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Monday, November 06, 2006

NYX Firing on All Cylanders


Things seem to be humming along with NYX's initiatives across the board.

Hybrid is firing on all cylanders, and the Euronext vote is around the corner. The stretch towards the end of 2006 should see the beginning of an era in capital market structure never before seen.

In addition to NYX's margin expansion and revenue diversification, NYSE Arca is quickly emerging as an alternative listing venue for companies that want to be listed on the world's most recognized and sophisticated bourse. Click here to read more about NYSE Arca as a listings venue.

SPEAKING OF LISTINGS

As ETFs continue to grow incredibly popular for investors, NYX is facilitating their growth as the number of listed ETFs has grown dramatically at the NYSE. Click here to read more about this.

There are many reasons for this transformation from mutual funds to ETFs, and here are a few advantages that ETFs have over mutual funds:
* Investors can use options on ETFs to reduce risk (decrease beta, etc)
* Investors don't pay distributed capital gains taxes in ETFs (mutual fund holders share the tax liability created by fund holders who redeemed their shares during the year)
* They are typically significantly less expensive than mutual funds (especially when used in a fee-based account)
* The benchmarks that are typically represented in ETFs outperform their actively-managed counterparts in similar sectors/caps/styles.

So, near-term catalysts like Hybrid and the Euronext vote should indicate that NYX is executing their well-thought out plan to lead the transformation of the global capital markets.

4 Comments:

Anonymous Aaron L. said...

Seriously -- this has been the single best source for me to research the NYSE Group. Thank you for providing your insight and links to all of your historical posts.

Please post more often!

9:25 AM  
Anonymous Anonymous said...

I think you're right on. I hear that folks are loving Hybrid!

9:27 AM  
Anonymous Anonymous said...

thanks for your accurate information.
In a year this will be a S & P 500
company. They will start paying dividends and end the stock lock-up.
We have invested with the brilliant John Thain

4:48 PM  
Blogger amotleyfool said...

Thanks for your feedback. There are many catalysts that will likely positively impact future cash flows.

If Sarbanes-Oxley can be eased, we should see a nice return to listings from leading companies across the globe looking for liquidity, superior price performance, integrity, etc... The NYX team is brilliant and they're executing a plan that has the most sweeping structural changes to the global capital markets that have anyone alive has witnessed.

Hope you enjoy the blog. Please stop back!

9:55 AM  

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