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FBN’s Charlie Gasparino on a potential deal for the IntercontinentalExchange to take over the NYSE.
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Just moments ago are -- on Charlie Gasparino broke the story of a possible combination between IntercontinentalExchange.
And the NYSE.
He has more details now Charlie.
-- this is shaping up to be less of a combination a more of a takeover.
You know what's sources are telling us that here -- -- -- was never -- sources close to the deal is that the if this deal goes through and it does need regulatory approval.
Nice would be taking over the New York Stock Exchange and easy to -- their simple math on why that is while that is because.
Myself -- the IntercontinentalExchange.
Has twice as large of a market cap -- New York Stock Exchange Intercontinental exchange's market cap.
Is in the neighborhood of nine plus billion dollars the New York Stock Exchange is market cap is in the neighborhood of five plus billion dollars so there is.
It's a take over we should point out that the management has not been determined just yet.
But -- -- -- point this out and this is a big story and I'll tell you why the New York Stock Exchange.
He's always been you know known as the epicenter of finance.
Of capitalism Dick -- turned it into kind of a show that celebrating Peter when he was running -- stock exchange celebrated capitalism every day and guy John and and Duncan -- the new CEO tries to do that as well.
That sort of independence was sort of a hallmark of an exchange -- a floor where actual people trade -- they still do that over there.
But we should point out under this deal the IntercontinentalExchange.
And I believe they're located in the Atlanta.
And I will tell -- the IntercontinentalExchange is that many people it's essentially a computer.
And -- computer will be taking over.
The sort of -- ground of capitalism which is the New York Stock Exchange if this deal goes through it is I guess you could say.
A story of technology.
Winning.
We'll travel writer -- -- what about -- yeah.
You're aliens and computer is taking over.
The iconic new York stock -- yeah.
It's come to that's I mean -- didn't talk about computer trading all the time and people using the super fast computers.
Tom well.
EEE they'll Duncan Niederauer is is a great businessman and I believe and he understands that am -- but being bought by.
The IntercontinentalExchange.
In a bad thing for the New York such as -- New York Stock Exchange.
Primarily deals in the it is sort of market making of stocks right broad matching buyers and sellers of equities.
If continental change will bring derivatives commodities all these other things that it -- these other securities that are you know sold by companies and trade in the market.
And it'll bring -- to a brand dead of the New York Stock Exchange which you know is to one of the premier brands and I know.
Bob Greifeld that that NASDAQ -- we discourage this but I think it's fair to say the New York Stock Exchange is the premier brand for the trading trading of stocks in in the market and it's gonna merge those two together and it's a pretty -- powerful combination remember.
Greifeld teamed up with ice to take over the New York Stock Exchange early -- year.
You know that didn't that fell through because of regulatory problems we should point out that Deutsche Boerse.
52 and the New York Stock Exchange teamed up -- that and that would have created this sort of -- a massive.
In interior global exchange -- -- that was talked debt that was that was turned down by global regulators.
This one does have to -- regulatory approval I think it has a better shot because -- it's not all the stocks in one place member ice brings the commodities right.
Let me -- got all these stocks -- Charlie said in your last hit.
But there's going to be big announcements tomorrow morning so how is this going to be rolled out -- you -- What think they're gonna come out tomorrow I don't know if there's going to be a press conference I -- I heard they're not planning a press conference.
But watch -- do press conference just to prove me wrong.
-- to that's what I heard but I.
You know I think the I didn't I didn't Duncan Niederauer the CEO of the New York Stock Exchange is probably.
Going to go to speak with you tomorrow we should point out that the guy that -- The -- the ice directly or just record.
I believe -- -- claimant has as a -- you know knows him pretty -- really should put them I'm pretty sure he's going to be out there took another he takes a much more of a backseat.
On a lot of stuff.
So we'll see exactly how this gets rolled out I will tell you this -- -- where -- you like it or not this is a take over the iconic New York Stock Exchange.
You know that he won't be running the show now it wasn't around the show the Deutsche Boerse -- what they should back up to Deutsche Boerse was gonna take over the New York Stock Exchange but I believe.
NYSE management was gonna run was gonna run a lot of the stuff -- -- -- of.
Primarily -- My originally to be -- decommissioning will -- I wanna ask you you know every journalist in New York knows Duncan Niederauer OK we all know him it seems to legal likelihood of his running this combined company had not so hot.
I don't know I mean half and half that we have to me says listen -- -- been there for while he's looking for an exit plan what better way to do the exit then do -- transformational deal.
And make is Cheryl is a lot of money not a bad way to leave given how some people leave Wall Street these days.
That said he's not an -- I believe Duncan's about 55 -- B wants I think Duncan is is a very ambitious guy in in in a good way.
And I think you know he would like to run something.
You know maybe can maybe if they get rid of Lloyd Blankfein of Goldman Sachs tells you couldn't go back to -- -- -- I don't know but I -- I think this is a guy we're going to be talking about for awhile terms of either here or someplace else.
But -- beaches in Seattle manager what is it we're -- we're all focused on Duncan he's being acquired.
By why do Atalanta -- is made strict clear we I don't I don't talk to Jess Franklin the guy that runs and ice but only a multi gazillion everybody.
Clay senatorial candidate and -- always in Atlanta billionaire and he doesn't get a lot of play he likes stayed on the that that are.
Radar the last -- news out of the radar was obviously when he teamed up with Bob Griffin and as it to do and hostile bid.
On the New Yorkers can now they're back in -- -- that -- in New York apparently together.
-- what does this tell you about the state of the stock market business because he's so well pointed out their last hit.
This -- industries companies -- public now these aren't organizations.
That you know come together for the good of everybody tends to -- these reported to have -- make money.
You know what -- we we just talked about we can draw a little bit of a narrative thread with what happened with night right Knight securities.
Who's been boy is -- bull by gecko that was a bidding war between virtue and Gekko both high frequency firms.
Why would they want night -- they want night because they get the retail order flow of -- they -- or night gets all these orders from retail brokers.
And they match him right.
Both of those virtue in -- would want that why they want that -- volumes are down in their other traditional business that high frequency trading up that they do so they need that business.
Duncan Niederauer is feeling the same -- Would volumes being down you know he doesn't have a daily -- people -- trading stocks he has to diversify he has to go to other businesses.
Quite frankly he's got it easy to get -- buy something build it.
Or merge with somebody to create shareholder value the best way to create shell -- shoulder valued.
Is to merge with a firm or to be -- is what's going on -- and he's creating share value that stock is.
NYC shares are surging right now.
You know we did is to create shareholder value by selling.
And selling to an organization that's.
You know what I -- -- I talking about -- bush lucky company here this is a pretty.
This is this is that it looked shares -- -- pretty of 8312 point 88 help offset a little bit wow that's it just ended I guess.
No one really understands the deal just yet.
OK if you want to -- great job of breaking the story in the last few seconds.
Ask you this bid were up against a break here.
Almost immediately but right -- back five -- look at this industry where's it going are we gonna end up with just one exchange at some point.
Yes blood right -- New York -- it it'll be consolidated.
I wouldn't be surprising three years from now that that new York stock -- buys NASDAQ alleviate that cowboy Charlie thanks for that appreciate your time of the breaking news.
