21 December 2016


Justin Schack

Managing Director    

Anish Puaar

Vice President    

Rosenblatt Securities Inc.    
New York +1 212 607 3100    

Rosenblatt's Market Structure News Digest

NYSE Takes Over 131-Year-Old Exchange Once Tied to Bernie Madoff
—Bloomberg News

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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