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 &
For more information about LexisNexis
products and solutions connect with us through our corporate site.