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October 14, 2009

NYSE Amex to Trade Nasdaq Stocks

By Nina Mehta

NYSE Amex will soon be trading all Nasdaq-listed stocks. The exchange plans to add Nasdaq stocks to the names it trades early in the first quarter of next year. The QQQQs will be included in that list.

As part of this expansion, NYSE Euronext, which operates the Amex market, will have a single designated market maker for every Nasdaq stock. One or more additional market makers, which the exchange operator calls supplemental liquidity providers, will also be assigned to most securities.

"The overall model will be largely consistent with the current Amex market model, which is based on the NYSE model, with some differentiation to reflect the fact that we're not the listing market," said Joe Mecane, executive vice president for U.S. markets at NYSE Euronext. He added that, at least initially, there would be no open and closing auctions for Nasdaq securities on the Amex market. Amex will trade the securities only intraday.

Amex, of course, has tried this in the past. In 2002, Amex began trading Nasdaq-listed stocks. That venture never really took off, in part because Amex's technology platform was deemed too slow to compete. Now, however, the structure of the markets has changed and Amex has a new platform, courtesy of NYSE Euronext.

"It's a good move for the NYSE and it'll be good for investors to have an additional market destination providing liquidity in Tape C stocks," said Jamil Nazarali, managing director of Knight Equity Markets.

 

 

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