other trading markets around the world.
But even after the merger closes, the NYSE and Archipelago trading systems are expected to remain independent. "The strategy here is that we will keep the marketplaces separate and so we will keep the technology separate," Thain said. "The real advantage is our ability to trade the new products on Arca's platform." And NYSE Chief Financial Officer Amy Butte said NYSE officials are "looking for new products to trade on the floor."
But now that the NYSE is linking up with one of its electronic foes, questions will surely be raised about what this will mean to the NYSE's traders and brokers. Thain said "this is absolutely not the end of the floor."
Nasdaq, for its part, issued a statement saying the NYSE "is adopting a plan to follow Nasdaq's lead." But in a week in which Wall Street was eagerly waiting word of a Nasdaq-Instinet deal, it was the NYSE's surprise news that stole the show, at least for now.
Merger Raises Questions On Regulation, Culture
Not that the Big Board's announcement has answered all questions. Far from it. The deal still needs approval from NYSE members, Archipelago shareholders and the Securities and Exchange Commission. As the merger progresses, it's important to keep in mind that marriages between markets sometimes flop - think of the American Stock Exchange and Nasdaq, which now have gone their separate ways - and can even be scuttled altogether.
The reaction of the NYSE membership - a collection of different interests, such as those of retired traders, or "lessors," who rent out their seats and active trading-floor professionals - remains to be seen. Thain said the Big Board hasn't had a chance to gauge the likely support that the merger will receive from NYSE members. The exchange on Thursday is holding a "town hall meeting" for members, he said.
There is also the issue of culture. The NYSE runs an arguably more bureaucratic operation than Archipelago and, with roots that go back to a pact struck by 18th-century brokers under a buttonwood tree, it carries more historical baggage, good and bad, than its merger partner. Archipelago's business was founded in 1996.
Asked by an analyst on a conference call whether the history of supposedly "contentious" relations between the NYSE and Archipelago could complicate the merger, Putnam said he wasn't worried. "It's not contentious, it's competitive," he said. "We will no longer be competitors in that space, but working together."
Meanwhile, critics have already started wondering whether the regulatory structure of the new NYSE Group company puts enough distance between the marketplace and its cops. The task of policing the activities of NYSE Group will be handled by a separate, non-public, not-for-profit entity, to be run by a chief regulatory officer - a job now held at the NYSE by former SEC and Nasdaq official Richard Ketchum - and overseen by a board that will include NYSE Group's independent directors as well as unaffiliated directors.
NYSE Group's own board will include three independent directors from Archipelago and the Big Board's current 11 independent directors. Among other officials, the chief financial officer will be Nelson Chai, from Archipelago, while NYSE CFO Butte will be executive vice president of strategy and product development.
Goldman Sachs, which has ties to the NYSE and to Archipelago, gave financial advice to both parties, although separate investment banks were brought in to issue so-called fairness opinions on the deal. But Goldman's role goes beyond helping to shepherd the merger - the storied investment bank is, after all, where Thain came from; it is also a big investor in Archipelago and was a lead underwriter in the electronic market's initial public offering of stock last year.
As part of the deal, Thain said about $400 million will be split among NYSE members, which would leave the cash component of the deal at more than $290,000 per seat. The seat market recently valued NYSE memberships at $1.62 million apiece.
The merger is expected to result in more than $200 million in cost savings for the joint company by 2007, NYSE and Archipelago officials said on a conference call. While the deal was first described as a merger, NYSE officials referred to it as the Big Board buying Archipelago.
تحياتي
ابو عمر
الخبر:
دمج مؤشر نياز مع ارتشبلو
شوف ارتشبلو Ax
ارتفاع 8.00
سعر السهم 26.00
وسهم INGP
سعر السهم 5.97
ارتفاع 31 سنت
الخبر
=DJ NYSE, Archipelago To Merge In Historic Deal
04/21/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
By Gaston F. Ceron
Of DOW JONES NEWSWIRES
(This article was originally published Wednesday.)
NEW YORK (Dow Jones)--In a deal certain to reverberate through the stock-trading world, the tradition-laden New York Stock Exchange agreed to merge with Archipelago Holdings Inc. (AX), setting up a marriage between a nearly 213-year-old stock exchange and an upstart electronic market that didn't exist 10 years ago but now is a big force in stock trading.
The transaction, which is expected to close in the fourth quarter of 2005 or the first quarter of 2006, will spawn a publicly traded company to be known as NYSE Group Inc. It will be 70%-owned by the holders of the NYSE's 1,366 membership "seats," who will receive cash and stock in the new company, with Archipelago's shareholders holding the rest.
Addressing reporters, NYSE staff and exchange members assembled at a hastily-called press conference held at the NYSE's sixth-floor boardroom Wednesday, Big Board Chief Executive John Thain sought to put the historic occasion in context. He tipped his hat to the NYSE's history and its role in America's "leadership at the center of global capitalism." But, he continued, in a global, fast-paced 21st century marketplace, "it is clear that we must do more."
The new company's chief executive will be Thain, the former Goldman Sachs Group Inc. (GS) president who arrived in January 2004 to lead the embattled NYSE out of a morass created by the twin crises of 2003 - the ouster of longtime Big Board boss Dick Grasso amid a pay flap and the trading scandal that sullied the NYSE's stock-trading "specialists." Archipelago CEO Jerry Putnam, one of the pioneers of electronic stock trading, will be a co-president of the new company, along with the Big Board's Catherine Kinney and Robert Britz.
Matthew Andresen, the former chief executive of Island ECN, a stock-trading network now part of Instinet Group Inc. (INGP), said he was struck by the NYSE's impending transformation into a for-profit business. Some exchange members have long been calling for the exchange to shed its not-for-profit status and act more like its listed companies.
"This is an event with staggering consequences," said Andresen, now the president of Citadel Execution Services, which is part of Citadel Investment Group in Chicago. "New York is a more-formidable competitor as a for-profit entity."
The planned merger is a milestone for the upstart electronic trading venues that became a force in stock trading in the late 1990s. Companies like Archipelago once were mere nuisances to established players such as the NYSE and Nasdaq Stock Market Inc. (NDAQ), but Andresen said it was ironic that now they are becoming part of the establishment they once challenged and helped transform. Indeed, even as the NYSE and Archipelago announced their merger, Nasdaq is thought to be planning its own deal for Instinet's Inet stock-trading system. Nasdaq last year acquired another of the electronic markets, Brut.
"Archipelago has been an agent of change in the U.S. financial markets," Putnam said. "Change that has been recognized by the New York Stock Exchange and that has led us to the merger we announce today."
In merging with Archipelago, the NYSE is moving away from the single-product focus that has defined it in recent years. Archipelago trades not only NYSE stocks, but also Nasdaq-listed companies and is moving into options. But Thain said Nasdaq stocks likely wouldn't be traded on the NYSE floor.
The deal also puts the NYSE more firmly in the electronic age. Even as trading systems operated by the likes of Archipelago were winning converts, NYSE officials stuck with the exchange's floor-based system of trading stocks, in which human brokers and specialists do business on a huge trading floor in lower Manhattan. But last year, amid a heated debate over market-structure reforms, Thain pinned the NYSE's future on a plan for a "hybrid market" that would preserve the role of the floor while opening the door to more automation of trading.
Officials from the NYSE and Archipelago described the transaction as a way to modernize the Big Board through electronic trading, while broadening the combined company's business model. Thain said the merger "will help spur innovation at the New York Stock Exchange," helping the combined company compete with other trading markets around the world.
But even after the merger closes, the NYSE and Archipelago trading systems are expected to remain independent. "The strategy here is that we will keep the marketplaces separate and so we will keep the technology separate," Thain said. "The real advantage is our ability to trade the new products on Arca's platform." And NYSE Chief Financial Officer Amy Butte said NYSE officials are "looking for new products to trade on the floor."
But now that the NYSE is linking up with one of its electronic foes, questions will surely be raised about what this will mean to the NYSE's traders and brokers. Thain said "this is absolutely not the end of the floor."
Nasdaq, for its part, issued a statement saying the NYSE "is adopting a plan to follow Nasdaq's lead." But in a week in which Wall Street was eagerly waiting word of a Nasdaq-Instinet deal, it was the NYSE's surprise news that stole the show, at least for now.
Merger Raises Questions On Regulation, Culture
Not that the Big Board's announcement has answered all questions. Far from it. The deal still needs approval from NYSE members, Archipelago shareholders and the Securities and Exchange Commission. As the merger progresses, it's important to keep in mind that marriages between markets sometimes flop - think of the American Stock Exchange and Nasdaq, which now have gone their separate ways - and can even be scuttled altogether.
The reaction of the NYSE membership - a collection of different interests, such as those of retired traders, or "lessors," who rent out their seats and active trading-floor professionals - remains to be seen. Thain said the Big Board hasn't had a chance to gauge the likely support that the merger will receive from NYSE members. The exchange on Thursday is holding a "town hall meeting" for members, he said.
There is also the issue of culture. The NYSE runs an arguably more bureaucratic operation than Archipelago and, with roots that go back to a pact struck by 18th-century brokers under a buttonwood tree, it carries more historical baggage, good and bad, than its merger partner. Archipelago's business was founded in 1996.
Asked by an analyst on a conference call whether the history of supposedly "contentious" relations between the NYSE and Archipelago could complicate the merger, Putnam said he wasn't worried. "It's not contentious, it's competitive," he said. "We will no longer be competitors in that space, but working together."
Meanwhile, critics have already started wondering whether the regulatory structure of the new NYSE Group company puts enough distance between the marketplace and its cops. The task of policing the activities of NYSE Group will be handled by a separate, non-public, not-for-profit entity, to be run by a chief regulatory officer - a job now held at the NYSE by former SEC and Nasdaq official Richard Ketchum - and overseen by a board that will include NYSE Group's independent directors as well as unaffiliated directors.
NYSE Group's own board will include three independent directors from Archipelago and the Big Board's current 11 independent directors. Among other officials, the chief financial officer will be Nelson Chai, from Archipelago, while NYSE CFO Butte will be executive vice president of strategy and product development.
Goldman Sachs, which has ties to the NYSE and to Archipelago, gave financial advice to both parties, although separate investment banks were brought in to issue so-called fairness opinions on the deal. But Goldman's role goes beyond helping to shepherd the merger - the storied investment bank is, after all, where Thain came from; it is also a big investor in Archipelago and was a lead underwriter in the electronic market's initial public offering of stock last year.
As part of the deal, Thain said about $400 million will be split among NYSE members, which would leave the cash component of the deal at more than $290,000 per seat. The seat market recently valued NYSE memberships at $1.62 million apiece.
The merger is expected to result in more than $200 million in cost savings for the joint company by 2007, NYSE and Archipelago officials said on a conference call. While the deal was first described as a merger, NYSE officials referred to it as the Big Board buying Archipelago.
تحياتي
ابو عمر