Affiliated Computer Services Inc. said it plans to move its stock listing from Nasdaq to the New York Stock Exchange.
The Dallas-based bank computer services firm said the change should reduce volatility in its stock price caused by "SOES bandits."
Such traders use Nasdaq's automated Small Order Execution System to find market makers whose "bid" and "ask" prices are out of synch with market norms. The traders buy stock from the out-of-step firm and immediately sell it at the going price, turning a quick profit.
This practice, while legal, can cause stock price rises and drops that seem to defy reason. Volatility in ACS' stock lost the company's shareholders more than $2 million last year, according to Mark A. King, chief financial officer. He said investors were "screaming at us to go to the New York Stock Exchange," where such trading practices are "not an issue." Affiliated did not specify when the move would be completed, but it said the cost would be $200,000, plus $10,000 in recurring annual charges.
Other bank technology providers that have left the Nasdaq for other exchanges include Bay Networks Inc. and Fair, Isaac & Co.
Nasdaq recently introduced operational changes aimed at reducing the problem caused by SOES bandits.