A Goldman Sachs analyst has said new stock exchange regulations in the US are likely to benefit all-electronic Nasdaq and erode market share at the hybrid New York Stock Exchange.
In upgrading Nasdaq to 'buy' from 'neutral' and downgrading Nyse to a 'sell' rating, Goldman analyst Josh Carter said the introducion of new best execution rules in July under the Reg NMS tag would favour the Nasdaq's superior trading platform.
Carter cut his 2007-2009 earnings estimates for Nyse by about eight percent and raised his annual 2007-2009 earnings estimate for Nasdaq by six percent.
The comments - issued Monday - had an immediate effect on the respective share prices of the two exchanges with Nyse Euronext slipping by $5.03, or 5.5%, to $87.30, and Nasdaq edging up by $1, or 3.2%, to $33.16.