Nasdaq Buying NYSE Euronext?

Wow. Today the Nasdaq (technically Nasdaq OMX) made an $11.3 billion bid to buy NYSE Euronext, hoping to outbid Deutsche Boerse's friendly offer.  So what happens next? Do we allow a German outfit to own the most famous stock exchange in the world, or create a near monopoly that would own the three major US exchanges?

It seems that the NYSE did a good job integrating its purchase of what is now called the NYSE Amex. They positioned the "lower" exchange not as an end game but hopefully a stepping stone for companies ultimately seeking the benefit of trading on the "big board."

What would be if Nasdaq owned it? Would they still need the Amex? How would they position it vs. the Nasdaq markets? And don't forget there's the pending Rodman & Renshaw purchase of the OTC Bulletin Board.

What does this mean for small cap folks like us? As long as there remains a navigable path for smaller companies to obtain listing on a major exchange as they grow, it almost doesn't matter who owns. But one wonders, if one company owns them all, whether the lack of competition will result in fewer battles to offer the best in service, trading capability, data and the like. We shall see!

For additional insights on reverse mergers, SPACs, other alternatives to traditional initial public offerings, the small and microcap markets and the economy, visit the Reverse Merger and SPAC Blog  by David N. Feldman, Esq., Partner of Richardson & Patel LLP.

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