New Listings
In the first quarter, 22 domestic companies listed on the NYSE, including six Nasdaq-transfers. Newly listed companies included 14 domestic IPOs that raised $7.2 billion, continuing the NYSE's longstanding leadership of the market for IPOs and new listings. In all, NYSE-listed IPOs accounted for 93.9 percent of all qualified domestic IPO proceeds.
The NYSE also listed eight non-U.S. companies with a total global market capitalization of $180.8 billion in the first quarter. Non-U.S. companies that listed on the Exchange included Bayer AG from Germany, Wimm-Bill-Dann Foods OJSC from Russia and NTT DoCoMo from Japan. Three IPOs from non-U.S. companies raised a total of $2.6 billion, including the $2.3 billion IPO from Alcon. In addition, NYSE-listed Companhia Vale do Rio Doce (CVRD), raised $1.8 billion in a secondary offering. In the first quarter, NYSE-listed IPOs from non-U.S. companies accounted for 100 percent of qualified non-U.S. offerings.
Average daily trading volume at the NYSE was 1.38 billion shares, and the daily value of trading was $43.2 billion in the first quarter. Non-U.S. volume of 122.2 million shares accounted for 8.8% of daily trading volume during the quarter, representing an average daily value of trading of $3 billion.
The NYSE was the only major U.S. equities market on which trading volume increased in first-quarter 2002. Average daily volume at the NYSE in the quarter rose to 1.38 billion shares, compared with 1.25 billion shares in the first quarter of 2001, an increase of 10 percent.
Technology and New Products
On Jan. 23, the Exchange launched NYSE OpenBook, a new market-information product that further enhances the transparency of the NYSE market and broadens customer access to depth-of-market data.With NYSE Open Book, market professionals and off-floor market participants can view the disclosed buy and sell interest in all NYSE-traded securities beyond the best bid and offer.
Since December 2001, the use of NYSE e-Broker handheld devices has increased dramatically. By the end of the quarter, the average number of daily messages had increased to more than 76,000 messages a day, up 51% on last December's average. At the end of the quarter, the number of shares routed through NYSE e-Broker was 270 million shares a day, up 48% on December 2001.
Regulation
On Feb. 7, the NYSE board of directors approved sweeping changes in the way member organizations, their research analysts and investment-banking departments manage and disclose conflicts of interest. The proposed changes, developed in collaboration with NASD Regulation and the securities industry at the initiative of the Securities and Exchange Commission (SEC), have been proposed to the SEC for approval.
The Exchange's board of directors also approved allowing NYSE floor brokers to have direct voice communications from the Exchange trading floor to trading desks and customers off the floor, under NYSE rule 36, which governs communications on the NYSE. This rule previously prohibited the use of cellular-phone communications between the trading floor and any off-floor location. The amendment has been proposed to the Securities and Exchange Commission for review.
Other New Products and Developments
On Jan. 28, the NYSE signed an agreement with Dow Jones Indexes, a unit of Dow Jones & Co., to develop and maintain a family of NYSE Indexes. NYSE Indexes will track the performance of NYSE-listed companies in key market sectors and regions and will be the basis for tradable products, including ETFs, to be launched in the future.
On March 13, the NYSE announced the allocation of trading privileges to three specialist firms to trade the 17 Merrill Lynch HOLDRS SM the MidCap SPDR Trust Series I, and nine Select Sector SPDR Funds. All 27 products will begin trading on the basis of unlisted trading privileges (UTP) this month.
Corporate Accountability and Listing Standards
On Feb. 13, the Exchange appointed a Corporate Accountability and Listing Standards Committee of its Board of Directors to review listing requirements and matters involving corporate governance. The committee is working in tandem with legislative and regulatory bodies as well as other marketplaces to provide guidance on measures to restore confidence in the markets. It had its first meeting in March and will issue a report on its findings as early as June 2002.
Other announcements
On Jan. 2, following the retirement of former NYSE president and COO William R. Johnston, Catherine R. Kinney and Robert G. Britz, were appointed co-chief operating officer, president and executive vice chairman of the NYSE, as well as members of the Board of Directors.
On March 22, the nominating committee of the NYSE named five new candidates for election and eight current directors for re-election to the Exchange's board of directors. The new candidates for public representatives are Carol Bartz, chairman and CEO of Autodesk, Inc.; Laurence D. Fink, chairman and CEO of BlackRock, Inc.; and Martha Stewart, chairman and CEO of Martha Stewart Living Omnimedia, Inc.
The new candidates for securities industry representatives are James E. Cayne, chairman and CEO of The Bear Stearns Companies Inc.; and John J. Mack, CEO, Credit Suisse First Boston.
In the second quarter of 2002, the Exchange will be closed on Memorial Day, May 27.