Nasdaq OMX claims it executed more Nyse-listed stocks than the New York Stock Exchange for the first time last Friday, a milestone figure that it is set to re-ignite the debate about the electronic trading models employed by the rival exchanges.
Nasdaq claims thats its matched market share in Nyse-listed securities ran to 25.66% on Friday, surpassing Nyse's 25.61% share.
Masdaq's success in winning business away from the Big Board is being hailed as a victory for screen-based trading over the hybrid open outcry and electronic model deployed by Nyse since 2006.
The Nasdaq trading data will lend a sense of urgency to Nyse executives as they seek to push through a new set of reforms to the market.
In June, the Nyse filed proposals with the US Securities and Exchange Commission that will result in fewer privileges but more freedom for specialist floor traders, who have been pulling out of the market in response to declining business volumes. Under the proposals, specialists will no longer be allowed to receive electronic orders before they are displayed publicly, effectively burying the hybrid model.
The introduction of new market-wide regulations such as Reg NMS have accelerated the trend towards all-electronic trading in the US markets.
"There has been a sea change in how and where stocks trade," says Chris Concannon, EVP, transaction services, at Nasdq OMX. He describes Friday's trading data as "a milestone that speaks to that trend."