You can bet there's a lot of hand-wringing going on at the Nasdaq. Watching the NYSE ink its deal with Euronext and its partnership with the Tokyo Stock Exchange was a bitter reminder of its failure to land a deal for the London Stock Exchange. People are now wondering what it will do next. There has been talk that the Nasdaq may align somehow with an LSE rival known as Project Turquoise, which is developing a trading platform. And there may be other opportunities for European linkages. But for the most part, it looks like the NYSE has trumped it internationally. Domestically, however, the NYSE has some problems that, very quietly, the Nasdaq could exploit. The problem of local market share is one that has not gotten a lot of attention. It's fair to say the NYSE hybrid-system has not generated the kind of volume gains some expected. We'll see how the Nasdaq responds. For now, it had better get its international expansion story together.

For more:
- here's an AP article