Sunday, March 26, 2006

NDAQ vs NYX

Here are some comparisons between NDAQ and NYX. ( my opinion ofcourse ) Do you have other points?

  1. Trend - Every IPO has had a pop. CME, NDAQ after going public. Advantage NYX.
  2. Size - The market cap of all securities listed in NYX is 20+ trillion. NDAQ is 2.2 trillion. NYX market cap is four times that of NDAQ. Advantage NYX.
  3. Revenues - NDAQ recovered after years of stagnant/declining growth after buying INET and others. NYX has had steady revenues and Archipelago is gaining market share. Advantage NYX.
  4. Stock dilution - NYX former seat holders will oppose significant dilution by acquisitions without adding value. Advantage NYX.
  5. Listing companies - NDAQ fees are lower. Advantage NDAQ.
  6. Cost cutting upside - NYX has been a non profit. ( Grasso's pay excess is one example ). More opportunities to cut costs to make it a leaner organization. Advantage NYX.
  7. Moving the big board to electronic trade - neutral for the moment.
  8. Valuation - Difficult to put proper numbers around NYX right now - neutral for the moment.

3 comments:

Anonymous said...

I think that the NDAQ management is finally getting up to speed. They didn't get "it" a few years ago.

Listing fees on the NDAQ are lower, and this should put some pressure on fees at NYX. The stock market is becoming commoditized.

AX gives NYX and edgier bent. I think their aggressiveness gives them an edge.

How risky will they play? Will they take on debt to expand. Can they get the LSE before another exchange?

Who has the best strategy for Asia?

Game is just getting started. NYX may have to watch out for players from other parts of the industry..CME?

changpeng05 said...

Good comment. I agree that Nasdaq's lower fees will put pressure on Nyse. They already reduced their listing prices from one million to 500K. Further lowering of prices can put pressure on NDAQ as well.

Anonymous said...

NYX stock price is currently down I think its a good time to buy, I see the price sky rocketing due to earnings and must happen acquisitions of LSE or other cross atlantic exchange.