The NYSE-Archipelago merger gives the venerable NYSE, known worldwide for its trading floor, a strong electronic trading platform that it would have taken years to otherwise develop. The combined company, NYSE Group Inc, would also make the not-for-profit NYSE a for-profit enterprise.
Analysts have said a NASDAQ-Instinet deal would help stave off increased competition from the combined NYSE Group Inc. NASDAQ itself claims a 50 percent market share in trading its own listed stocks -- though analysts say that number is around 25 percent to 30 percent -- and 15 percent volume in NYSE-listed stocks. Both ArcaEx and Instinet have about 25 percent market share each in NASDAQ stocks and a minimal share in NYSE stocks.
The NYSE has a share of more than 80 percent in its own listings, and does not trade NASDAQ stocks on the floor of the exchange. But with ArcaEx, NASDAQ's archrival now has a vested interest in not only maintaining its own listed shares, but also stealing market share from NASDAQ. The Instinet deal, in addition to improving NASDAQ's trading technology, will also shore up NASDAQ's market share in its own stocks.
Greifeld added that the NASDAQ will have a "maniacal focus" on taking additional market share in NYSE-listed stocks.
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