To do global battle, the New York Stock Exchange needs the kind of efficiencies that come from deals like the one with Archipelago. To that end, it continues to pare. The latest news is that it will slash 400 employees and 120 full-time consultants. Since March 2005, the NYSE has reduced its employee rolls 35 percent--about 950 employees. Since the public offering in March, the company has already effected moves that will save about $100 million. That number is only going north. So it looks like John Thain really has a handle on the cost side of the equation. The business side looks good, though a lot is riding on the new hybrid system. The strategic side, however, is replete with wildcards.

For more on this:
- Here's an AP article