An Assessment of the Competitive Effects of the Proposed Merger of the New York Stock Exchange and the Nasdaq Stock Market
61 Pages Posted: 30 Sep 2020
Date Written: June 1, 2000
In March of 2000 the New York Stock Exchange proposed a merger with The Nasdaq Stock Market. Applying a qualitative assessment to the proposed merger from the organizations' perspective it is argued that the merger would be favorable for both organizations. Applying a quantitative assessment to the proposed merger from an antitrust perspective it is shown that the merger should be disallowed by federal antitrust regulators if the industry is to be treated as any ordinary industry.
Keywords: New York Stock Exchange, NYSE, Nasdaq, antitrust, competition, Herfindahl-Hirschman Index, merger, stock exchange, financial market, equity market, market efficiency, trading, liquidity, transparency, order book, limit order, specialist, market maker, electronic communication network, ECN
JEL Classification: G14, G15, G18, G23, G34, G38, K21, L11, L12, L15, L40, L43
Suggested Citation: Suggested Citation