Two days after the New York Stock Exchange announced plans to combine with the Archipelago electronic network, the Nasdaq stockmarket unveiled a similar deal. &to=http:// english.pravda.ru/comp/2002/08/16/34712_.html ' target=_blank>Nasdaq, the NYSE's major rival, said on Friday it would buy the nation's other major electronic trading network, owned by Instinet Group, for $US934.5 million ($1.12 billion).
The move caps a period of consolidation during which the number of US stock-trading rivals shrank from more than a dozen a few years ago to four major players at the beginning of this year. "You end up with two strong competitors that are equal," said Jodi Burns, a senior analyst with Celent Communications, consultants and researchers.
Unlike the NYSE, where 10 per cent of shares are traded electronically and the rest through a floor-auction system, Nasdaq is 100 per cent electronic. So individuals placing trades there are not likely to notice any difference after the Instinet purchase, said Jim Angel, a finance professor at Georgetown University, tells the Sydney Morning Herald.
According to Bloomberg, shares of Nasdaq, which plans to keep Instinet's &to=http:// english.pravda.ru/economics/2001/10/25/19122.html ' target=_blank>electronic-trading unit, INET ECN, surged US$2.78 on Friday, or 26 per cent, to US$13.43, the biggest gain since the company went public in July 2002.
Instinet fell 51USc, or 9 per cent, to US$5.19 after investors had speculated it would fetch a higher price.
"We should use shock therapy to sober up the Americans. In this case, the Americans will speak about the need to resume dialogue. There is no other option"
The United States is concerned about the current crisis in the relations with Russia and suggests returning to reasonable policies to avoid a nuclear war