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4 Big Banks Score Perfect 61-Day Run JPMorgan Traders Match Goldman's Quarter With No Trading Loss Goldman Traders Had a Perfect Quarter China May ‘Crash’ in Next 9 to 12 Months, Faber Says Most Popular Franchises Goldman Sachs Tops JPMorgan as World's Best Broker Morgan Stanley Traders Made More Than $100 Million on 18 Days Bank of America Merrill Lynch launches algorithm suite for Brazilian equities Goldman May Lose Millions From Ex-Worker’s Code Theft NYSE Loses Market Share and Nasdaq Isn’t the Winner Automated Trader Magazine Q2 2009 25 things vanishing in America, part 2: Trading pits Power of Six The Great Lie of 2009  NYSE Loses Market Share and Nasdaq Isn’t the Winner By Edgar Ortega June 24 (Bloomberg) -- NYSE Euronext’s control of U.S. stock trading is slipping away. Two-hundred seventeen years after the New York Stock Exchange was founded under a Wall Street buttonwood tree, its modern-day parent executed a record low 30.2 percent of May’s trades, data compiled by Bloomberg show. That’s down 2.8 points from February for the worst three months since June 2008. The beneficiary wasn’t Nasdaq OMX Group Inc., the Big Board’s main rival for 38 years. It was Direct Edge Holdings LLC and Bats Exchange Inc., which more than doubled their combined share since August to 22.8 percent. “When you are in a purely electronic marketplace, the fact that you’re the original or the oldest guy standing doesn’t mean anything anymore,” said Michael Rosen, a senior vice president at UNX Inc., a Los Angeles brokerage. “The people doing the trading aren’t buying the story of the Nasdaq or the NYSE. They just want the fastest and best execution they can get at the lowest price.” NYSE Euronext’s share in the world’s biggest stock market declined even after the $3 billion purchase of the Chicago-based Archipelago electronic exchange in 2006. That highlights the growing influence of alternative trading systems like Bats and Direct Edge, both majority-owned by Wall Street firms. 10 Milliseconds Joseph Mecane, NYSE Euronext’s chief administrative officer for U.S. markets, said the company remains the nation’s dominant marketplace and is fighting to regain some lost business by replacing its 25-year-old SuperDOT trading system. The new one will cut processing time by 90 percent to less than 10 milliseconds, making the NYSE “as fast as all the other channels” offered by rivals, Niederauer said this month. “We’re hopeful that it will have a little bit of a boost for our market share,” Mecane said in an interview. “But it continues to be a very competitive space. The brokers will keep any one venue from growing too large.” The Big Board dominated U.S. stock trading for two centuries until 1999, when Nasdaq started to catch up as prices for technology stocks listed on its exchange soared, data from the World Federation of Exchanges show. Back then, the Nasdaq-NYSE rivalry was focused on persuading companies to list shares on their own boards and dominating the buying and selling of those stocks. Richard Grasso, the Big Board’s chairman and CEO from 1995 to 2003, used to say he had reserved the ticker symbols M and I for Microsoft Corp. and Intel Corp. to lure them from Nasdaq, where they still reside. |
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