.jpg)
NYSE Group, Inc. (NYSE: NYX) today announced that it has acquired an equity stake in Marco Polo Network Inc., (MPN) a leading electronic platform for global investors to trade equities and derivatives listed on emerging market exchanges.
Marco Polo Network Inc., through its local exchange and brokerage relationships, offers intra-market connectivity and routing to brokers and exchanges in more than 40 emerging markets. Together, these markets provide investors with access to more than 90% of the MSCI emerging markets index.
“Marco Polo Network offers us an excellent opportunity to enhance linkages to a very dynamic and growing segment of the global capital markets,” said NYSE Group President and Co-COO Catherine R. Kinney. “Combining the NYSE’s global footprint with Marco Polo Network’s global brokerage connectivity through local intermediaries will facilitate enhanced cross-border capital flows. This is a unique opportunity for the NYSE Group and Marco Polo Network to gain complementary business at the onset of further globalization of the capital markets.”
Vinode Ramgopal, MPN’s CEO said: “The emerging markets are the fastest growing component of the global capital markets. In aggregate, they are the second-largest equity markets in the world as measured by capitalization and turnover. Investor demand for rapid and transparent access to these markets is already substantial; it is set to accelerate and diversify as local equity derivatives and fixed income markets join the fray. MPN’s partnership with the NYSE is an exciting initiative to expand global investor access to these markets.”
The agreement provides NYSE Group, Inc. with an ownership stake in, and one seat on, Marco Polo Network’s Board of Directors. Terms of the transaction were not disclosed.
Background on NYSE-emerging markets:
- The NYSE lists 452 companies from a total of 47 non-U.S. countries with a combined total global market capitalization of $8.8 trillion (as of Aug. 31, 2006 ), more than any other exchange. The total market capitalization of NYSE-listed companies from emerging markets is $1.7 trillion (as of Aug. 31, 2006 ).
- Future growth in global capital markets is expected to come largely from fast-growing emerging market economies, such as the “BRICs” economies (Brazil , Russia , India , China ). NYSE Group, Inc. lists 64 companies with a total global market capitalization of $898 billion from BRICs countries, more than any other exchange.
- As per the most recently available data (first-quarter 2006), U.S. investors held $3.3 trillion in non-U.S. stocks. (Source: U.S. Federal Reserve), representing 19.8% of total U.S. equity holdings.
About Marco Polo Network, Inc.
Marco Polo Network, Inc., a Delaware corporation, is a majority-owned subsidiary of Bermuda-incorporated Marco Polo Group. Marco Polo Network, Inc. is the most geographically extensive platform for global investors to trade securities listed on global electronic connectivity exchanges. Marco Polo Group, through its subsidiaries, pursues a range of financial services opportunities focused on the global emerging markets. Marco Polo Network is affiliated with Marco Polo Securities, a NASD-registered broker dealer.
About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities. On August 31, 2006 , our listed operating companies represent a total global market capitalization of over $23 trillion. In the first eight months of 2006, on an average trading day, almost 1.8 billion shares, valued at over $68.5 billion, were traded on the NYSE.
NYSE Arca operates the first open, all-electronic stock exchange in the United States and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca is also an exchange for trading equity options. NYSE Arca’s trading platform provides customers with fast electronic execution and open, direct and anonymous market access.
NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.
For more information on NYSE Group, go to: www.nyse.com.
