ICE Chief to Surrender NYSE Market Shares to End Rebates

June 8
1:32 AM 2013

The InterContinental Exchange Inc. (ICE) may surrender some of its shares in the New York Stock Exchange (NYSE). This is to end huge trading incentives once InterContinental Exchange Inc. pushes through acquisition of Euronext at US$8.2 billion as stated by ICE's chief executive.

The critical practice by the US Stock Exchange in giving big rebates on trading fees was labeled ridiculous by Jeff Sprecher, ICE executive.

Sprecher also admitted that if NYSE did not compete for stock orders through rebates, which at some exchanges surpass trading fees, it would likely lose a big number of its market shares. He also added that higher value per share for the NYSE can be achieved the moment the exchanges solely focus on trades that generate money.

According to Sprecher, ICE charges premium prices for its finest services that led to a higher price per share for the InterContinental Exchange Inc. He also added that ICE does not compete simply on the price. The company competes with the technology and innovations and it has worked pretty well for ICE.

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