NYSE And Nasdaq Fight Focuses On Fees

Every year the Nasdaq Stock Market receives an estimated $25 million in fees for disseminating information on trades that are done by outside stock exchanges, and now that Nasdaq is near becoming an exchange itself, the New York Stock Exchange wants to stop that cash from flowing.

Every year the Nasdaq Stock Market receives an estimated $25 million in fees for disseminating information on trades that are done by outside stock exchanges, and now that Nasdaq is near becoming an exchange itself, the New York Stock Exchange wants to stop that cash from flowing. The NYSE has argued that exchanges, such as itself, are not permitted to collect such fees. In an effort to avoid a showdown with the NYSE, Nasdaq has proposed a joint venture with the NASD, according to The Wall Street Journal, which would handle these so-called “internalized trades.” Still, the NYSE argues, such a joint venture would give the NASD a leg up on the competition; it has urged the Securities and Exchange Commission and Congress to disallow the joint venture – or at least let others join in it and share in the fees.