Wednesday's Financial Winners & Losers

Nasdaq Stock Market (NDAQ Quote) rocketed 6%, after news that hedge fund manager Samuel Heyman has taken a 9% equity stake in the London Stock Exchange. The Nasdaq hopes to acquire the LSE, even after London officials rejected its $5.1 billion bid. Some see Heyman's move as an indication a deal is inevitable. But others say it could greatly increase the Nasdaq's purchase price, which might scuttle a deal and avoid any additional expenditure. Shares were up $2.63 to $40.95.

Friedman Billings Ramsey (FBR Quote) rose after the firm announced that it had agreed to a $4.5 million settlement with CompuDyne (CDCY Quote) and a William Blair-managed fund. CompuDyne had been feuding with Friedman Billings over its handling of a PIPE deal, or private investment in public equity. Shares were trading up 8 cents, or 1.1%, to $7.45.

LaBranche(LAB Quote) shares soared a day after federal prosecutors dropped criminal charges against five former specialists, who were accused of making improper trades in New York Stock Exchange-listed stocks. The decision by prosecutors to abandon the case is being seen by Wall Street as the elimination of one hurdle for the specialists firms, of which LaBranche is one of the largest. Shares rose $1.15, or 11%, to $11.85. ...