Friday, December 30, 2005

One site off the road ahead

Consider the potential revenue that the NYX will be deriving from selling seats:
(using the average of the minimum and maximum seat prices)
$61,612.50/seat x 1366 seats = $84,162,675 to the top line -- and that's recurring revenue that'll likely scale with inflation.

It could be interesting if NYX shareholders one day agree to issue more than 1366 trading licenses (i.e., seats). The incremental costs to the NYX are small per each additional license it may issue.

The other revenue rivers like data feeds (again, wonderful economies-of-scale) will be recurring and predictable.

Meantime, global expansion is afoot. Same way that costs for sending email internationally are marginal, sending buy and sell orders electronically has incredibly low costs and huge margins.

And, among other things, the NYX is instantly getting into the options and ETF games. Market share that has nowhere to go but up, and listings that are migrating to their system (like 40 iShares Barclays has moved over).


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