Photo: Alan Rose nberg/ Ameri can Stock Exc hang e
resources toward building its business. The Amex is focused on improving its technology and becoming the voice for smaller companies. In June, Wolkoff testified to the Securities and Exchange Commission about the effects of Sarbanes-Oxley on smaller companies . The Sarbanes-Oxley Act was created in response to corporate scandals such as Enron, WorldCom and Tyco International. Its goal was to increase protections for investors by requiring more accurate and reliable corporate disclosures through various mechanisms including auditor independence and enhanced financial disclosure. There has been some fallout for smaller companies from Sarbanes-Oxley compliance costs. Wolkoff said about 20 companies have gone private. Tough Competition
While the Amex is aggressively pursuing the small- to mid-cap markets, it is not without its struggles. In July, Barclays Global Investors announced that it would move the primary listing for 81 of its ETFs, called iS hares, from the Amex to the New York Stock Exchange 70 I VALUERICH MAGAZINE FALL 200S
and the all-electronic Archipelago Exchange over a two-year period. Says Wolkoff, "while we are clearly disappointed and feel that we have lost a partner, we are still the leading listing venue for ETFs- in the first half of 200S, we launched 20 new ETFs. No other exchange launched a single new product. I'm confident that by the time Barclays has moved all of its products, the Amex will likely have made that number up and more. The Amex has always been much more than just a listing venue . We lead the industry in innovation and we work with multiple issuers to bring new products to the marketplace. We have a number of new products in the pipeline that I'm very excited about:' Challenges Ahead
As for Amex challenges ahead, says Wolkoff, "our No. 1 priority is getting technology into a state-of-the-art position and being compliant with NMS, which we will be doing this year and next. "Our next priority is the corporate state of affairs - i.e., the Amex organization and fees. We need to be nimble, be efficient, use our
resources to the best extent poss ible and maintain our independence:' The third priority is to continue to add as many new listings as possible. "We need for companies to understand that it's a new Amex. We are building our reputation, enhancing our technology and becoming an aggressive pursuer of listed companies .... We have a compelling value package:' As for any merger thoughts, that is not in the picture, says Wolkoff. "We are deep in the process of doing what we need to do- designing, planning and building- and we are not compelled to enter into a large-scale merger. We are not opposed to reaching out and establishing relationships; that's an important part of our future. However, we don't want to be taken over and put out of business because someone else wants to take over our order flow and eliminate a competitor. We have a clear focus and we plan to stick to our business strategy, I think in this era of big mergers and consolidation, the industry should be rooting for the Ame x as the exchange dedicated to serving the small- and mid-cap market." VR www. valuerichonline.com