The market consolidation continues with the Nasdaq and Instinet finalizing their widely rumored deal on the heels of the NYSE Archipelago deal.
From Reuters (the previous majority owner of Instinet):
" As a condition of the deal, Reuters will sell Instinet's electronic trading network to Nasdaq."
Latest News and Financial Information | Reuters.com
" Chicago-based Archipelago, the third-largest electronic market for U.S. stocks, had a 23.5 percent share of trading in Nasdaq-listed stocks in the first quarter. Instinet, which is scheduled to report first-quarter results on Monday, has had about 25 percent. Both electronic exchanges and electronic trading systems known as ECNs can trade Nasdaq stocks.
``Competition from ECNs and other electronic trading platforms has significantly reduced our market share in executions in Nasdaq-listed securities,'' Nasdaq said in a recent SEC filing. "