Commentary: Nasdaq Amex: Market Of The Future? Not Likely

At first blush, the proposed merger of the NASDAQ Stock Market and the American Stock Exchange seems like welcome news for investors. By creating a more formidable rival to the New York Stock Exchange, the linkage of the NASDAQ and the Amex could lead to more efficient markets. Combining the auction system of Amex and NASDAQ's dealer system could yield a hybrid electronic-auction market that would present new choices and potential cost savings for issuers, traders, and investors. "It's the catalyst that will lead to a complete reengineering of our markets," says Junius W. Peake, a professor at the University of Northern Colorado and a former National Association of Securities Dealers director.

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