The New York Stock Exchange would probably get more out of a deal with the London Stock Exchange than its rival, Nasdaq, analysts believe. Most savings would come from combining trading platforms.

Richard Herr, analyst at Keefe, Bruyette & Woods, said: “I think New York has the edge in terms of synergy only because their systems are a little more in flux than Nasdaq’s are.”

The NYSE, which went public on March 8 through the acquisition of listed rival Archipelago, is in the process automating its trading floor with a “hybrid” system which could benefit from the LSE’s SETS technology.

“If NYSE were to acquire the LSE, it could feasibly have more cost saves (than Nasdaq could achieve) because it could adopt the SETS trading technology,” Herr said.

Stuff.co.nz writes: “Nasdaq is a purely electronic market and has been bulking up through acquisitions of rival platforms.”

Herr estimates that the most Nasdaq could save on the LSE’s costs would be about 20 percent, or £100 million ($US55-60m), largely from lower headcount and some technology synergies.

Sandler O’Neill analyst Richard Repetto wrote in a research note published on Monday that potential cost savings make the LSE “attractive” to any buyer.

“We believe the potential cost synergies from consolidating electronic trading platforms is significant,” he wrote.

While the NYSE could benefit more from costs, Nasdaq could be a bigger gainer from the brand value of owning the LSE.

“Clearly listings are about brand and clearly the LSE is a very strong brand. NYSE similarly has a very strong brand and Nasdaq is growing in terms of stature — but it isn’t as strong a brand as NYSE or LSE,” said Herr.