Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

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May 31, 2002

Island's New Way To Fight Rivals

By Gregory Bresiger

Island ECN, which has been battling market makers for years, has come up with a new way to fight the competition. One of its units has joined them.

Island Execution Services has been granted market maker status by the National Association of Securities Dealers. As Traders Magazine went to press, Island Execution Services was soon expected to be using the Nasdaq auto-execution platform.

The combination of Island's electronic communication network with Nasdaq's platform is expected to generate much new order flow. It will likely make Island an even more formidable competitor for market makers, according to analysts.

Market makers are facing increased competition from ECNs, which are developing imaginative new ways to take business from them.

Recently, BRUT won approval to trade listed stocks via Nasdaq's Intermarket system. Two other ECNs, Archipelago and Market XT, have also won permission to use the Nasdaq Intermarket system. However, BRUT has also received SEC approval as an alternative limit order display for listed securities.