We wince when we think about Jim Cramer and his “Mad Money” success but his WSJ OpEd yesterday regarding Euronext and the NYSE was spot on.
Jim points out what we already know: The regulatory burdens and lousy industry fundamentals for the US Equity business hurt more than just Wall Street paychecks.
He goes on to point out the more effective structure of the overseas markets and the fact that all the profits in US exchanges have migrated to areas where there is some pricing power and a better structure, namely derivatives.
We see no quick fix for the situation in the US which has definitely piqued our interest in focusing more of our research efforts abroad.
WSJ now charges for their content online but you can find his OpEd in the May 26th edition.