US stockmarket Nasdaq has for the first time moved its monthly matched share of Nyse-listed stocks into double digit figures, as investors increasingly turn to automated trading methods to execute transactions.
According to monthly trading data from Nasdaq, the number two market operator matched 10.75% of Nyse-listed stock in July, up from 8.9% in June. The nmbers are culled from transactions electronically matched by the Nasdaq Market Center, Brut and the Inet ECNs.
Nasdaq hailed the figures as evidence that its acqusition of Inet is bearing fruit as more trades are executed without human intervention. Nyse, which acquired automated exchange Archipelago last year, is working to introduce a hybrid system which will cater for floor brokers as well as meet demands for electronic dealing.
US financial markets are preparing for the introduction of new trading rules known as Reg NMS which are expected to further accelerate the trend to automated execution. Nasdaq has moved to take advantage of the situation by offering aggressive price reductions in an effort to capture more liquidity electronically ahead of the switch.
Chris Concanon, Nasdaq EVP, says: "Nasdaq's capture of Nyse market share has been on a strong upward trajectory for the last 12 months, We attribute this to trading behaviour changes in advance of Reg NMS, our purchase of Inet, the premier platform for electronic trading, and competitive pricing."