Nasdaq sees more financial services IPOs

NEW YORK Tue May 12, 2009 3:48pm EDT

Magnus Bocker, president of the Nasdaq OMX Group, speaks at the Reuters Exchanges and Trading Summit in New York May 12, 2009. REUTERS/Eric Thayer

Magnus Bocker, president of the Nasdaq OMX Group, speaks at the Reuters Exchanges and Trading Summit in New York May 12, 2009.

Credit: Reuters/Eric Thayer

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Nasdaq looks to attract IPOs

Tue, May 12 2009

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NEW YORK (Reuters) - Some financial services firms are waiting to list on the Nasdaq Stock Market, and the U.S. market operator expects a wave of more in coming quarters as the crippled industry reorganizes, the president of Nasdaq OMX (NDAQ.O) said on Tuesday.

Magnus Bocker said the financial crisis poses an opportunity for Nasdaq to reposition itself as a more attractive place for banks, insurers and others in the sector to list their shares.

"As an effect of the breakup of many large banks, you will see spinoffs; you will see companies and teams starting their own business," Bocker said at the Reuters Exchanges and Trading Summit in New York.

"I think you will see a much more diverse financial services world coming out of the crisis over the last year."

He said "a few" of those are among the 98 firms now in Nasdaq's new listings queue. "In the second or third wave (of new listings) you will actually see some financial services companies."

Financial firms have traditionally listed their shares on the New York Stock Exchange, run by rival NYSE Euronext NYX.N.

But Nasdaq has managed to attract some, including regional banks Fifth Third Bancorp (FITB.O), Huntington Bancshares Inc (HBAN.O) and bank and asset manager North Trust Corp (NTRS.O), along with on-line broker E*Trade Financial Corp (ETFC.O).

"Suddenly the Northern Trusts and other companies have been very successful over the last two years relative to some of the larger banks," Bocker said.

He said some of the larger banks "want to see how they can have different units, different investments, and how they can take those to the market."

Bocker said he expects the first wave of initial public offerings, or IPOs, that emerge when the market improves will be tech-heavy, noting not all of the 98 in line will ultimately list.

(Reporting by Jonathan Spicer; additional reporting by Phil Wahba and Jennifer Kwan; Editing by Brian Moss and Gerald E. McCormick)

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