Island ECN to send trade reports to Cincinnati market
WASHINGTON, Jan 30 (Reuters) - Island ECN Inc. said on Wednesday that it will start reporting most trade reports through the Cincinnati Stock Exchange early next month instead of the Nasdaq Stock Market.
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``It's an electronic function, it's where the trade gets reported. We will now report that information to Cincinnati,'' said Andrew Goldman, executive vice president of the New York-based electronic communications network.
Currently, Island, which allows buyers and sellers to trade securities over the Internet, reports electronically its market data generated from consummated trades of Nasdaq-securities to Nasdaq, which then sells the data.
Goldman said Cincinnati will return the revenue, which will be split equally among the sellers, buyers and Island, which has become the largest ECN by trade volume.
``This really comes down to being able to deliver greater economic value to our subscribers,'' Goldman said. "This is a win-win for them.
The move to re-route market data through Cincinnati will be phased in starting next week and approval by the market-regulating Securities and Exchange Commission is not needed, Goldman said.
Under the plan, Island will report to Cincinnati all transactions in Nasdaq securities of 100 shares or larger that do not involve Nasdaq's SelectNet system and subscribers will not have to pay certain Nasdaq fees, Island said.
All Island trades will continue to appear on the Consolidated Tape.
Standing to lose from move, Nasdaq, the No. 2 U.S. stock market behind the New York Stock Exchange, said it was expecting the move.
``We've been planning for it. As a matter of fact, we've budgeted for it.'' Nasdaq spokesman Scott Peterson said, adding that Island's bid and asks will still be posted on Nasdaq's system. |
