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.