Is It Real, Or Is It Nasdaq? New TV Studio Aims To Compete With New York Stock Exchange

When the stock market was rocking last week, television networks showed trading on the floor of the New York Stock Exchange, but there wasn’t a glimpse of the Nasdaq Stock Market’s floor.

The reason is easy. There isn’t one.

But the electronically linked nationwide network of brokers, a market that exists largely in cyberspace, has created what it hopes will be an enhanced presence on television, intensifying its rivalry with the NYSE.

Inside its Manhattan offices, Nasdaq has gussied up a studio with an electronic display of stock information that can serve as a backdrop for TV reporters who want to convey the excitement of the market to viewers.

The centerpiece of Nasdaq’s new TV studio is a 55-foot wall of 100 TV monitors that will show computer-generated graphics and other information. But Nasdaq executives downplayed the notion of brawling with the NYSE for TV exposure.

“We didn’t wake up one morning and say let’s compete with the New York Stock Exchange,” said Frank Zarb, president and chief executive of the National Association of Securities Dealers, parent of Nasdaq. “But it does indeed give us the same kind of presence.”

The studio, an idea that was first conceived three years ago and cost about $8 million to build, may help take some of the mystery out of the Nasdaq Stock Market and give it a physical identity. However, it will bear no resemblance to the bustling trading floor of the NYSE.

The facility could break the monopoly on free television publicity the NYSE has enjoyed for many years. The NYSE has allowed TV reporters a smidgen of space on its trading floor to provide financial news - even as they are jostled by frenetic traders.

The sight is familiar daily on financial networks such as CNBC and CNNfn. The Nasdaq facility won’t provide a shot of chaos - or calm - on Wall Street, but market executives hope its display of up-to-the-minute stock activity might be a good substitute to lure broadcasters.

Nasdaq officials emphasized that the studio is intended to serve as a useful tool to present stock market information to investors in an exciting and easy-to-understand fashion. But they welcomed the opportunity to siphon some attention from the NYSE.

“Our real goal is to serve our constituencies but we’d be delighted if we did get that publicity,” said Alfred R. Berkeley III, Nasdaq president. “If we get it it’s the icing on the cake.”

And what does the NYSE think about the Nasdaq studio? A spokesman for the Big Board refused to comment.

A spot in the background on financial news broadcasts is significant for the two markets because it could help them recruit new companies to their listings and boost business.

The NYSE is the biggest stock exchange followed closely by the Nasdaq, which has enjoyed a meteoric rise. Last year alone, the Nasdaq added 1,009 new companies compared to 279 for the NYSE.

The exposure could also be a plus for Nasdaq, which is trying to clean up its image after battling price-fixing investigations by the government and negative publicity.

Nasdaq officials said they have received inquiries from several television stations interested in utilizing the studio, but no one has signed on yet. Officials said they aren’t sure whether stations will be allowed to establish permanent broadcast desks in the studio.

The facility will feature a live ticker that will list stock prices of companies using their corporate logos rather than the traditional and often-difficult-to-decipher alphabet soup of trading symbols. Television stations could also have the background display tailored to show information on specific companies.

The TV display will not only provide information about the Nasdaq and its member companies, but also will carry information such as the performance of Dow Jones Industrial Average and trading volume on the NYSE. It also will be linked to the trading desks of Nasdaq brokers nationwide.

Besides functioning as broadcast production facility for the financial media, Nasdaq hopes to make the studio available to investor groups, schools and to companies for board meetings and conferences.