Saturday, November 27, 2004

Marathon for Market Share

As of 5/2003, (source: Instinet had 30 percent of the share volume in Nasdaq stocks, and 4.5 percent in U.S. exchange-listed stocks. If AX and INGP became one company we're looking at accretive market share.
If AX and INGP join forces, ArcaEx would handle over 50% of NASDAQ volume!
Here's what I'm talking about: As of 10/2004 Arca had 2.3%-share of NYSE-listed volume, 27.0%-share for AMEX-listed volume, and 25.1%-share of NASDAQ-listed volume (source: . Accordingly, if AX and INGP join forces, ArcaEx would handle over 50% of NASDAQ-stock volume! To be sure, AX would grow its US-exchange-listed volume, as well.

Here's an article from 2002 that discusses Arca's acquisitions of GlobeNet and Redibook ECN: To me, this indicates Arca's willingness to buy instead of build. If you read the article from Fast Company (see below for details or just click this link to read) you'll see that Putnam is believer in grabbing market share.

The article addresses grabbing share - here's a snipet:
"As [Putnam] watched ArcaEx take its first tentative steps, Putnam says that it felt a little
anticlimactic. For a moment, he thought about everything that Archipelago had accomplished
since 1996: It had built the exchange. It had the jump on technology. And in those server farms, it
had enormous bandwidth. But in a sense, it had taken six years just to get to the starting line of
what's shaping up to be a marathon race for market share".


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