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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: TFF who started this subject	5/26/2004 1:13:18 PM
From: TFF	of 12617

Nasdaq prepares for SEC reforms with Brut buy By Andrei Postelnicu in New York Published: May 26 2004 5:00 \| Last Updated: May 26 2004 5:00 The Nasdaq stock market yesterday announced the purchase of Brut, an electronic trading platform, from SunGard Data Systems for $190m in cash in an attempt to prepare for changes in the regulation of stock trading. Nasdaq said the acquisition of its own broker-dealer operation would enable it to send orders to several of its market makers at the same time. The move comes as the Securities and Exchange Commission is considering a rule that would make leading stock exchanges and markets in the US connect with each other and execute each other's orders in a new landscape of fast markets. Currently, stock trading orders have to be executed on the market offering the best price, regardless of how fast it executes the order. Bob Greifeld, Nasdaq chief executive officer, said: "This is just one more step in Nasdaq's multi-pronged strategy to increase our share of trading, raise the number of Nasdaq-listed companies ... and serve investors better." Mr Greifeld took over as CEO of Nasdaq a year ago with a mandate to defend market share and streamline operations. Jodi Burns, an exchanges analyst at Celent Communications, a consultancy, said the acquisition appeared premature because regulatory changes considered by the SEC are not yet final. She added that the acquisition would not increase the Nasdaq's market share of trading in its own stocks. "Brut claims to trade 11 per cent of the Nasdaq market, but in fact, most of this is conducted over the Nasdaq system and is therefore already counted in Nasdaq market share," she said. Nasdaq has seen market share decline in the face of stiff competition from automated marketplaces such as Brut and Archipelago.

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