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Introduction: Advantages of a NYSE listing
One of the most important decisions
in the IPO process is choosing the right
market for listing of the company’s
securities. The NYSE market model is
designed to maximize liquidity, encourage
market activity and help participants trade
more efficiently.
NYSE and NYSE MKT offer a
combination of cutting-edge, ultrafast
technology enhanced by the commitment
of capital from traders who are accountable
to you, the issuer. This market structure
establishes reliable price discovery at
the open, the close and during periods
of volatility, such as times of market
dislocation. Designated Market Makers
(DMMs) add significant liquidity to the
market, which is further enhanced by
supplemental liquidity providers (SLPs)
and floor brokers equipped with new,
algorithmic trading tools. Their judgment
and commitment of capital at the point of
sale differentiates the NYSE from every
other market globally.
DMMs
DMMs are at the center of the NYSE
and NYSE MKT markets. DMMs act as a
buffer against market volatility, increase
liquidity and fulfill an obligation to
maintain a fair and orderly market. The
NYSE features both a physical auction
convened by DMMs and a completely
automated auction that includes
algorithmic quotes from DMMs and other
market makers.
Today, DMMs are among the most
active trading firms on the NYSE. They
follow strict requirements to maintain an
orderly market, quote at the National Best
Bid and Offer (NBBO) and facilitate price
discovery during openings, closings and
imbalances.
Complementing the liquidity of other
quote providers are SLPs: electronic, highvolume
NYSE market members that are
incentivized to add liquidity. Several SLPs
may be providing liquidity to your stock.
SLPs are trading firms deploying their own
capital using proprietary trading models.
Also providing liquidity on NYSE
and NYSE MKT markets are trading
floor brokers. These brokers leverage
their physical point-of-sale presence
with information technologies and
algorithmic tools to offer customers
the benefits of flexibility, judgment,
automation and anonymity with minimal
market impact.
Global reach and visibility
Beyond market structure and market
quality, a market’s size and scope should
also be considered when choosing a listings
venue. The NYSE is a leading global
operator of financial markets and provider
of innovative trading technologies.
Its exchanges trade equities, futures,
options, fixed-income and exchangetraded
products. The exchange offers
comprehensive commercial technology,
connectivity and market data products and
services through NYSE Technologies.
As an innovative applied technology
company in the financial space, the NYSE
has built a universal trading platform that
is being deployed to support not only
its global exchange operations but also
its customers around the world that are
engaged in trading activities and operating
exchanges. Twin data centers in the greater
New York and London metropolitan areas
offer one-stop access to liquidity with the
highest levels of resilience and the lowest
available latency (the time gap between
trade placement and execution) to market
participants.
Many listed companies return to the
NYSE multiple times a year to use its
facilities, including the NYSE trading floor,
for analyst, investor or board meetings,
as well as corporate announcements
and events. The daily openings and
closings also represent an opportunity
for companies to elevate their own brand
visibility. The NYSE offers a host of other
visibility programs for its listed companies,
including global investor conferences,
virtual investor forums and multimedia
channels.
IR services
Another important factor to consider
when choosing a listing venue is
customer service and the quality
of products the marketplace offers.
Successful companies require significant
resources to build shareholder value.
NYSE Market Access Center SM is a fullservice
solution including global visibility
and investor relations services, which
enables management to remain focused
on its business objectives as a public
company.
Governance services
Companies seeking to create a leadership
advantage through corporate governance,
risk, ethics and compliance practices can tap
the integrated resources of NYSE Governance
Services. NYSE Governance Services
leverages the expertise of Corpedia®, a
leader in risk assessment and e-learning for
ethics and compliance, and Corporate Board
Member®, a trusted source on governance
matters for company directors and C-level
executives—both NYSE companies. It
educates and works with companies to
implement measurable practices that help
them uphold the standards expected of them
by their shareholders, customers, the public
and the law.
Issuer advocate
The NYSE acts as an advocate for listed
companies, championing policies that are
consistent with the values of fair, efficient
and transparent markets—from short-sale
trading issues to corporate governance
reform; from the cost of complying with the
Sarbanes-Oxley Act of 2002 (SOX) to the
difficulties of adhering to the United States’
intricate and idiosyncratic accounting rules.
For example, the NYSE has sent
numerous recommendations to regulators
and lawmakers articulating companies’
views on existing or proposed rules and
regulations, particularly those designed
to make markets more fair, transparent
and efficient. The exchange has advocated
for improved transparency around share
ownership, for the streamlining of and
more transparency around proxy fees, as
well as for the passage of the Jumpstart
Our Business Startups Act (the JOBS
Act). The NYSE believes exchanges have
a responsibility to help small companies
grow by providing entrepreneurs with a
source of capital. Looking beyond the IPO
to seek new avenues for small businesses
to access capital, the exchange launched
the NYSE Big StartUp. This jobs-growth
initiative connects big companies with
startups and entrepreneurs, offers training,
mentoring and education programs, as well
as established a fund to ensure that capital
is available to those least able to access it.
The NYSE will continue to have its
pulse on the issues affecting its listedcompany
community and provide support
in making sure their voices are heard
among policymakers.
8 NYSE IPO Guide