Tuesday, January 23, 2007

Hybrid's In Place!

Since 4/20/2005 (NYSE and Archipelago's merger announcement), there have been monumental structural changes to the way trades get done at the NYSE. Regulation NMS helped usher in regulatory changes that helped generate competition, efficiency, transparency, and overall fairness in the equity market structure.

The efficiencies include the replacement of some of the quickest digits known to mankind (read: the fingers that onced tapped feverishly on floor of the NYSE) by computer systems that underscore the greatest transformation seen on Wall Street in decades, if not centuries. Greater efficiencies improve margins, and also improve the quality of trading.

Van Der Moolen announced today that 30% of their US-based employees will be getting the ax (pun intended). This comes on the heels of LaBranche's cuts and other firms that once dominated to NYSE infrastructure. Macchiveli writes that change leads to other change, and the transformation occuring on the corner of Wall and Broad reflects this Macchivelian idea. Just think about how much has changed in this space since Archipelago debuted as a public company in 2004. And, it's exciting to think about changes that will occur in this space over the next couple of years.

It's worth noting that NDAQ seems to come out with nonsense that grabs media attention during times that notable advances in the execution of the NYX business plan by a host of briliant managers occur. Today, NDAQ's spotlight quest comes as a letter to LSE shareholders that the company they mutually own has unrealistic growth targets. While NDAQ is busy sending unsolicited takeover faxes to LSE's management, and drafing letters to shareholders that aren't their own, NYX continues to execute it's well-conceived plan to dominate the global marketplace for nearly all investment products. The correlation between NYX's successes and NDAQ's blunders are worth noting.

As March approaches we should start to hear about perceived issues related to lockups of NYX stock. It'd be great to hear what Langone and Higgens have to say about the value generated in their shares since last March.

The move to Hybrid is a major accomplishment. Congratulations to all that have been working on going totally live with it this month.

Here are two links to much more about what makes Hybrid so exciting:
1) NYX Website's Info
2) NYX Hybrid Blog

Hope these links help.


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