NYSE Euronext, Nasdaq OMX Gain Ground In US Stock Trade
November 06 2009 - 12:33PM
Dow Jones News
NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ) in October
gained ground on smaller rivals that have cut into the exchange
operators' U.S. business in the past year.
Both companies saw their share of U.S. cash equities trade rise
in October, while trading activity fell at Direct Edge and held
steady at BATS Exchange.
The major stock exchange operators have come under intense
pressure from startup electronic platforms targeting the market
with low prices and fast systems.
October signaled that some recent advantages enjoyed by these
competitors may have diminished--heavy trade in cheaply priced
financial stocks like Citigroup Inc. (C), which buoyed Direct Edge
in recent months, tailed off as investors reduced hedging activity
and refocused on third-quarter corporate earnings and economic
data.
As U.S. cash equities trade ticked 3% lower from September
levels to about 9.3 billion shares per day, NYSE Euronext saw its
market share edge higher to 28.1%, while Nasdaq OMX's share jumped
nearly two points to 24.8%.
Overall stock trading volumes remained sharply lower compared to
October 2008, when the financial crisis drove heavy activity across
multiple markets.
Kansas City, Mo.-based BATS saw its U.S. matched market share
hold steady at about 9.5% for the month, while it claimed a record
3.7% of the European equity market via its one-year-old BATS Europe
platform.
Direct Edge, based in Jersey City, N.J., fell to an estimated
10.5% of the U.S. market, with business on its three exchange
platforms down more than a full point from September.
NYSE Euronext's European derivatives business took a hit last
month, as a slide in fixed income and equity index futures trade
pushed overall volume down 11% from September's levels.
Executives at NYSE Liffe, the company's futures arm, anticipate
a pickup in fixed income volume as the European Central Bank moves
toward hiking benchmark interest rates, though it remains unclear
when this might happen.
In U.S. options trade, NYSE Euronext gained business following a
September deal that saw the exchange company bring in seven banks
and trading firms as equity partners in its NYSE Amex options
exchange, helping lift its market share to 22.8%.
Last week NYSE Euronext announced a similar gambit with its
startup U.S. futures exchange NYSE Liffe US, which traded 22,000
metals and equity index contracts in October, rising from September
levels.
Nasdaq OMX's options business shrank in October to 20.2% of the
U.S. market, with approximately 62 million contracts traded. The
Chicago Board Options Exchange remains the largest U.S. options
platform by volume.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com
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