Schwab to Quit NYSE for Nasdaq

Charles Schwab Corp. said Thursday that it would drop its New York Stock Exchange listing after 18 years in favor of the Nasdaq Stock Market.

With a market value of $19.7 billion, San Francisco-based Schwab is the biggest company ever to leave the NYSE, according to Nasdaq.

Schwab Chief Financial Officer Chris Dodds said the decision to list on Nasdaq was based on an analysis of how the stock traded at both markets over the last two years.

“We have had an 18-year relationship with the NYSE, which was very beneficial for Schwab as a young company going public, but our analysis of trading volumes and spreads in our stock give us great confidence in the Nasdaq system,” Dodds said. “We also benefit from lower listing fees in an environment where we try to watch every penny.”

Schwab shares fell 19 cents to $15.27. The company will start trading solely on Nasdaq on Tuesday, and the ticker will change to SCHW from SCH.

The move comes a month before the Big Board plans to close its merger with Archipelago Holdings Inc., a Chicago-based electronic market.

The exchange is betting the Archipelago combination and the rollout of Hybrid, a blended electronic and floor-based system, will allow the 213-year-old institution to satisfy investors seeking faster trading.

Schwab is the second departure from the Big Board in two months. Cadence Design Systems Inc. left at the end of October.

Schwab and Cadence were among the six stocks that in January 2004 started listing on both markets.