Transcripts

The NYSE Goes Global

SUSIE GHARIB: Near round-the-clock trading in stocks, options and futures could soon be on tap here at the New York Stock Exchange. That, as the big board and European stock exchange operator Euronext announced what they`re calling a merger of equals in Paris today. The deal creates a transatlantic stock exchange with a business valued at $20 billion. NYSE Euronext will list its own shares in New York and Paris and be based in New York. Big board CEO John Thain will lead the newly combined exchanges. Thain calls the combination a perfect match.

JOHN THAIN, CEO, NYSE GROUP: We wanted to diversify both product wise and geography wise and we definitely wanted to have a linkage into Europe because of the importance, particularly of the euro as a currency, a global currency and also in terms of the strength of the European economy. The second piece is we wanted to get into the derivative business. The futures business is a very, very good business. It`s growing faster than the cash business and actually Euronext has not only a future`s business, but an options business that fits well with our own options business in the U.S.

GHARIB: Today`s deal caps four weeks of negotiations, but it still could face some hurdles. The combination needs regulatory and shareholder approval both here in the U.S. and in Europe. And the proposed combination could face opposition from the Deutsche Bourse. The German stock exchange said it will continue to press for a partnership with Euronext, despite the NYSE deal in the works. But analysts say it will be hard to beat the NYSE/Euronext combination.

RICHARD REPETTO, BROKERAGE ANALYST, SANDLER O`NEILL & PARTNERS: To this point, we`ve been very conservative on the New York Stock Exchange stock. We actually had rated it "sell." Now, with this deal, based on our numbers, it boosts earnings materially and over time and that now it comes back to where it`s more fully, fairly valued and we`re not saying to rush right in, there`s still some risks that the deal doesn`t get done. You still want to make sure that the integration goes as planned, but we`re saying that you know, it appears much more fairly valued given the earnings potential of the two companies.

GHARIB: Repetto raised his rating today on shares of the NYSE Group from "sell" to "hold." Shares of the NYSE Group jumped $2.06 or 3 percent to $64.51 on the merger news.