The current prices that are being paid for NYSE seats are much higher
than they have been relative to the S&P500.
If the historical
relationship remains relatively stable, than one of two outcomes is
implied: either the S&P500 is very undervalued relative to the
seats – or the seats are being overpaid for.
NYSE Seat Exchange Prices vs SPX
Source: Michael Panzner
Will the historical pattern hold up, or does the recent merger alter the relationship? It is possible that the NYSE/Archipelago deal is skewing the value of NYSE seats.
Obscure Economic Indicators:
Quote of the Day
“Never write when you can talk. Never talk when you can nod. And never put anything in an e-mail.” ~Eliot Spitzer