Island ECN

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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,[1] 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.[2]

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.[3] 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.[4] The recently established NASDAQ Options Market trades options electronically using an equities-trading system it acquired from INET.

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