UPDATE 1-Merrill trims Nasdaq trading focus
(Reuters 10/08 09:48:52)
(Recasts, adds company comment, details)
NEW YORK, Oct 8 (Reuters) - Merrill Lynch & Co. Inc.
<MER.N> on Tuesday said it would cut the number of Nasdaq
stocks it trades to focus on the most widely held stocks and
move all trading operations to its New York headquarters.
The broker said in a statement it would stop trading
Over-The-Counter Bulletin Board and Pink Sheets stocks and some
smaller Nasdaq issues, reducing the number of Nasdaq stocks it
trades to 2,400 from 10,000. A company spokeswoman said that
given current market conditions, the company felt it was more
profitable to focus on those 2,400 stocks.
Merrill said the remaining stocks it will trade account for
92 percent of all Nasdaq trading volume and that it will still
trade Nasdaq component stocks of all major indexes, including
the Russell 3000. OTC and Pink Sheets stocks typically trade
for pennies on low volume.
The broker also said it would move all of its trading
operations, some of which are located in Jersey City, New
Jersey, to its New York headquarters. The spokeswoman would not
comment on whether this would result in job cuts.
"We're continuing to manage our resources which includes
expenses and headcount in line with the business environment,"
she said.
Brokerages and large banks have been forced to cut costs in
the slack U.S. economy as markets have sunk to multiyear lows.
Merrill and J.P. Morgan Chase & Co Inc. <JPM.N> have
already made dramatic layoffs and banking sources have told
Reuters the banks were planning to eliminate several thousand
more jobs. Credit Suisse Group <CSGZn.VX> is also planning
significant cuts, according to published reports.
((Philip Klein, New York Equities Desk, (646)-223-6023))
REUTERS |
