NEW YORK (Reuters) - NYSE Group Inc. (NYX.N: Quote, Profile, Research, Stock Buzz) Chief Executive John Thain says the biggest threat to the Big Board's market share of trading in NYSE-listed stocks comes not from archrival Nasdaq (NDAQ.O: Quote, Profile, Research, Stock Buzz), but from broker-dealers matching customer buy and sell orders in-house.
Thain, speaking at the Reuters Exchanges and Trading Summit in New York on Tuesday, also predicted the New York Stock Exchange can maintain or even grow its listed-trading market share over time by providing the best price.
"I think the much bigger risk to our market share, the thing I worry about much more than Nasdaq, are the internalizers," Thain said at the Summit. "That piece has been growing."
Thain noted that the Nasdaq stock market handles about 8 percent of trading in NYSE-listed shares, while Archipelago, an electronic stock trading firm acquired by NYSE earlier this year, handled about 5 percent. The NYSE handles all the rest that trade on public markets, he said.
But roughly 15 percent of all NYSE-listed share transactions, Thain said, are traded internally within broker dealers and that market share has been growing.
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