The Amazing Loss of Control: Pushing the sellside around?
Traders Magazine, May 2005
The tide is turning for Nasdaq, the electronic stock mart that once got whipped so badly by regulation, ECNs and a brutal market, that it seemed close to drowning in a sea of red ink. Now it is back playing in the big leagues again, having signed a deal to acquire INET from Reuters in a $934.5 million transaction for Instinet that had an overall value of $1.9 billion. The deal is expected to take about six months to close. So, with this giving Nasdaq a market share of perhaps between 65 percent to 75 percent in the trading of its own listed stocks, more bells and whistles and places to cut overlapping services, what does it do for the very foundation stone of this once quixotic marketplace? Wither the Nasdaq market maker?
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