- No tailgating allowed at Super Bowl XLVIII
- Pentagon to transport African troops to Central African Republic
- Chinese man fed up with his girlfriend’s shopping jumps to his death
- Ukraine leader to talk with protesters; Washington urges caution
- Pope Francis: A nun saved my life
- Israeli P.M. Netanyahu backs out of Mandela funeral
- Elian Gonzalez makes first trip outside Cuba since custody battle
- U.S., British intelligence agents enter online sci-fi world to spy on gamers
- Sarah Palin to host the outdoors show ‘Amazing America’
- CIA admits $3 billion intelligence operation was a flop
NYSE being sold to Atlanta firm for $8 billion
The Big Board just isn’t so big anymore.
In a deal that highlights the dwindling stature of what was once a centerpiece of capitalism, the New York Stock Exchange is being sold to a little-known rival for $8 billion — $3 billion less than it would have fetched in a proposed takeover just last year.
The buyer is Intercontinental Exchange, a 12-year-old firm headquartered in Atlanta that deals in investing contracts known as futures.
Intercontinental Exchange, known as ICE, said Thursday that little would change for the trading floor at the intersection of Wall and Broad streets, in Manhattan’s financial district. But the clout of the two-centuries-old NYSE has gradually been eroded over decades by the relentless advance of technology and regulatory changes. Its importance today is mostly symbolic.
The NYSE dates to 1792, when 24 brokers and merchants traded stocks under a buttonwood tree on Wall Street. But today most trading doesn’t require face-to-face meeting at all. It’s done on computers that match thousands of orders a second.
Three decades ago, the floor of the New York exchange was full of bustling traders. Today, one of its largest booths belongs to the cable news channel CNBC, which broadcasts there for most of the business day.
The introduction of negotiated, rather than fixed, commissions for securities transactions, in May 1975 marked the start of a gradual decline in brokerage fees for traditional stock trading.
It also gave rise to so-called discount brokerages, like Charles Schwab, that offered to trade for customers at lower rates.
“The cash equities business in America has effectively been obliterated,” said Thomas Caldwell, chairman of Caldwell Securities in Toronto and a shareholder in the New York exchange’s parent company, NYSE Euronext.
NYSE Euronext was formed in a 2007 merger when NYSE Group, parent company of the exchange, got together with Euronext, which owned stock exchanges in Europe.
It has been looking for a partner. Last year, ICE and Nasdaq OMX Group Inc., which competes with the NYSE for stock listings, made an $11 billion bid to buy NYSE Euronext. But that deal fell apart after regulators raised antitrust concerns.
Deutsche Boerse AG, a German company, made a bid for NYSE Euronext, but that was scuttled by European regulators.
ICE was established in May 2000. Its founding shareholders represented some of the world’s largest energy companies and financial institutions, according to the company’s most recent annual report.
Analysts forecast that ICE’s revenue will reach $1.4 billion this year, more than double the $574 million it reported in 2007.
Peter Costa, president of Empire Executions Inc., a boutique trading firm on the floor of the NYSE, and a governor with the New York Stock Exchange, said that both companies knew the value of the NYSE brand and would try to preserve it.
By Brahma Chellaney
Beijing's creeping aggression signals a challenge to U.S. presence in the Asian Pacific
- CURL: Obama tells a whopper on IRS scandal
- Tech companies call for an end to NSA online snooping
- Chinese man fed up with his girlfriend's shopping jumps to his death
- Obama lied about Syrian chemical attack, 'cherry-picked' intelligence: report
- WOLF: The president's other Obamacare lies
- Lawmakers see 'false narrative' of Obama as a terrorist fighter
- Ted Cruz sees legal landmines ahead for Obamacare
- MSNBC host: Obamacare a 'wealthy white men' racist word
- MILLER: Brady Campaign says Colorado recalls due to NRA, not grassroots opposition to gun control
- Mike Shanahan says he'd like to return; RG3 might be benched
Independent voices from the The Washington Times Communities
Brazen, leading-edge, “call it like it is” columns and reporting from Ohio native, radio host and writer, Sara Marie Brenner.
Let’s talk about everything, especially the absurdity of it all
Find the latest news and happening that effect those in the Washington D.C., Northern Virginia and Maryland Metro region.
Never apologetic. Never afraid. Lieutenant Colonel Allen B. West joins Communities to bring tales from the biggest Foxhole of them all, the one inside the Beltway.
White House pets gone wild!
Let it snow