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Thorne
11-08-2006, 09:39 AM
http://biz.yahoo.com/ap/061108/nyse_group_cuts.html?.v=3

Headline courtesy of fark.com :)

NYSE Group Cutting More Than 500 Jobs
Wednesday November 8, 11:45 am ET
By Joe Bel Bruno, AP Business Writer
NYSE Group Cutting More Than 500 Jobs to Cut Costs, Improve Efficiencies

NEW YORK (AP) -- NYSE Group Inc., the operator of the New York Stock Exchange, on Wednesday said it will cut more than 500 jobs as part of a strategy to trim $200 million in expenses within the next two years.

The world's largest stock exchange said the reductions will help eliminate duplicate services from last year's acquisition of electronic exchange Archipelago. Layoffs also come as the NYSE attempts to transform itself into an electronic marketplace, scaling back the need for floor specialists to execute trades.

A spokesman for the exchange would not comment on the layoffs, which will effect 400 employees and 120 full-time consultants.

Since March 2005, when the NYSE and its business units had 3,484 employees, there has been a reduction of 35 percent of its work force or more than 950 employees. The current round of cuts represent about 18 percent of the exchange's employees.

The job cuts are part of the exchange's plan to produce cost savings after its acquisition of Archipelago opened the way for it to become a public company in March. Chief Financial Officer Nelson Chai recently said the company has already achieved about $100 million of cost savings, and is on track to double that amount in 2007.

Richard Repetto, an analyst with Sandler O'Neill & Partners, applauded the layoffs as a good way to cut costs without hurting revenue. He said the NYSE hasn't guided Wall Street on how many more job cuts might be in store.

"This is all part of the cost reductions going on there," he said. "The NYSE has been run as a nonprofit for such a long time, and they are finally taking a hard look at efficiencies as a public company."

Layoffs follow last month's announcement the NYSE would spend about $40 million to buy the Securities Industry Automation Corp. from the American Stock Exchange. The SIAC runs the computer systems and communications networks that power the two exchanges and dispatch its data.

The NYSE said buying the one-third stake in SIAC it didn't already own would enable the exchange to have greater control over costs and improve efficiency. About 150 SIAC employees affected by the job cuts will become part of the Amex.

The 151-year-old exchange has been attempting to modernize its trading operations to better compete against rivals, including the Nasdaq Stock Market. The introduction of its new hybrid system -- named because it allows more automated transactions and reduces the need for humans on the exchange's famed trading floor -- is expected to be fully running by the end of the year.

Last week, the NYSE said orders rose for the 109 stocks trading under the hybrid system through Oct. 30. The exchange's management told analysts after reporting quarterly profit that the transition to automated trading has so far been seamless.

The NYSE announced in October plans to close one of five trading rooms it operates on Wall Street within the next 18 months. The trading floor currently houses Bear Wagner Specialists, a unit of Bear Stearns Cos., and 33 other floor-brokerage firms.

Modernizing the Big Board also was seen as a step to help it more easily integrate with Paris-based Euronext NV. The $10 billion deal to combine the two exchanges will go before shareholders in December.

The trans-Atlantic exchange would boast the ability for investors to trade stocks, options, futures, commodities and corporate bonds on two continents up to 12 hours a day. A bulk of the projected $21 trillion in monthly stock trades is seen one day being executed mostly through electronic trading.

NYSE shares fell 55 cents to $81.48 in late morning trading.

stevapalooza
11-08-2006, 09:57 AM
Thanks a lot liberals!

Natty P, Scientific Adventurer
11-08-2006, 10:29 AM
The Dow is up today, and it's stronger than it's ever been. From what I've been reading, Wall Street likes gridlock (A republican white house and a democratic legislature) even better than just republicans.