Sandler O'Neill's Dunne Favors NYSE-Deutsche Boerse

New York Stock Exchange
Photo: Oliver Quillia for CNBC.co
New York Stock Exchange

Jimmy Dunne, senior managing principal of Sandler O'Neill, favors NYSE Euronext's merger with Deutsche Boerse ,he told CNBC Thursday.

So does former New York Stock Exchange chairman Richard Grasso. Both were interviewed about how the exchange coped after the Sept. 11, 2001, attacks during live coverage of President Barack Obama's tourof the World Trade Center reconstruction site in lower Manhattan.

The world is "going to evolve and things are going to be different," said Dunne, whose firm is not involved with the Deutsche Boerse merger or the Nasdaqand InterContintentalExchange Inc. hostile offer.

"I think what you’ve got to do is broaden your reach and defend your market share, and you’ve got to do that the most effective way you can," he said. "That’s your first responsibility."

Grasso said the merger with Deutsche Boerse allows the NYSE back into the clearance and depository business, which it "gave away" 40 years ago. "There’s an enormous profitability platform built into the back end," he said.

"The question for owners of the New York Stock Exchange is, do you want to take the premium right now or do you want to embrace the strategy articulated by the management of the stock exchange that down the road there’ll be great incremental value," Grasso said.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • Providing his outlook for 2015, Jonathan Golub, RBC Capital Markets chief U.S. market strategist, says interest rates and inflation will stay low and corporate buybacks will provide great market returns.

  • CNBC's Steve Liesman reports Minneapolis Federal Reserve president Narayana Kocherlakota has explained his dissent from the last Fed meeting. Liesman says Kocherlakota is not willing to look at the recent downdraft in inflation the same way Yellen has.

  • CNBC's Jim Cramer explains why he is watching Finish Line.