Merged Electronic Trading Net to Set Sights on Nasdaq

摘要

Last week's announcement that Instinet Group Inc. will buy competitor A The Island ECN Inc. gives Nasdaq Stock Market Inc. another potential stock exchange competitor while further complicating its uphill battle to woo customers to its forthcoming SuperMontage electronic-trading system. Instinet's $508 million, all-stock purchase of New York-based Island will create an electronic communications net- work (ECN) that represents about 22% of Nasdaq's order flow, which "does take some of the thunder away from Nasdaq," said Damon Kovelsky, an analyst at Meridien Research Inc. in Newton, Mass.