Nasdaq (NDAQ), NYSE (NYX) Could Work Together as SEC Turns Up the Heat
Tweet
Share
E-mail
Get Alerts NDAQ Hot Sheet
Price: $61.20 +1.41%
Overall Analyst Rating:
NEUTRAL (
Up)
Dividend Yield: 1.5%
Revenue Growth %: +21.4%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 1.5%
Revenue Growth %: +21.4%
Join SI Premium – FREE
The NYSE (NYSE: NYX) and Nasdaq OMX (Nasdaq: NDAQ) might be pairing up to reduce computer glitches, which have become front-page stories in recent years.
According to the WSJ, the two, along with several other exchanges, are hatching a plan where each company would run the others benchmark stock-pricing data. This would allow traders to turn to another firm to keep trading in the event of a breakdown with one exchange.
Following two recent events with the Nasdaq and one at the NYSE, the U.S. Securities and Exchange Commission (SEC) gave the exchanges a 60-day window to work on resolving the problems.
Last week, the NYSE Euronext experienced a problem which halted U.S. options trading for 10 minutes. In August, the Nasdaq stopped trading for three-hours in order to resolve a software failure. The Nasdaq had a small issue with the same SIP system one week later.
The SEC's decision was made on September 12th, meaning the exchanges have until early November to come up with a solution.
New regulations and potential partnerships come as the two exchanges are vying for companies like Twitter and Alibaba Group -- arguably two of the largest tech IPOs being talked-about right now -- to list on their exchange. Many still remember Nasdaq's mishandling of Facebook's (Nasdaq: FB) May 2012 IPO, which left investors and traders befuddled as to how such a large offering could go sour.
Both NYSE and Nasdaq OMX are trading higher Thursday.
According to the WSJ, the two, along with several other exchanges, are hatching a plan where each company would run the others benchmark stock-pricing data. This would allow traders to turn to another firm to keep trading in the event of a breakdown with one exchange.
Following two recent events with the Nasdaq and one at the NYSE, the U.S. Securities and Exchange Commission (SEC) gave the exchanges a 60-day window to work on resolving the problems.
Last week, the NYSE Euronext experienced a problem which halted U.S. options trading for 10 minutes. In August, the Nasdaq stopped trading for three-hours in order to resolve a software failure. The Nasdaq had a small issue with the same SIP system one week later.
The SEC's decision was made on September 12th, meaning the exchanges have until early November to come up with a solution.
New regulations and potential partnerships come as the two exchanges are vying for companies like Twitter and Alibaba Group -- arguably two of the largest tech IPOs being talked-about right now -- to list on their exchange. Many still remember Nasdaq's mishandling of Facebook's (Nasdaq: FB) May 2012 IPO, which left investors and traders befuddled as to how such a large offering could go sour.
Both NYSE and Nasdaq OMX are trading higher Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Scorpius Holdings (SCPX) Receives Nasdaq Filing Delinquency Notification
- Phio Pharmaceuticals Corp. (PHIO) Reports Intratumoral Injection of PH-762 significantly inhibits tumor growth in murine tumor models and may generate memory-specific T cells
- Vertex (VERX) Reports Prelim Q1 Results
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Twitter, IPOSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
