Buy Exchange Stocks Before They Buy Each Other


Following a day where exchange stocks soared, fueled in part by speculation of mergers within the group, are they still a buy?

Exchange stocks have been cut down so far this year on concerns that a prolonged bear market will slow trading activity.

Jon Najarian recommends several of the big name exchanges including NYSE Euronext , Chicago Merc , Nasdaq and ICE .

"I'm long all of these, because I do believe deals are going to happen", said Najarian.

He sees intense competition for who will win the credit default swap market and do it on an exchange.

That would be a huge part of the strategy for NYSE Euronext to put together the U.S. component with the European component in CDS, according to Najarian.

"If the NYSE Euronext deal came together, then I think that forces CME Group to do something similar with NASDAQ.", added Najarian.

Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to