Archipelago IPO Looks Well-Timed

While the NYSE is currently under scrutiny for poorly regulating its floor brokers, Archipelago stands out as an example of good corporate governance, some say. The company's electronic stock exchange known as Archipelago Exchange, or ArcaEx, operates the exchange business and regulation is carried out by the Pacific Stock Exchange. The Pacific Stock Exchange merged with Archipelago last year and each entity has a separate board.

Analysts also believe the potential reform of the trade-through rule could be a positive factor for Archipelago going forward. The trade-through rule requires traders to send orders to the exchange with the best price. For example, if an investor were willing to buy shares of IBM(IBM Quote) at $90.01 but the Big Board was offering a price of $90, the electronic exchange would be forced to let the NYSE process the trade.

While this sounds good in theory, Goldberg noted that it can take up to 30 seconds to execute a trade at the NYSE, in which time the price could have changed. Electronic exchanges argue that while their prices might not look as good as those on the NYSE, the orders can be processed immediately.

The trade-through rule is under active review by the SEC right now, and some believe it will enact a 3-cent exemption rule, which has already proven to be successful in a pilot program.

"It would take away a significant barrier of entry, which has held back a lot of market share gains for the ECNs, and has really maintained the 80%-plus market share for the specialists on the floor," Goldberg said.