NYSE Takes Over 131-Year-Old Exchange Once Tied to Bernie Madoff
The New York Stock Exchange is taking over a tiny 131-year-old market that Bernie
Madoff helped turn into a pioneer of electronic trading. NYSE’s parent, Intercontinental Exchange Inc., didn’t
disclose how much it’s paying for the National Stock Exchange, which last week announced plans to close
Dec. 16. It’s a minuscule business, handling only 0.01 percent of U.S. stock trading versus almost a quarter at
markets owned by NYSE.
Our Take: It’s interesting amid all the talk about too many venues and too much complexity in US equity market
structure that two of those venues recently decided to shut down. To be sure, fragmentation and complexity are
baked into our markets by such measures as the “trade-through rule” in Regulation NMS (which forbids brokers
from executing trades at prices worse than exchanges’ best bids and offers)…
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