![]() They use capital from their balance sheets to support the trading of NYSE-listed stocks this reduces volatility and narrows spreads, according to Chu. Chu says the market intelligence is a function of the NYSE’s direct market makers, who have roots in the traditional auction market. Gelfond says IMAX’s investor relations department is pleased with the level of market intelligence that it receives from the NYSE. Of the 700 theaters the company has open or in development, 177 are in China. The NYSE also invited Gelfond to attend conferences with CEOs from China, a key growth market for IMAX. “They went out of their way to make us feel special,” Gelfond says. The main factor was that the NYSE offered to help promote IMAX - for example, including it in newspaper advertisements and a billboard in Silicon Valley. A lot of our peers listed on the NYSE, and they offered us marketing benefits we were not getting.”įees and listing requirements weren’t the key issue for IMAX, a 43-year-old tech company with more than $248 million of revenue in 2010. “They had a global platform and perhaps more history as a well-known brand. They made a case for why it would make sense for us to go with them,” says IMAX CEO Richard Gelfond. IMAX Corp., known for its giant-screen film formats, switched to the NYSE in February. It has marketed itself to Nasdaq-listed companies and encouraged them to switch to the NYSE. Once the gap in listing requirements and technology between the NYSE and Nasdaq were narrowed, the NYSE played up the importance of a still-potent asset: its 200-year-old brand. It also acquired Arca, an electronic communications network, or trading platform, in 2007. Since 2006 it has made a number of tech-related acquisitions, including Atos Euronet Market Solutions, Securities Industry Automation Corp. Though that shift wasn’t specifically targeted at attracting tech start-ups, it made the NYSE generally more competitive. The NYSE also moved heavily into electronic trading, an area where Nasdaq and other rivals were way ahead of it. “We approach this market with humility, because it wasn’t that long ago that the NYSE was nowhere in tech,” says Douglas Chu, head of the NYSE’s Silicon Valley office, which handles tech IPOs and other business in the western U.S. If the NYSE can capture some or all of those IPOs, it may retain its traditional identity as the Big Board, building its brand and attracting more companies that want to be in the orbit of the new giants. Facebook is expected to go public soon, as are Groupon, Twitter, Zynga Game Network, and others. The NYSE and Nasdaq are squaring off in the tech IPO market at an important time, as a new generation of tech companies comes of age. “NYSE has succeeded in making the tech IPO market a horse race,” says Lise Buyer, founder of IPO adviser Class V Group. The efforts appear to have borne some fruit. Then it brought in tech bankers to help sell the revamped NYSE and its still-potent brand, pitching CEOs of start-ups and rival companies that were listed elsewhere. The NYSE also invested heavily during the past few years in electronic trading, another Nasdaq stronghold. To court them, the NYSE created a set of start-up-friendly alternative listing requirements in 2008, addressing a gap where rival Nasdaq had a huge advantage. They began several years ago with a strategic decision to pursue tech start-ups that had been ignored by NYSE in favor of larger and more established companies. The NYSE’s gains didn’t happen overnight. Nasdaq came in second during the first half of 2011, with a 41 percent share as of July 19. Financial data management company Bankrate, computer memory start-up Fusion-io, digital music company Pandora, and Renren, known as the Facebook of China, also have listed on NYSE in recent months. The NYSE lured companies including LinkedIn and digital publisher Demand Media. The NYSE, which had a 12 percent share of all tech IPOs as recently as 2006, took 58 percent of the market for tech IPOs during the first half of 2011, according to Dealogic. A few months ago the NYSE surpassed Nasdaq in the tech listings market for the first time. ![]() Yet market shifts can occur swiftly in the Information Age. and Hewlett-Packard Co., Nasdaq snared most of the notable tech IPOs of the past few decades, from Microsoft Corp. ![]() Though the NYSE was home to a few older tech giants, such as IBM Corp. ![]() Its platform was like a clunky old cell phone, compared with rival Nasdaq Stock Market’s iPhone. Just a few years ago, the New York Stock Exchange was an also-ran in the market for tech IPOs. ![]()
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