The NYSE-Archipelago merger : a case study in the evolution of exchange structures

At the time of this writing, the NYSE had just completed its historic merger with Archipelago, LLC, while changing its ownership structure to a public company. The conditions leading up to this transformation are descriptive of the overall changes in "exchange structures" and the infrastructure of equity trading in the United States and around the world. The document is written to be useful to an audience of both industry and non-industry executives. To accomplish this, we examine the historical underpinnings of exchanges, how they developed, identifying conditions that transcend structures themselves. We go on to describe the mechanics, governance, technology, and regulatory environment of exchanges today. From this we can examine the forces inducing and enabling changes in the market structures. The "investment supply chain" is introduced as a framework to understand the flow of capital in the economy and the changing position of the exchanges and industry players. We consider the anatomy of trading, evolving technologies and the experience of non-US exchanges in the process of demutualization, technology infrastructure change and business model evolution. The thesis also draws on inferences from similar economic shifts in other industries.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Walker, James F. (James Francis)

Advisor dc:contributor.advisor

• Andrew W. Lo.

• Sloan School of Management.
• Sloan Fellows Program on Innovation and Global Leadership.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/44614

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/44614