Feeds

Nasdaq swoops for $1.9bn Instinet

Keeping pace with NYSE

  • alert
  • submit to reddit

Business security measures using SSL

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

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.