Posted on 12/23/2004 4:24:26 PM PST by nickcarraway
SAN FRANCISCO (Dow Jones/AP) -- Charles Schwab Corp. will sell its three New York Stock Exchange seats and no longer maintain a membership at the exchange after the sale is completed.
The move follows the company's sale of its capital markets and trading business earlier this year and previously announced efforts to cut costs.
(Excerpt) Read more at sfgate.com ...
Kind of surprising. He has been quite the success story.
he sure was or is.......company went down hill after he left as co CEO and let Dave Pottruck take over and there were some very confusing and lame mgmt decisions. I know, I work as an investment broker there. Hopefully now that Chuck is back they can right the ship again
Stock trading takes place 24 hours a day, 365 days a year. Notice the "before the bell" and "after the bell" items in the business web sites.
The NYSE isn't open even 25% of the time that stocks can trade. Why pay for a seat there? Prestige? Not if it means charging me more per trade, thank you very much.
additionally, there has to be real concern about any eventual restructuring of the NYSE, including dropping seat prices due to continued defection of volume to third markets and ecn's, possible new seat additions, etc.
Notably, Schwab recently sold Mayer and Schweitzer (their nasdaq market making arm) to UBS, so I guess schb is getting out of the market business completely.
I think the specialist system (NYSE, AMEX) is next on the list of things to have the punch bowl taken away. Nasdaq nms/nsc market makers have already been reduced to order clerks for the most part, with the largest (NITE) now CHARGING customers to execute orders (.003), with no liqudity rebate option.
Who on earth would use them versus an ecn where at least some order flow is rebated versus charged?
Well, since this is a wall-street related thread, if anybody here happens to work in an Investment Bank please message me.
Thanks!
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