Recent Fee Relief Intensifies Competition Between NYSE And NASDAQ

Intensified competition between NYSE and NASDAQ for company listings could provide a unique cost-saving opportunity to companies that are considering a near-term listing on NYSE but do not initially meet NYSE’s listing qualifications.The SEC recently approved a petition by NYSE Group, Inc. that will enable companies that initially list on NYSE Arca to subsequently transfer their listings onto NYSE without paying NYSE’s initial listing fees (which can be as high as $250,000 for large companies) or prorated annual fees ($930 per million shares, or $93,000 for a company with 100 million shares listed) for the first partial calendar year.

In an effort to compete with NASDAQ for growth companies, NYSE Group, Inc., acquired the fully electronic stock exchange now known as NYSE Arca in March 2006. NYSE Group is marketing its multiple listing platforms as an integrated suite, positioning NYSE Arca as an alternative listing venue for growth companies whose ultimate objective is to list on