|  | | 2005 News and Press Releases | | |
HEADLINE NEWS:
NYSE Will Grow, But At Home: CEO John Thain Says US Deals First
Staff Writer – Marketwatch
Securities Mosaic. November 10, 2005
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EXCERPT: Responding to questions on whether he will bid for the London Stock Exchange, New York Stock Exchange Chief Executive John Thain on Thursday said that "more needed to be done" in the U.S. before making a foreign investment. Thain, speaking at the Securities Industry Association annual meeting, said he envisions a European-style NYSE in which the exchange would be a market for debt, cash, options and futures as well as providing custody and clearing services. "The European market is five years ahead of the U.S. and that's a concern," Thain said. The NYSE will become a public company next year. Thain said he expects a six- to 12-month integration period. Thain said he expects U.S. markets will be linked to Europe in the next few years, and that links to Asia and the Pacific will be built in the next three to five years. Earlier trading at the NYSE may, however, come sooner. Thain said the 9:30 a.m. open wasn't a "21st century" idea and that the exchange was losing business between 8 a.m. and the opening bell to European and electronic markets. "I can tell you it's not popular on the floor and it's certainly not popular on the West Coast." But Thain also said he did not see the need for a 24-hour trading day, an idea made popular a few years ago. He said that trading volume around the world drops dramatically in the night and early morning suggesting that there would not be enough liquidity to sustain a market. Thain said the NYSE plans to create a second listing standard that would compete with rival Nasdaq. The new designation would have less-stringent listing requirements than the Nasdaq Stock Market NDAQ such as how long a company had been in business, he said. The plan is contingent on the NYSE's planned merger with Archipelago Holdings AX. |
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