Feeds

Nasdaq swoops for $1.9bn Instinet

Keeping pace with NYSE

  • alert
  • submit to reddit

Reducing security risks from open source software

The Nasdaq, long rumored to have its eye on Instinet, has gotten its electronic patsy for $1.9bn in cash. In so doing, the Nasdaq closed the second major deal this week of US financial markets, following NYSE which merged with Archipelago.

The structure of the Nasdaq/Instinet buy is quite complex. Once the deal is completed, Instinet's electronic marketplace - INET - will be combined with Nasdaq's existing business. Nasdaq, however, will sell off Instinet's other business to a number of companies.

Private equity firm Silver Lake Partners will gobble up Institutional Broker - Instinet's brokerage subsidiary - for $208m. The Bank of New York will then buy the Lynch, Jones & Ryan, Inc. (LJR) securities subsidiary for $174m in cash.

“This transaction will allow NASDAQ to compete more effectively with other U.S. and international market centers by making our technological platform more competitive, which will result in greater cost efficiencies and improved quality of execution in our market - qualities that today’s individual and institutional investors demand," Nasdaq CEO Bob Greifeld.

In a similar deal, NYSE and Archipelago agreed to form a publicly traded company that is 70 percent owned by the venerable NYSE and 30 percent owned by the upstart electronic exchange.

The two deal together highlight a trend toward consolidation in the US stock markets and the heightened role of electronic trading. ®

Related stories

Sun opens processor auction house
Couple defeats Merrill Lynch's stock rating system
Air Fiorina takes flight on Big Board

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.