More Banks Set To Establish Their Own Stock Exchanges

from the privately-public dept

Last week, private equity firm Apollo Management announced that it would sell shares of itself on a private stock exchange run by Goldman Sachs. Because the exchange is closed to most investors, companies listing on it don't have to comply with various government regulations, which they would if they were to list on, say, the New York Stock Exchange. Considering all of the headaches associated with being a public company these days, this option may look increasingly appealing for companies looking for an alternative way to raise money and give its owners liquidity. It's not surprising, then, that many of the big name investment banks, including Citigroup, JP Morgan, Lehman Brothers, and Morgan Stanley are all rushing to build out their own private, electronic stock exchanges. The question, however, is whether or not these various exchanges will be compatible or whether they'll be islands, with little inter-exchange trading. If they're the former, then a robust alternative market could flourish. If it's the latter, then the appeal to both traders and companies is likely to be limited.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Palmyra, Jul 23rd, 2007 @ 11:43am

    Fools and their

    money will be soon parted if the invest in unregulated exchanges.

     

    reply to this | link to this | view in thread ]

  2.  
    identicon
    Cake Walk, Jul 23rd, 2007 @ 1:20pm

    new stock exchanges

    And the rich will keep getting richer....faster...since they can now change the rules of the game to suit their own interests.

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    andy, Jul 23rd, 2007 @ 1:57pm

    dirty commies

    these exchanges aren't "unregulated," they're just subject to different regulations.

    the company could have just as easily issued some bonds and — as long as the number of shareholders was low enough, etc... — stayed away from sarbanes-oxley headaches.

    there's nothing shady about this... they're not changing the rules of the game, they're playing a different game... AND IT STILL HAS RULES.

     

    reply to this | link to this | view in thread ]

  4.  
    identicon
    Mystified, Jul 23rd, 2007 @ 4:08pm

    Re: dirty commies

    OK andy - cite some of those rules! Just who will regulate the companies on these new exchanges to keep them from doing the naughty deeds Sarb-Ox is intended to stop?

     

    reply to this | link to this | view in thread ]

  5.  
    identicon
    Dave Deerak, Aug 5th, 2007 @ 6:42pm

    Scam

    BX, and VG were basically two hairs away from being unlistable on the NYSE. BX gives hareholders very limited ownership rights, and VG held MUCH news private and blackboxed their numbers.


    the stock prices since IPO speak for themselves. Goldman's exchange will soon be in direct competition with the penny stock sin the pink sheets market. NYSE is shaking in their boots im sure. I hope this gets bigger and GS's market picks up, id short EVERY stock at ANY oppertunity. Ask yourself, what is the company hiding that they had to list themselves on a lax, unregulated, bias toward the executives market? SHORT SHORT SHORT

     

    reply to this | link to this | view in thread ]


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