Friday, April 22, 2005

Nasdaq finalizes acquisition of Instinet

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."

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From Bloomberg:

" 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. "

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