Broadway and other firms use ECNs similar to but on a smaller scale than Reuters' Instinet.
And with Instinet he achieved the near-impossible: eliminating the acquired company's costs while keeping--indeed increasing, revenue.
After recently launching a dark options trading platform, Instinet is setting its sights on futures.
Simultaneously, the cost of technology and regulatory compliance has skyrocketed, said the Instinet review.
FORBES: Equity Markets Will See Less Of The Same -- Instinet
The new trading regulations, along with the Instinet deal, give it the opportunity to gain share, Greifeld said.
Examples of some ECNs are Instinet, SelectNet, Island, Archipelago, Brut, and Bloomberg Tradebook.
Chi-X Global, a subsidiary of Instinet, recently received a proprietary trading system license from the Japan Financial Services Agency.
Instinet has a sizable global scope already with subsidiaries such as Chi-X Canada.
Morgan and Morgan Stanley and Instinet (an electronic brokerage), last month bought control of Tradepoint, a British electronic exchange.
Embarrassingly, the next day software problems caused Nasdaq to remove Instinet and Island prices from its screens for several hours.
So he bought Instinet and Brut, shifted trading from souped-up computers to inexpensive servers and outsourced all of the data centers.
No surprise that Instinet does not like a financial transaction tax which it says would directly impact the investment returns of end-investors.
FORBES: Equity Markets Will See Less Of The Same -- Instinet
Instinet acquired TORC Financial, a derivatives trading technology firm, last August.
No sooner had the fibre optics hummed with that news than NASDAQ revealed plans to buy Instinet, another ECN, owned mainly by Reuters.
Nasdaq will keep the INET electronic trading platform, which handles about 25% of the daily volume in Nasdaq shares, and offload the rest of Instinet in two pieces.
Trading has migrated to electronic markets, primarily Archipelago and Instinet-Island.
Instinet expects continued evolution of electronic execution management systems (EMS).
FORBES: Equity Markets Will See Less Of The Same -- Instinet
The FT reported that Nasdaq says it integrated Instinet in just nine months after acquiring the platform in 2005, a better record of integration than the NYSE and Euronext.
FORBES: Nasdaq makes technology superiority claim in its drive to acquire NYSE
Greifeld acknowledged the growing market competition that seemed to propel each deal forward, though he insisted Friday that the Nasdaq-Instinet transaction already was well on its way before the NYSE deal.
So there is no problem about who clears and settles in the proposed mergers between the New York Stock Exchange and Archipelago, an electronic exchange, or between Nasdaq and Instinet, another electronic exchange.
ECONOMIST: Post-trade concerns could hamper a pan-European solution
Nasdaq Stock Market Inc. (nasdaq: NDAQ - news - people ) is said to be exploring the purchase of Instinet Group , the electronic exchange currently majority-owned by Reuters PLC .
Nasdaq Stock Market (nasdaq: NDAQ - news - people ) on Friday unveiled its long anticipated deal to buy Instinet (nasdaq: INGP - news - people ) from Reuters .
Rival Nasdaq is already planning its own merger with the electronic-trading platform of Instinet, and Merrill Lynch and a consortium of banks and hedge funds are pumping money into building up the trading capabilities of the Philadelphia and Boston exchanges.
Unlike NYSE's Archipelago deal, which was negotiated privately with the aid of only one investment bank, Goldman Sachs (nyse: GS - news - people ), Nasdaq was involved in a bidding process for Instinet, which is 62% owned by Reuters.
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