NYSE, Nasdaq strategies clash

By Jonathan Keehner

NEW YORK (Reuters) - The chief executives of the two leading U.S. stock exchanges laid out dueling visions of their industry's future at the Reuters Exchanges and Trading Summit, underscoring a yawning strategic gulf.

NYSE Euronext (NYX.N: Quote, Profile, Research, Stock Buzz) Chief Executive John Thain and Nasdaq Stock Market (NDAQ.O: Quote, Profile, Research, Stock Buzz) CEO Bob Greifeld, who compete for trading and listings in the world's largest equity market, clashed in separate sessions over issues from the importance of having a global presence to rules for stock symbols.

"We think that the globalization race is a misnomer," Greifeld said, arguing that product, rather than geographical diversification, should be the key goal of any takeover. "I don't necessarily care if it's in Philadelphia, South Africa, Singapore, Norway or anywhere," he said.

He insisted that Nasdaq's failed $5 billion bid for the London Stock Exchange (LSE.L: Quote, Profile, Research, Stock Buzz) was more about expanding in the cash equities arena than a wish to get into Europe.

Thain, having met with success in his first big thrust overseas -- the merger with Paris-based Euronext -- seemed eager for further expansion.

"If you want to be one of the big global players, then you have to be cross-border," he said, adding that while small exchanges can function in just one country "you can't be in the middle."

"The place we need to build out a position is in Asia," Thain said. "That trend to globalize the exchange space really is following what has already happened in the markets."

He said that having achieved a European presence, he expects to strengthen relationships with the Tokyo Stock Exchange and India's National Stock Exchange, and eventually enter China.  Continued...