News Releases

 
NYSE Group, Inc. 2006 Highlights
-Transformation Into Growth Oriented Company Operating Two Separate Exchanges-
-Multiple Products and Trading Platforms-
-Leader in Cash Equities and ETFs, Complemented by Options, Bonds and New Businesses-

 

NYSE Inc. Merger with Archipelago Holdings, Inc.

  • The completion of the NYSE/Archipelago Holdings, Inc. merger on March 7, 2006 marked a historic change for the NYSE as it transitioned from a not-for-profit institution into the publicly traded NYSE Group, Inc (NYSE: NYX). 

  • The landmark merger with Archipelago created new efficiencies, greater innovation, and new business and revenue opportunities while better serving customers and the investing public, and provided superior value to NYSE Group, Inc. shareholders.

  • Through its two securities exchanges; the New York Stock Exchange and NYSE Arca, NYSE Group is the global leader in cash equities and ETF trading. Other product categories include options, fixed-income, over-the-counter equities and market data. 

  • On an average trading day in 2006, 2.35 billion shares, valued at $86.92 billion, traded on the exchange marketplaces of NYSE Group.

 NYSE Group, Inc. Opening Bell, March 8, 2006
Caption:  Ringing the NYSE Opening Bell in celebration of the launch of the new publicly held, for-profit NYSE Group, Inc. (NYSE:NYX) on Wed., March 8, 2006 are: (left to right): President and Co-Chief Operating Officer Jerry Putnam, Chief Executive Officer John A. Thain, Chairman Marshall N. Carter, and President and Co-Operating Officer Catherine R. Kinney.  After the Opening Bell, the stock of NYSE Group began trading on the NYSE. 

Please click on the photo to download a high resolution image. (photo credit: NYSE Group, Inc.)

NYSE Group, Inc. Merger with Euronext N.V.

  • On June 1, NYSE Group and Euronext N.V. announced their agreement to combine the leading U.S.  and pan-European securities trading exchanges in a merger of equals that creates the first truly global exchange group.

  • The proposed merger will redefine the global marketplace for trading cash and derivatives securities, producing significant benefits for shareholders, issuers and users worldwide. Approximately 99.7 percent of NYSE Group shareholders who voted on the proposal approved the proposed combination with Euronext N.V., whose shareholders also overwhelmingly approved this historic transaction. 

  • NYSE Euronext will be the world’s most liquid financial exchange group with a combined market capitalization of approximately €21 billion / $27 billion.  The company will be the world’s premier listing venue and largest cash equities marketplace with a €19.5 trillion / $25.8 trillion combined total global market capitalization of its listed companies, and have global market leadership positions in derivatives, market data and technology.  Average daily trading value of NYSE Euronext will be approximately €77 billion / $102 billion.  The transaction is expected to close in late first quarter 2007.

NYSE Hybrid MarketSM

  • Marking the culmination of a major strategic initiative, NYSE Hybrid MarketSM is transforming the Exchange to a fast market with sub-second turnaround times.

  • With Hybrid, NYSE listed companies and their investors benefit from the best aspects of the auction and electronic interaction of investors, floor brokers and specialists.  Investors are provided efficient, sub-second trades as specialists provide capital electronically to stabilize and improve prices and floor brokers leverage trading expertise at the point-of-sale.

  • NYSE Hybrid enhances market quality: preliminary results indicate that quoted spreads have decreased markedly, while effective spreads have only widened slightly, offset by increases in liquidity, fill rates and the percentage of time providing best price have increased.  Overall, speed and choice of execution have been greatly enhanced, with little impact on volatility.  Upon completion of the roll-out in Jan. 2007, investors will be able to trade the full range of the more than 3,600 securities and products electronically, instantaneously and anonymously, while continuing to benefit from the NYSE’s deep liquidity and opportunity for price improvement.

NYSE Group Listings and IPOs

  • Strong listings momentum continued in 2006 with 28 transfers from other markets (up from 16 last year) and 29 non-US company listings (up from 19 in 2005) to NYSE Group markets, including NYSE Arca, for a total of 206 new listings in 2006 on NYSE Group markets.

  • IPOs on NYSE Group markets by operating companies raised a total of $25 billion in proceeds (excluding funds) in 2006.  Total IPO proceeds on NYSE Group markets were $34.9 billion, including funds, non-US companies, and NYSE Arca.  There were 18 IPOs by non-US companies this year, the highest number since 2000, raising $6.5 billion. Companies that went public on NYSE Group markets include industry leaders MasterCard (NYSE: MA), Chipotle Mexican Grill, Inc. (NYSE: CMG), J. Crew (NYSE: JCG), Tim Hortons (NYSE: THI) and NYMEX (NYSE: NMX), the year’s best-performing IPO.

  • Transfers to NYSE Group markets from Nasdaq include industry leaders Safeco (NYSE: SAF), Red Hat (NYSE: RHT), and Under Armour (NYSE: UA), bringing the total number of transfers from Nasdaq this year to 13 with a $42.8 billion total market capitalization.  In all, 28 transfers with a total market capitalization in excess of $60 billion joined NYSE Group, Inc. from other markets.

  • The 29 non-US listings on NYSE Group markets this year sharply exceeded the level of 2005, with Japan’s Mizuho (NYSE: MFG), India’s WNS Holdings Ltd. (NYSE: WNS), Germany’s Qimonda (NYSE: QI) and Brazil's TAM S.A. (NYSE: TAM) adding high-profile companies to the NYSE list.  China’s New Oriental (NYSE: EDU), Mindray Medical (NYSE: MR), and American Oriental Bioengineering (NYSE:  AOB) were followed late in the year by Trina Solar (NYSE: TSL), the fourth company from China to list on the NYSE in 2006, and the latest in the growing roster of high-growth entrepreneurial Chinese NYSE-listed companies.  The NYSE now lists 33 companies from Greater China with a total $913 billion market capitalization. Eight Canadian companies joined the NYSE’s roster of 451 non-US companies from 47 countries.  Average daily value of trading of NYSE-listed non-US companies was $7.2 billion.

  • The new NYSE ArcaSM listing platform attracted a total of 26 exclusive listings since its launch early this year. Darwin Professional Underwriters (NYSE Arca: DR) joined NYSE Arca as the first IPO to list after the merger of NYSE and Archipelago; BFC Financial Group (NYSE Arca:  BFF) joined as the first transfer from Nasdaq; Evergreen Energy Inc. (NYSE: EEE) joined as the first transfer from American Stock Exchange; Energy Metals Corporation (NYSE Arca: EMU) joined as the first non-US company to list on NYSE Arca. Additionally, 19 exchange traded funds (ETFs) listed on NYSE Arca through Barclays Global Investors (BGI).  (This data broken out for NYSE Arca only – note these were included in the NYSE Group total in the prior section.)

Closed End Funds

  • The 19 Closed End Funds – 95% of those that qualified - listed on NYSE Group markets in 2006, raising a total of $9.4 billion.  This includes the $2.62 billion IPO of Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY), the largest closed-end fund IPO in history.

Exchange Traded Funds

  • As a leader in listing and trading ETFs, NYSE Group handled 43.2% of all ETF shares traded in the U.S.  market through Nov. 2006.  With 135 total primary ETF listings, NYSE Group is committed to offering investors the most innovative new investment options with superior pricing and market quality.  With new listings from iShares®, WisdomTree and Rydex, NYSE Group added 71 primary listings to the NYSE and NYSE Arca exchanges.

Structured Products

  • The NYSE’s Structured Products Group listings increased 50% over 2005 to 64, valued at $30 billion, more than twice the 2005 listings.  Ten companies issued securities that raised over $1 billion. 

  • Many of the largest deals in 2006 were offerings of enhanced trust preferred, or hybrid, securities.  Additionally, three companies already listed on other securities exchanges selected the NYSE as the listing venue for capital and retail debt securities – Comcast Corporation, Selective Insurance Group, and Citizens Banking Corporation.

Market Quality

  • NYSE Group is dedicated to maintaining its position as one of the lowest cost providers of transaction services in the world.  In a recently issued research report, independent research firm Elkins/McSherry found that NYSE listed equities have the world’s lowest all-in trading costs.

  • The NYSE consistently delivered lower trading costs than Nasdaq in all major independent research including studies by Elkins/McSherry, ITG Plexus and Abel/Noser.

Acquisitions

  • As a newly-public company, NYSE Group made several acquisitions and purchased strategic stakes in other companies to further enhance its technology, trading systems and future product offerings.  Ownership of, or strategic financial positions in MatchPoint Trading, TransactTools, Marco Polo and SIAC support the NYSE Group’s mission to offer customers the most diverse and comprehensive menu of products and services in the securities industry, creating an incomparable mix of user driven technology solutions.

MatchPoint: Combines cutting edge trading technologies with veteran crossing industry expertise to develop and establish highly attractive crossing opportunities for institutions and brokers.  Announced July 19, the purchase of MatchPoint’s expansive and innovative trading technology will enhance the suite of crossing services provided by the NYSE Group in the first quarter of 2007.  

Marco Polo: Offers intra-market connectivity and routing to brokers and exchanges in more than 40 emerging markets and provides investors with access to more than 90% of the MSCI emerging markets index.  Completed on Sept. 18, the agreement provides NYSE Group, Inc. with an ownership stake in Marco Polo Network, and one seat on the company’s Board of Directors.

SIAC (Securities Industry Automation Corporation): Plans, develops, implements and manages a variety of automated information-handling and communications systems that support order processing, trading, market data reporting, trade comparison and surveillance.  Completed on Nov. 1, NYSE Group now wholly owns SIAC, including its Sector, Inc. and SFTI® subsidiaries.

TransactTools: Develops enterprise messaging applications and electronic trading connectivity solutions for the securities trading industry.  Expected to close in January 2007, TransactTools will be integrated with the NYSE Group’s SFTI and Sector businesses to form a single commercial unit.

New Business Initiatives

  • As one of the synergies identified in the merger with Archipelago, NYSE Group leveraged NYSE Arca's core technology to develop its next generation bond trading platform, NYSE BondsSM.  As part of the expansion of its bond trading system, the NYSE requested and received an exemption from the SEC to begin trading the unlisted debt securities of NYSE-listed companies and their wholly-owned subsidiaries.  NYSE Bonds will provide investors with unparalleled transparency and strict price time priority in a cost effective platform designed to support high speed transactions.

  • In the fourth quarter of 2006, NYSE Group completed the launch of NYSE Arca Options, offering automatic executions for customer and broker dealer options orders.  Designed as a cost-efficient venue for both Lead Market Makers and Market Makers to stream quotes from the trading floor or remotely, the platform offers immediate electronic order execution in nearly 2,000 options issues.  NYSE Group is actively growing its share in these highly competitive products with over 10% of the domestic trading in the options market coupled with 37.6% volume growth since Nov. 2005.  NYSE Group also announced the additions of new Lead Market Makers: SLK-Hull Derivatives, Credit Suisse Securities and UBS Securities, as well as its SEC filing to begin a six-month penny quoting pilot program.

  • The NYSE announced that it will create a Trade Reporting Facility (TRF) for customers seeking a reliable and competitively priced venue to report internally executed transactions.  There will be no transaction or reporting fees for the NYSE TRF and the Exchange plans to introduce a competitive market data fee-sharing program.  Subject to SEC approval, the trade reporting facility is expected to be available in the first quarter of 2007.

NYSE Group Volume Growth

  • In 2006, NYSE Group experienced substantial volume growth across all its platforms.  By developing the industry’s most cost efficient, feature rich systems, NYSE Group continues to develop and expand its standing as the world’s largest multi-asset class marketplace.

NYSE Group, Inc. Average Daily Volume Summary

(Unaudited; shares in millions and contracts in thousands)

 

2006 YTD

2005 YTD

12-Month Growth

Number of Trading Days

251

252

 

 

 

 

 

NYSE Listed Issues 1

 

 

 

NYSE Group Matched Volume 2

1,827

1,647

10.9%

NYSE Group Handled Volume 3

1,867

1,673

11.6%

 

 

 

 

NYSE Arca & Amex Listed Issues

 

 

 

NYSE Group Matched Volume 2

111

77

43.2%

NYSE Group Handled Volume 3

127

89

42.5%

 

 

 

 

Nasdaq Listed Issues

 

 

 

NYSE Group Matched Volume 2

406

326

24.4%

NYSE Group Handled Volume 3

496

409

21.3%

 

 

 

 

Exchange-Traded Funds 1,4

 

 

 

NYSE Group Matched Volume2

156

96

61.6%

NYSE Group Handled Volume 3

173

108

59.7%

 

 

 

 

Equity Options 5

 

 

 

NYSE Group Options Contracts

783

575

36.3%

1 Includes all NYSE Group Crossing Sessions.
2 Represents the total number of shares of equity securities and exchange-traded funds (ETFs) executed on the NYSE Group's exchanges.
3 Represents the total number of shares of equity securities and ETFs internally matched on the NYSE Group's exchanges or routed to and executed at an external market center.  NYSE Arca routing includes odd-lots.
4 Data included in previously identified categories.
5 Includes trading in U.S. equity options contracts, not equity-index options.
Source: Consolidated Tape as reported for equity securities, and Options Clearing Corporation

  • On June 8, 2006 , NYSE Arca achieved a new all-time record in daily trading volume with 1.49 billion shares traded, representing a value of $55.0 billion. On April 27, NYSE Arca volume surpassed 1.0 billion shares for the first time.  Including this milestone, NYSE Arca volume exceeded 1 billion shares24 times during the year.  NYSE Arca has captured more than 25% of trading in Nasdaq stocks by providing excellent market quality, as measured by its superior effective spreads and speed.

Market Data

  • The NYSE is committed to offering investors the most useful and innovative market data products, giving customers a unique view of trading on the NYSE.  In 2006, the NYSE launched OpenBook Real-Time with quotes, BrokerVolume with specialist participation figures, and the InfoTools suite of products.  Bringing a new level of depth and transparency to NYSE market information, these subscription-based products are available for free trial at http://www.nysedata.com.

  • Additionally, nyse.com added several new free features based on the InfoTools and BrokerVolume products.  BrokerVolume Top 10, which is available in the market data module on the NYSE Group homepage, ranks the top ten NYSE member firms by volume for all NYSE-traded securities.  As part of the InfoTools family of products, ProTrac and ReTrac data are available for all NYSE-traded issues quoted on nyse.com.  Measuring the program trading and retail trading activity for each individual stock respectively, ProTrac and ReTrac provide investors with end-of-day reports for the previous day’s trading.

Other Initiatives

  • Continuing to find ways to make the NYSE and NYSE Arca the most attractive trading venues in the world, NYSE Group announced pricing changes for both exchanges.  Making NYSE Group pricing more transparent, competitive and efficient, these changes underscore the NYSE Group’s commitment to leveraging its dual exchange model to benefit investors and customers.

  • The NYSE launched two new indexes, the NYSE IPOX Composite (NYSE: IPO.ID) and NYSE IPOX U.S. Indexes (NYSE: IPY.ID), which provide investors with transparent and systematic exposure to recent initial public offerings (IPOs) and spin-offs listed on the NYSE.  Created to offer investors enhanced information and unique insight into this segment of the NYSE market, the IPO/Spin-off tracking indexes represent some of the world’s best performing and most recognizable companies.

  • Government leaders and official visitors to the NYSE this year included Governor Jon S. Corzine; Shaukat Aziz, Prime Minister of the Islamic Republic of Pakistan; U.S. Attorney General Alberto R. Gonzales, Opening Bell; Federal Communications Commission (FCC) Chairman Kevin J. Martin; U.S. Treasury Secretary Henry M. Paulson, Jr.; R. James Nicholson, Secretary of Veterans Affairs; U.S. Secretary of Education, Margaret Spellings; Mrs. Laura Bush, First Lady of the United States of America, Closing Bell; and Michelle Bachelet, President of Chile; as well as director of the Office of Management and Budget, Joshua B. Bolten.

  • On Dec. 15, as a result of the first Strategic Economic Dialogue initiative between the governments of China and the United States, NYSE Group announced that it can proceed with opening a business office in Beijing, China.

  • The NYSE Composite Index (NYA), which closed the year at a record high, continued to outperform all other broad based indexes again in 2006.  Designed to measure the performance of all common stocks, ADRs, REITs, and tracking stocks listed on the NYSE, the NYA finished the year with a gain of 17.9%.  This was greater than the 16.3% increase that the Dow Jones Industrial Average achieved in 2006.


      

 

About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange LLC (the “NYSE”) and NYSE Arca, Inc. (formerly known as the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. In 2006, through November 30, on an average trading day, 2.4 billion shares, valued at $87.2 billion, were traded on the exchanges of the NYSE Group.

The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities.  On November 30, 2006 , the operating companies listed on the NYSE represented a total global market capitalization of $24.5 trillion.

NYSE Arca, Inc. operates the former ArcaEx®, the first open, all-electronic stock exchange in the United States , which has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca, Inc. is also an exchange for trading equity options.  NYSE Arca, Inc.’s trading platforms provide customers with fast electronic execution and open, direct and anonymous market access.

NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.

For more information on NYSE Group, go to: www.nyse.com.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on NYSE Group’s current expectations and involve risks and uncertainties that could cause NYSE Group’s actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group’s results to differ materially from current expectations include, but are not limited to:  NYSE Group’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group’s Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. NYSE Group undertakes no obligation to release any revisions to any forward-looking statements.

 

Contact: Christiaan Brakman
Phone: 212.656.2094
Email: cbrakman@nyse.com



Contact: Eric Ryan
Phone: 212.656.2411
Email:  eryan@nyse.com