NYSE Euronext (NYX) Highlighted in Forbes Article
In reviewing the financial documents of the financial facilitators NYSE Euronext (nyse: NYX), Franklin Resources (nyse: BEN), Bank of New York (nyse: BK), the growth in revenue and earnings for most of these companies has been astounding and appears to be accelerating. We are highly optimistic that pessimism and hedge strategies will continue to flourish.
As an aside, the world's various financial exchanges garner an incredible amount of press and discussion but are still, in our opinion, largely misunderstood. The typical financial analyst discusses market share rather than volume processed and focuses on the notions that new trading platforms will lower fees and that the NYSE and Nasdaq are allegedly engaged in a bitter competitive fight. In point of fact, lower fees as well as qualitative improvements, such as faster executions, invite more trading volumes, thereby expanding the entire market. Thus, irrespective of market share shifts, there has been no diminution of the NYSE's historical and fairly rapid volume growth. Irrespective of these dynamics, both have recently instituted fee increases.
Yet, there can only be upside for the NYSE, as it currently receives virtually nothing from the Internet-related companies. Imagine the repercussions of a NYSE-created financial Web site, in cooperation with Nasdaq, and which would offer the only real-time quotes available to the public. This could even be offered free of charge. The traffic that would be directed to this Web site would be enormous, as would the advertising revenue engendered. None of this information is available in the NYSE's financial statements. Nor does this potential change currently provide any economic benefit. This situation, however, is not likely to be a permanent condition. The economic implications of this issue are staggering.
Read Full Article on Forbes.com
As an aside, the world's various financial exchanges garner an incredible amount of press and discussion but are still, in our opinion, largely misunderstood. The typical financial analyst discusses market share rather than volume processed and focuses on the notions that new trading platforms will lower fees and that the NYSE and Nasdaq are allegedly engaged in a bitter competitive fight. In point of fact, lower fees as well as qualitative improvements, such as faster executions, invite more trading volumes, thereby expanding the entire market. Thus, irrespective of market share shifts, there has been no diminution of the NYSE's historical and fairly rapid volume growth. Irrespective of these dynamics, both have recently instituted fee increases.
Yet, there can only be upside for the NYSE, as it currently receives virtually nothing from the Internet-related companies. Imagine the repercussions of a NYSE-created financial Web site, in cooperation with Nasdaq, and which would offer the only real-time quotes available to the public. This could even be offered free of charge. The traffic that would be directed to this Web site would be enormous, as would the advertising revenue engendered. None of this information is available in the NYSE's financial statements. Nor does this potential change currently provide any economic benefit. This situation, however, is not likely to be a permanent condition. The economic implications of this issue are staggering.
Read Full Article on Forbes.com
Labels: BEN, BK, NYSE Euronext, NYX
posted by Stock Administrator @ 4:33 PM
0 Comments:
Post a Comment
<< Home