Wall Street

by Joseph Weisenthal

Filed Under:
banks, wall street

citigroup, goldman sachs

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

Subscribe: RSS

View by: Time | Thread

  • identicon
    Palmyra, 23 Jul 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 chronology ]

  • identicon
    Cake Walk, 23 Jul 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 chronology ]

  • identicon
    andy, 23 Jul 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 chronology ]

    • identicon
      Mystified, 23 Jul 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 chronology ]

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


    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 chronology ]

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Techdirt Gear
Shop Now: Copying Is Not Theft
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.