Island ECN (electronic communications network) became one of the financial markets' fastest-growing electronic trading networks in the two years after it was spun off from parent company Datek Online in late 2000, when it was the market's second-largest. From then until its acqusition by Reuters-owned rival Instinet in 2002 for over $500 million, Island increased its NASDAQ exchange daily share order flow from 200 million to over 500 million and grew its NASDAQ-trading market share from eight percent to 12 percent over the period.
Parent company Instinet Group then amalgamated Island ECN and its own Instinet ECN into a new electronic marketplace called INET, the company announced in late 2003, shortly after a major fee reduction. Less than two years later the NASDAQ group announced it would buy the Instinet Group for an undisclosed sum and incorporate the INET ECN platform into its own. The recently established NASDAQ Options Market trades options electronically using an equities-trading system it acquired from INET.
- ↑ Instinet Acquires Island ECN. InternetNews.com.
- ↑ Island ECN (US). Advent International.
- ↑ Instinet ECN and Island ECN Lower Routing Prices for All Clients. Business Wire.
- ↑ NASDAQ's INET ACQUISITION CLEARS DOJ. NASDAQ.