Doug Chu is Senior Vice President and Head of the Silicon Valley Office and Western Region for NYSE Euronext’s...
A Brief History of the NYSE and the Technology Sector
Traditionally the NYSE has not been the exchange of choice for technology companies, largely because for many years there was no choice. Because of high listing standards many technology companies simply didn't qualify. However in 2006, the NYSE merged with Archipelago, an electronic exchange, and formed NYSE Arca with a new set of flexible listing standards. This new exchange allowed tech companies such as 3PAR, Compellent, and Netezza to join the NYSE network. Then in 2008 we changed our listing standards for NYSE classic to makes our markets highly accessible to growth companies of all sizes. This standard has no minimum revenue or income requirements as long as companies have (pro forma for the IPO) $150 million in market capitalization, $75 million in assets, and $50 million in shareholder’s equity. As a result of these changes, since 2007, our share of technology IPOs has increased to 44% in 2010. You may be surprised to see some of the technology companies that have chosen the NYSE.
In addition to listing more and more technology companies, we are becoming the world’s first 200 year old technology company. The fastest growing portion of our business is NYSE Technologies which sells the world’s leading trading technology and solutions across the globe. Our stated goal is to become a $1B technology business by 2015. As part of this we have recently added two new, state of the art data centers which incorporate state-of-the art technology.
Given our unique position of having to process an enormous amount of orders in a given trading day and the need for absolute reliability and security we partner with very best technology providers, many of which are headquartered in Silicon Valley.
As part of our overall commitment to growth-stage and venture-backed companies, we have expanded our presence in Silicon Valley. We routinely sponsor and participate in VC and entrepreneurship events, IPO bootcamps, and have already hosted three technology summits of our own. We seek to be the most supportive exchange in helping VCs, their portfolio companies, and institutional investors play a vital role in reviving the global economy through IPOs.