NYSE Statement Re: Dual Listings (Responding to Today's WSJ Report)

We can't comment on rumor and speculation, and we are not familiar with Nasdaq's plans. As background, however, remember that Nasdaq has for years told the press that it was in discussions with "a number" of NYSE-listed companies that were ready to transfer from the Exchange. (As a reminder, Rule 500-often cited by Nasdaq as the reason companies couldn't leave-was significantly relaxed in 2000 and completely abolished in 2003.) Since 1990, 680 companies have transferred from Nasdaq to the NYSE; one has left the Exchange to go to Nasdaq. Since 2000, the score is 119 - 1 in favor of the NYSE.

Studies have consistently shown that companies that transfer to the NYSE from Nasdaq experience higher quality markets. An NYSE study released this past November that examined 39 companies that transferred to the Exchange from Nasdaq found that trading costs and volatility are significantly lower at the NYSE than at Nasdaq. (Find the NYSE Market Structure Study at http://www.nyse.com/marketstructure2003))

Nasdaq and other competitors already have the right to trade NYSE-listed stocks-competitors trade approximately 20% of NYSE average daily volume. The Exchange continues to produce the best prices in our listed equities. What drives orders to the Exchange are the superior prices created by the Exchange (best quoted price 93% of the time) and outstanding liquidity and market quality, among other things. We welcome competition that serves the interests of the investing public, but oppose initiatives that harm and disadvantage investors, such as payment for order flow, order rebates, preferencing and internalization.

We're also proud that the best companies choose list on the NYSE, which has the most stringent listing requirements of any market. No market does more or provides greater value for its listed companies and their shareholders than the NYSE, and we will continue to do so.