Of course, NYSE says it will never give up its two-century-plus old system. But it will be making those floor traders potentially redundant. And it’s never good to be the last of any legacy business. Read more »
You can trade anywhere these days. So why not demand a bribe?
Fresh from their success sinking the CMDX, the CDS clearinghouse founded by the Chicago Mercantile Exchange and Citadel Investment Group, the Wall Street oligarchs are now insisting upon tribute from the New York Stock Exchange.
The Big Board is selling a “significant stake” in its U.S. futures exchange, NYSE Liffe U.S., hoping to drum up business after seeing its revenue and profit plummet in the third quarter. It’s worked before: NYSE Euronext sold off a stake of its NYSE Amex Options platform last year, quickly boosting its market share. And while Citadel and the CME tried–and failed–to go it alone, the Intercontinental Exchange built a dominant CDS clearinghouse with the backing of nine banks.
As it turns out, the American Stock Exchange still exists and it’s being acquired for $260 million in stock by NYSE Euronext.
The deal had been rumored forever. One person very familiar with the American Stock Exchange told DealBreaker: “Finally! This deal should have happened 15 years ago.”
After the jump, read the full press release.
Former NYSE chair Dick Grasso recently left a voicemail for Charlie Gasparino. Know what it said? “Happy holidays.” Why did this seemingly innocuous message scare the fuck out of Charlie, who takes no shit or prisoners, and who is known for yelling at/cutting off/berating his colleagues on air (especially Joe Kernen, but let’s face it, that guy has it coming) and leaning so far up into the camera that you feel as though he’s about to grab you by the collar, shove you up against the wall and demand to know where his “fucking money” is*? I don’t know, apparently it has something to do with a book he wrote calling the Grass-man a midget and implying that he has illegitimate children up and down the Eastern Seaboard. “It was a little scary,” Gasparino told Page Six. But looked himself in the mirror and said, “You’re fucking Charlie Gasparino, you don’t take no shit or prisoners, make the call.” And it turned out they “had a perfectly nice conversation.” Don’t you love happy endings between two boys from the old neighborhood? Thick-skinned [New York Post]
*BTW, we’d like to see more of this dynamic style from CNBC’s on air-talent, especially from Trish Regan and Mark Haines, who would be naturals.
It looks like it’s Merrill Lynch that is nabbing New York Stock Exchange chief executive John Thain.
The New York Post has just reported that Merrill is expected to announce that it has hired Thain to replace ousted CEO Stan O’Neal sometime this afternoon. Zach Kouwe, whose reporting has scooped the world on this story, attributes it to “people familiar with the matter.”
An NYSE board meeting is scheduled for 2 p.m. today and an announcement could come after the market closes, sources said. The move is a huge coup for Merrill and board member Alberto Cribiore, who has led the search for a new CEO after O’Neal resigned on Oct. 30.
Kouwe also reports that Citi wanted Thain but he chose the smaller, more narrowly focussed Merrill instead. The Post describes this as a “snub” for Citi. NYSE Chief Operating Officer Duncan Niederauer is expected to land the top job at the exchange.
Citi Snub: Thain Going To Merrill [New York Post] Update 12:32: The Wall Street Journal files its report also: “John Thain, CEO of NYSE Euronext, has agreed to take the top post at brokerage house Merrill Lynch & Co., according to a person familiar with the matter.”
Update 12:39: Congratulations and thanks to all our readers who voted in this morning’s reader poll, which correctly called that John Thain would leave the NYSE for Merrill. We’re constantly gratified by the amazing accuracy of our polls, which have predicted everything from the level of Fed rate cuts to this news. We like to think we have the best informed, most intelligent readers but it’s nice to see you guys prove it over and over again. Update 12:50: So what happened to Blackrock chief Larry Fink, the man many thought would eventually be Stan O’Neal replacement? Did he turn the job down? Was the board’s enthusiasm for him exaggerated? Some fear of subprime contagion? Loyalty to Blackrock? Update 1:06: CNBC’s Charlie Gasparino says that Fink was offered the job, but he spooked the Merrill board by demanding a full-accounting of Merrill’s subprime exposure. This led the board to go in another direction, perhaps out of fear that Fink might turn down the job if the subprime exposure was too bad. Update 2:01: The Journal confirms that the stock exchange will name Duncan Niederaueras its new CEO.
Let’s assume for a moment that the rumors (and CNBC’s Bob Pisani) are right and the board of the New York Stock Exchange is holding an unscheduled meeting right now. Views about what is happening are divided, so we figured we’d go to the experts: our readers. What do you think is going on at the NYSE board meeting today?
Rumors are rampant that the New York Stock Exchange will begin an unscheduled board meeting in about ten minutes. The eleven o’clock meeting is widely believed to have been called so that NYSE chief executive John Thain can announce he is leaving the exchange.
CNBC has reported that speculation on the floor of the exchange has Thain leaving to go to either Merrill Lynch or Citigroup, both of which recently ousted their chief executives. Our sources are leaning heavily toward Merrill. And over at the Financial Times, they are just now reporting that Thain isn’t even a contender for the top spot at Citi.
There’s also a minority view that the board is meeting to discuss a new acquisition, perhaps of the NYMEX.
Thain absent from Citi’s shortlist [Financial Times]
The New York Stock Exchange has released it’s calendar for 2008 and 2009. Get excited because in 2008 there will be two extra trading days! It’s a leap year, giving us an extra day in February. And there is one less holiday on the schedule—this year we honored the death of Gerald “stagflation” Ford by refusing to work. Unless a former president dies this year, we should have one more day of trading.
Leap years tend to outperform other years, with particularly strong Augusts. Of course, leap years are also presidential election years, which may have more to do with market performance than that extra day in February.
Click chart for larger version. NYSE Euronext Holidays & Hours [NYSE]