Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?




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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.