Discussion in 'Order Execution' started by mskl, Oct 3, 2003.

  1. mskl


    A few months ago I read somewhere that Instinet and Island would be combining their order books (probably using Island's technology). This was suppose to take place in a roll out schedule sometime in November. I just checked their respective websites and did not see anything.

    Does anyone know if this is still going to happen?

  2. I'm not an SRO person, but I believe that it could be a while. If the books were combined it wold probably result in only one ECN broadcast, meaning either INCA or ISLD, not both.

    There has also been a great deal of changes in the ECN market and problems with recievables. INCA may be rethinking their strategy, and changing direction. Who knows if the proposal is still pending approval?

    I guess we'll just have to wait and see.

  3. qazmax


    Full merger?? no idea...

    Currently... INCA does check the ISLD book on the way in, but not once posted.

    ISLD never checks INCA.

  4. mskl


    I found the answer to my own question (if anyone cares...)

    Please see the following link: (Oct 1st press release)

    If you look near the bottom you will see:

    We are committed to working on your behalf to build the most efficient, liquid and transparent market possible. Since our merger, Island and Instinet have been working to develop and implement a plan that will deliver the benefits of a combined liquidity pool to our clients.

    The first public step in combining the marketplaces will occur on October 27, 2003, when Island will change its Market Participant Identifier from 'ISLD' to 'INET'. Following this, we will be providing more definitive dates and information regarding the integration of the two order books.

    So, they are still looking at combining the order books in the near future. I also called Instinet today and was told that it would definitely start before year end.
  5. hmap1


    I tell you. Both business models do not mix here. I hope they keep them separate to some degree because I cannot imagine any institutional traders want their 20000 share orders being picked off in 50 lots!

  6. Could not agree with you more....In fact....i would market them in two separate and distinct ways....Some traders only trade in inca and some on ilsd...why not keep it that way but link them up so your other book always gets 2nd crack?
  7. hmap1


    2 Different business models and 2 different types of traders. What benefit is merging the books? Sounds like they will be cutting their own throats when what they should be doing is grabbing as many styles of trading as possible.
  8. OHR


    Merging the books will only anger customers that like the unique features of each system. Here's two things that I've heard:

    a. Combined platform will be sub-penny in all stocks (like ISLD is now). Sub-penny haters will be ticked off

    b. The ISLD "hidden order" will be eliminated (it is not on INCA now) so traders that rely heavily on that will be mad

    Could be big opportunity for ARCA, BRUT to pick up volume
  9. qazmax


    In September of last year, Island Holding Company completed its merger with
    Instinet Group. Since then, we have worked aggressively to deliver the
    benefits of the combined organization to you.

    To position ourselves to better serve you, Instinet Group will reorganize
    into two separately incorporated subsidiaries that are independently
    operated and managed: Instinet, The Institutional Broker; and INET, an
    Automated Trading System (ATS).

    Instinet, The Institutional Broker, will continue to offer its broad range
    of global agency brokerage services to institutional and broker-dealer

    INET will offer professional investors and traders the opportunity for
    faster executions and better pricing in one of the largest marketplaces for
    NASDAQ-listed securities.

    INET will be created by consolidating the Island ECN and Instinet platforms
    to form one large limit order book. While we have already increased
    interaction between the books since the merger, executing close to 7 billion
    shares through cross-system matches, we believe that one consolidated book
    will increase liquidity, improving execution quality and providing greater
    opportunities for price improvement.

    The first external change in preparation for the consolidation will occur on
    October 27, 2003. Island will officially change its Market Participant
    Identifier (MPID) from 'ISLD' to 'INET'.

    The next step in the process is to migrate all order flow to INET. As early
    as mid-November, the 'INCA' quotation will be phased out from the
    Alternative Display Facility (ADF) and all orders will be represented in a
    single marketplace. This migration to INET (currently the Island platform)
    will be implemented on a security-by-security basis. As we move further
    into the process, we will provide more definitive dates and information.

    Most Subscribers will not need to do anything to support these changes.
    However, we've prepared a list of frequently asked questions (FAQ) for your
    review. To access the FAQ, click the link below or cut and paste it into
    your browser's 'Address' field:

  10. c_verm


    This could be a good thing. It would provide more information as to were support and resistance levels are in a stock. I think its good idea.
    #10     Oct 13, 2003