archipelago

John Thain was the man everyone wanted

Thu, 15 Nov 2007 06:59:57 -0500

John Thain was a man in heavy demand. While the jury is out on whether the NYSE will emerge as the unquestioned world exchange leader, he was seen as decisive and shrewd, especially for his deals with Euronext and Archipelago. So when Merrill Lynch and Citigroup needed new CEOs, his name kept cropping up. As the next CEO of Merrill Lynch, it will be interesting to see how his Goldman Sachs pedigree affects his turnaround efforts. Let's face it, Stanley O'Neal embraced a Goldman Sachs-like model. Unfortunately, it blew up in his face. Some think that Thain represents the Goldman tradition and will make Merrill even more of a balance sheet-savvy risk-driven company. Maybe. I doubt he'll jettison the brokerage division. It will be interesting to see his first moves.

For more:
- here's an article from TheStreet.com

Related articles:
- Will John Thain become CEO of Citigroup?
- Forcing the succession issue at Morgan Stanley
- Whatever happened to succession planning?

NYSE's Putnam's role to change

Tue, 04 Sep 2007 06:59:54 -0400

Jerry Putnam will be remembered as the man who really helped bring a new trading model to the New York Stock Exchange. The acquisition of his Archipelago service in 2005 by the Big Board may end up ranking as one those pivotal moves in the history of the exchange. He was always seen as more of a visionary, and it is not surprising that his role at the NYSE is now morphing. According to Financial News Online, he will be giving up all managerial responsibility and moving into an advisory role--from Chicago. He says he's accomplished what he set out to do. So this seems like he is being put to pasture, just as the war for order really heats up.

For more:
- here's the article from Financial News Online

'Vinnie' comments enrage NYSE floor

Sun, 11 Mar 2007 20:01:35 -0400

Floor denizens at the New York Stock Exchange are used to being called dinosaurs, anachronisms and colorful characters and the like. Certainly, enough 'end of an era' stories about them have been written. But do not refer to them as 'Vinnie.' Goldman Sachs partner Duncan Niederauer, who will become the president and CEO of the Big Board, has been in damage control mode due to his remark several years ago that he didn't want his stock handled by "five guys named Vinnie." He will likely apologize but the floor is getting worked up. Some think John Thain should withdraw his offer. This has happened before--recall that Jerry Putnam, formerly of Archipelago and now a top exec, once hired someone to write a song called "Joey the Specialist."

For more:
- here's the article from the New York Post

NYSE shuffles top management

Tue, 27 Feb 2007 19:01:37 -0500

The NYSE Group has hired another big name Goldman Sachs executive. Duncan Niederauer will join the company as president and co-chief operating officer. He'll be in charge of cash equities operations, at the institutional and member firm level. The NYSE also announced that Gerald Putnam will become vice chairman. The former chief executive of Archipelago currently serves as president and co-chief operating officer. He will fittingly oversee technology, product development and options. Also, Catherine Kinney will be tasked with growing the group's global listings business, an area of high concern. All will serve on the NYSE Euronext management committee. So it looks like CEO John Thain has his team in place. The exchange will win or lose with these guys in charge. The pressure is on.

For more:
- here's an FT article

Suit against NYSE continues

Wed, 17 Jan 2007 19:01:34 -0500

A group of ex-NYSE seatholders has sued the New York Stock Exchange, charging that they were misled by CEO John Thain about the Big Board's plans to go public. As support, the plaintiffs are pointing to a meeting in 2005, during which Thain was asked if the NYSE had plans to go public. Thain apparently said no. At least one seatholder sold his seat the next month. Had he held on, he would have made more money. Various traders have supported this version of events. However, the Big Board has argued that while talks with Archipelago were underway, the results were far from certain. Recall the deal with Archipelago was the vehicle for the NYSE's listing.

For more:
- here's a New York Post article

NYSE to pare 500 additional jobs

Wed, 08 Nov 2006 19:01:34 -0500

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

IT looms large in NYSE's deal strategy

Sun, 02 Jul 2006 20:01:37 -0400

If the Archipelago and Euronext deals works as planned, the NYSE is set to become a global, 24/7 provider of services. It all depends on integrating the acquisitions, which could be difficult. Thus, the NYSE faces the same tricky IT integration tasks that many large banks have faced. Wall Street & Technology magazine notes that the Big Board has precious little experience in this area, so the pressure is really high.

> Read the article.

Can the NYSE please the buyside and the floor?

Tue, 30 May 2006 20:01:38 -0400

Will the Big Board's plans for a hybrid system work? Traders magazine notes it has been two years since the Big Board filed its plans with the SEC. Since then, the exchange has filed seven amendments to the proposal (with another on the way). Along the way, it bought Archipelago. The fact that approval seems far away only highlights the difficulty of what the NYSE is tying to achieve. The larger question is whether any sort of combination system can really win over the buyside.

> Here's the article.

Who will lead the New York Stock Exchange?

Mon, 29 May 2006 20:01:36 -0400

A MarketWatch columnist notes that John Thain has long maintained that he would hold the top job at the New York Stock Exchange for just three-to-five years. He's less than a year away from the three-year mark, and he has previously stood by his timetable. So the NYSE's board would be wise to address succession issues. Given events, you have to think there are two strong candidates: Jerry Putnam, the former CEO of Archipelago, and Jean-Francois Theodore, the CEO of Euronext, assuming a deal goes through.

> Here's the column.

Hedge fund builds up NYSE stake

Mon, 08 May 2006 20:01:37 -0400

Atticus Capital bought up roughly 2.5 million New York Stock Exchange shares last week, which gave the issue a nice boost. A former owner of 12 percent of Archipelago, the fund now has 9.4 million shares, good for a 6 percent stake in the Big Board. That makes it the second-largest owner behind General Atlantic Partners. The fund is backing CEO John Thain, but it also has a history of agitation when it believes it's necessary. It could prove to be a thorn.

> Here's a New York Post article.