Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Wall Street's top financial firms are providing more of a challenge to the NYSE and Nasdaq by matching up buyers and sellers directly, thus circumventing use of the exchanges. With the top five firms by volume - UBS, Goldman, Morgan Stanley, Merrill and Lehman - expected to pay nearly $100 million in trading commissions to the NYSE and Nasdaq this year alone, they are looking to avoid the exchanges whenever possible. The firms already steer 12% of their trades into their own internal pools - a move that also allows traders an added level of secrecy - and the number is expected to increase to 18% by 2010. The size of such trades would be large enough to move equity prices were they to take place on the open market.
Related links: Commentary: NYSE: Gains Are Far From Automatic • A Unified, Global Stock Exchange May Be Approaching • Exchange Stocks: Beware The Bear.
Potentially impacted stocks and ETFs: NYSE Group (NYX), Nasdaq Stock Market Inc. (NDAQ), Goldman Sachs (GS), UBS AG (UBS), Morgan Stanley (MS), Lehman Brothers (LEH), Merrill Lynch (MER) • ETFs: iShares Dow Jones US Broker-Dealers Ind. (IAI), iShares Dow Jones US Financial (IYF), iShares Dow Jones US Financial Svc. (IYG), Vanguard Financials ETF (VFH).
Seeking Alpha is not affiliated with Bloomberg.
This article was written by