The Securities and Exchange Commission's decision to do away with the rule eliminating an initial public offering (IPO) from being traded on the first day by exchanges other than the one it listed on will be a blow to the New York Stock Exchange.

Until now, the NYSE has benefited from having exclusivity in trading the large volumes that an IPO generates on its first day. Traditionally volume is significantly larger on the first day than the second and third days and generates a large amount of fees for the exchange.