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Abstract

Breaking the age-old tradition of operating only through the floor-based trading system, New York Stock Exchange (NYSE), in April 2005, announced its merger with Archipelago Holdings, an electronic trading company, to compete with other electronic exchanges of the world. While NYSE aims to increase its market share by tapping new business opportunities in the options and derivatives market, Archipelago plans to capitalise on the brand recognition of NYSE to increase its market presence. The case, while providing a broad overview of the stock exchanges in the US, offers scope to discuss the synergies of the merger and the probable pay offs.
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April 2005

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Abstract

Breaking the age-old tradition of operating only through the floor-based trading system, New York Stock Exchange (NYSE), in April 2005, announced its merger with Archipelago Holdings, an electronic trading company, to compete with other electronic exchanges of the world. While NYSE aims to increase its market share by tapping new business opportunities in the options and derivatives market, Archipelago plans to capitalise on the brand recognition of NYSE to increase its market presence. The case, while providing a broad overview of the stock exchanges in the US, offers scope to discuss the synergies of the merger and the probable pay offs.

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Location:
Industry:
Other setting(s):
April 2005

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