The New York Stock Exchange will this year add independent research for small- and mid-cap companies listed on NYSE Arca, formerly Archipelago, in hopes of attracting more listings. It is in talks with several providers, and should have it available by the year-end, said Noreen Culhane, executive v.p., global corporate client group at NYSE. She declined to disclose the identity of the potential providers. Arca migrated over 200 small- and mid-cap companies to the Big Board when it was acquired last year, many of which have less than a handful of analysts covering them. The Big Board currently does not offer research on any listed companies. Competitor Nasdaq Stock Market launched the Independent Research Network last year to attract listings and provide services for its smaller companies.
“Currently, about 30% of IPOs are eligible for listing on the NYSE, but we will be able to attract two thirds of that market by providing access to high quality markets, information, and services [via Arca],” Culhane said. Besides research, which should become available by the second half of the year, the NYSE is actively talking to dozens of market makers to generate liquidity for the NYSE Arca listings. The goal is to attract liquidity providers for all these listings by the year-end, Culhane said, noting that the Securities and Exchange Commission has not approved the program yet. NYSE specialist LaBranche & Co. has already expressed interest (WSL, 5/1). Any deal NYSE strikes isn’t likely to affect any of the 2,700 large-cap companies that originally listed on the Big Board, as many have widespread analyst and market maker support, Culhane said.