Presentation on theme: "1 The Official Switch Scoreboard Issuer Advisory Group LLC The following slides set forth the details of switches between the NYSE and Nasdaq. Three SEC."— Presentation transcript:
1 The Official Switch Scoreboard Issuer Advisory Group LLC The following slides set forth the details of switches between the NYSE and Nasdaq. Three SEC mandated market reforms several years ago led to increased competition in this arena, once dominated by the NYSE. Those reforms were: The repeal of Rule 500 (which required a shareholder vote to switch) The implementation of Reg NMS (which embraced electronic trading) Symbol Portability (which gave companies the right to keep their symbol) Once implemented, these changes had a profound effect. Nasdaq quickly grabbed the momentum and handily won the competition in 2008 and 2009. The NYSE responded in 2010 by reversing this momentum with its best performance in nearly a decade. Nasdaq won the competition in 2011 in terms of Market Cap, while the NYSE landed more companies. Since symbol portability was permitted, 37 companies have moved to the NYSE from Nasdaq, while 32 have moved the other way. However, switches to the NYSE aggregated only $88 Billion in Market Cap, while the Market Cap of switches to Nasdaq totaled $214 Billion. Hence, while the NYSE has landed 5 more switches over the four year period, Nasdaq has won more than twice the market cap of that secured by the NYSE. The trend line is now very clear: switches to Nasdaq do so to reduce their annual listing fee and to capitalize upon substantial co-branding incentives. Conversely, companies not subject to a material fee increase migrate to the NYSE primarily for brand affiliation. December, 2011
2 NYSE vs Nasdaq The Official Switch Scoreboard – A Changing Tide NYSE vs Nasdaq The Official Switch Scoreboard – A Changing Tide Issuer Advisory Group LLC Number of CompaniesMarket Cap of Companies ($ in Billions) NYSE in Blue / Nasdaq in Red IAG Note: To ensure comparability between periods, only companies with greater than $100 million in market cap have been included (eliminates AMEX confusion). Totals also include only the domestic market cap of Vodafone (global mc = $132B). Rule 500 Repealed Symbol Portability Rule 500 Repealed Symbol Portability
3 The Official 2011 Switch Scoreboard Issuer Advisory Group LLC Viacom $28.4 B Sallie Mae $6.2 B Fifth Street Financial $1.0 B Icahn Enterprises $3.3 B Frontier Communications $5.5 B Wendy’s International $2.0 B Texas Instruments $32.0 B Usana $.7B IMAX $1.8 B Miller Energy Resources $.2 B 3D Systems $1 B XO Group $.3 B Success Factors $2.2 B Hudson Valley Holdings $.4 B Regency Energy $3.5 B Level 3 Com $4.8 B Kenexa $.6 B Joy Global $9.5 B TC Pipelines $2.5 B Prosperity Bancshares $1.9 B Provident NY Bank $.2B StoneMor $.5B DRD Gold $.2B Companies moving to Nasdaq from the NYSE: 7 Companies moving to the NYSE from Nasdaq: 16 Total Market Cap to Nasdaq in 2011 = $78 Billion Total Market Cap to NYSE in 2011 = $30 Billion Includes only stocks > $100 million market cap to ensure comparability with prior periods.
4 The Official 2010 Switch Scoreboard Issuer Advisory Group LLC Winner Medical $163 M Sky People Fruit Juice $130 M Shengkai Innovations $175 M China MediaExpress $430 M Potlatch $1.3 B Hasbro $6.8 B Avis Budget Group $1.5 B Kapstone Paper & Packaging $417 M Targa Resour $1.7 B Charles Schwab $22 B Paragon Shipping $237 M Inergy $3.9 B Orion Energy Systems $110 M Knight Capital $1.3 B Monmouth REIT $238 M Houston American Energy $293 M Corporate Executive Board $1.0 B United Airlines $3.8 B GFI Group $565 M Main Street Capital $301 M Compass Diversified $714 M Triangle Capital $288 M Companies moving to Nasdaq from the NYSE: 7 Companies moving to the NYSE from Nasdaq: 15 Total Market Cap to Nasdaq in 2010 = $10 Billion Total Market Cap to NYSE in 2010 = $37 Billion Includes only stocks > $100 million market cap to ensure comparability with prior periods.
Orion Marine $400 M Juniper Networks $14 B GMX Resources $400 M 5 Switch Momentum 2009 Issuer Advisory Group LLC Ener $800 M Dreamworks $1.4 B RR Donnelly $2.9 B GHL Acquisition $500 M Mattel $6.5 B Vodafone * $13.2 B BMC Software $7.0 B Cypress Semi $1.3 B Windstream $4.6 B Micron Technology $7.5 B Companies moving to Nasdaq from the NYSE: 10 Companies moving to the NYSE from Nasdaq 3: Total Market Cap to Nasdaq in 2009 = $46 Billion Total Market Cap to NYSE in 2009 = $15 Billion * Global Market Cap = $112 B Includes only stocks > $100 million market cap to ensure comparability with prior periods. (Restated)
6 Switch Momentum 2008 Issuer Advisory Group LLC Computer Associates (CA) $12B CME Group (CME) $20B Celera (CEL) $1B Automated Data Processing (ADP) $18B Seagate Technology (STX) $6B Jack in the Box (JBX) $1.2B Mylan Laboratories (MYL) $3B News Corp (NWS) $22B Hill International (HIL) $500 M Northwestern Corp (NWE) $950 M Alexander & Baldwin (AB) $1.8B Warnaco (WRC) $2.2B Seabright Insurance (SBX) $200M Monster Worldwide (MWW) $1.4B Companies moving from the NYSE to Nasdaq: 8 Companies moving to the NYSE from Nasdaq: 6 Total Market Cap to Nasdaq in 2008 = $80 Billion Total Market Cap to NYSE in 2008 = $7 Billion (As published 12/08)