Mergers, Acquisitions and Takeovers Case Study

NYSE's Planned Merger with Archipelago Holdings : The Synergies

OR

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.

Pedagogical Objectives:

• To provide an overview of the stock exchanges in the US
• To discuss the synergies of the merger and the probable payoffs.

Keywords : Mergers,Acquisitions,Alliances Case Study;NYSE (New York Stock Exchange); Archipelago Holdings; Potential synergies; Nasdaq; US Stock Exchanges; Electronic Communication Network (ECN); Securities and Exchange Commission of US; Instinet; Consolidation in Europe stock markets; London Stock Exchange; ArcaEdge; Regulation National Market System; John Thain; Jerry Putnam

Contents : 
US Stock Exchanges: A Competitive Scenario
Consolidation of Stock Markets in Europe
NYSE – Archipelago Merger: Potential Synergies
NYSE and Nasdaq Trading
Regulation National Market System (NMS)