June 30 (Bloomberg) -- CME Group Inc. plans to withdraw its shares from the New York Stock Exchange and list only on Nasdaq OMX Group Inc. while extending an index-futures trading agreement as exchanges expand in the derivatives market.

CME plans to drop its shares from the NYSE on July 11, the company said in a statement. Nasdaq OMX will give Chicago-based CME the right to offer futures and options on contracts based on Nasdaq indexes through 2019, the companies said in a statement.

CME, the world's biggest futures market, is getting seven additional years of exclusivity for the trading on Nasdaq indexes as NYSE is expanding its London-based Liffe derivatives market and challenging Deutsche Boerse AG and CME.

``NYSE is more of a competitor of the CME than Nasdaq is,'' said Bruce Weber, professor at the London Business School who has researched exchanges since 1990. ``It's clear that listing is now a business decision in a broader sense.''

CME began trading on the NYSE, run by New York-based NYSE Euronext, in December 2002, and listed on Nasdaq in May 2005.

CME's departure is a setback for NYSE, which is losing market share for its own listed stocks. In May, the share tumbled to a record low 32.6 percent from 52.6 percent a year earlier, according to Lehman Brothers Holdings Inc. Nasdaq matched 21.6 percent of NYSE-listed stocks, up from 14.5 percent a year earlier.

Nasdaq, CME

Nasdaq matched 24 percent of CME stocks traded this month, double the 12 percent Nasdaq matched in June last year, the exchange said. An additional 15 percent this month was reported using Nasdaq's trade-reporting facility.

``CME have evaluated where the trading in the stock takes place and the corporate services we offer,'' Magnus Bocker, president of Nasdaq OMX, said in an interview today. ``We expect more companies to follow in the months ahead. We aim to continue to develop our services. We have never had as many opportunities as we have now.''

Still, Nasdaq's market share of U.S. stock trading peaked in January at 31.6 percent and declined to 29.2 percent in May, according to data on its Web site. The slide contributed to the decline in Nasdaq's stock this year, Piper Jaffray Cos. analyst Josh Elving said in a report last week.

NYSE Chief Executive Officer Duncan Niederauer plans to use the purchase of CME's gold and silver derivatives trading, announced in March, to begin developing new contracts. NYSE Euronext owns Liffe, Europe's second-largest derivatives exchange and plans to expand its futures-trading business in the U.S.

`Commercial Relationship'

``The commercial relationship between CME Group and Nasdaq appears to have influenced the listing decision,'' said Richard Adamonis, a spokesman for NYSE.

Companies including Charles Schwab Corp., the biggest discount brokerage, have transferred to Nasdaq from the NYSE, as did E*Trade Financial Corp.

NYSE said 10 companies transferred to its exchange from Nasdaq last year. So far this year, three companies have transferred to the NYSE from Nasdaq, the company said.

``This is a listing that the NYSE is going to be pained to lose, it's a blow,'' said Weber. ``Still if you look at the CME's stock performance, they've done very well on the NYSE. CME shareholders shouldn't have any gripe about the fact they were listed on the NYSE. Shareholders will now have to decide whether dropping the NYSE listing was the best thing to do.''

Nasdaq fell $1.73, or 6.1 percent, to $26.55 at 4:30 p.m. in New York trading. NYSE shares fell $1.45, or 2.8 percent, to $50.66. CME shares fell $6.31, or 1.6 percent, to $383.19.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

Last Updated: June 30, 2008 16:58 EDT