Monday, August 07, 2006

Happy Birthday to NYSE Arca Options

It's been quite some time since the last update to NYSE ArcaNews. However, NYX's outstanding quarter and earnings announcement, Jeffries' upgrade , the SEC's approval of NYX's options platform, and today's subsquent launch of NYSE Arca Options have inspired an overdue update to NYSE ArcaNews.

Going sequentially, NYX turned in an absolutely amazing quarter. The synergies from the Arca deal are taking hold, and everything seems to be humming along famously. They beat the Street by a couple of cents, and had a very upbeat conference call following their announcement. The usual analysts were on the call -- complete with poorly calculated conclusions that prompted management to help guide these analysts in terms of how to look at certain things. More than once, Mr. Chai had to help an analyst see things as they actually are.

Next, the Jefferies updgrade. After getting things wrong since the AX IPO, it seems as someone decided Jefferies customers might be better off if Chamberlain didn't cover NYX. Jefferies analyst, Richard Shane wrote, "We believe second-quarter results reflect the substantial benefits of consolidation" and "that the proposed Euronext merger will provide the opportunity to continue these positive trends through 2009." Jefferies lifted the NYSE's earnings estimates for this year to $1.52 a share from $1.42 previously (source:

As management stated on the earnings conf. call, the SEC's options approval was around the corner. It was not going to be months, but rather weeks. ]They were literally waiting for the okay. They received that approval on 8/1/06, and today NYSE Arca Options launched. This is an absolutely historic time for the NYX and the launch of this platform will add to NYX's revenue base. It also further diversifies the exchange's product mix, and the technological engine that fuels this options marketplace will make NYX a contender in the options space. Once again, the company continues to execute and grow.

Thank you for your continued interest in NYSE ArcaNews. I apologize for the lull. And for what it's worth, I'm as bullish on NYX as I've ever been.
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