Instinet Inc., a global agency broker, last month closed its second fiscal quarter with the highest U.S. and international institutional volumes in its history, the second consecutive quarter it has done so.
In addition, during the quarter the firm overhauled its core matching technology, introduced the Nighthawk "dark" liquidity aggregation algorithm, announced the addition of a new Asian office and extended its reach to more than 50 markets worldwide.
"Instinet's momentum continued in the second quarter as we significantly increased our trade volumes in each of our three global regions - North America, Europe and Asia," said Edward J. Nicoll, Instinet CEO. "Given the array of tools Instinet provides worldwide to help our clients achieve best execution, Instinet is extremely well-positioned for success in the rapidly-evolving global securities market."
- U.S. Volume More than Doubles, Increasing to 189 Million Shares: Instinet's average daily U.S. trade volume (ADV) increased dramatically to 189 million shares, or 3.7 percent of the total U.S. equity markets volume. This represents a volume increase of 103 percent over Q2 2005 and 42 percent over Q1 2006, and a market share increase of 54 percent over Q2 2005 and 46 percent over Q1 2006. "Institutions look to Instinet to provide the liquidity, technology and agency sales trading expertise needed to achieve best execution," said Alex Goor, Instinet Co-President. "With that in mind, a primary focus this quarter was to improve the technologies necessary to deepen the pool of upstairs liquidity we offer."
- Asian Consideration Traded More than Doubles, Increasing to $586 Million: Instinet continued its extremely strong growth in Asia, increasing its daily consideration traded in the region to $586 million (USD), a 119 percent jump from Q2 2005. Instinet continues to see progress in Japan, where it increased its share of total Tokyo Stock Exchange volume to 2.0 percent in Q2 2006
- European Consideration Traded Up 68 Percent: Instinet grew its average daily consideration traded in Europe to $1.078 billion (USD) in Q2 2006, an increase of 68 percent over Q2 2005. Instinet again outgrew the market with its European market share rising by 15 percent over Q2 2005. "The rapid growth of our international business continued this quarter, as Instinet remains at the forefront of several secular trends in the global markets," said John F. Fay, Instinet Co-President and head of its international business. "The combination of our electronic platform, upstairs liquidity and local sales trading expertise makes Instinet the broker of choice for a growing number of global institutions, particularly those with cross-border trading needs. Additionally, we will expand our international offering later this year with the launch of Instinet Chi-X, an ultra-low cost, pan-European ATS, and the opening of our Singapore office in the fourth quarter."
- Work on Global Trading Technologies Continues
- In May, Instinet introduced a completely re-architected Instinet CBX (Continuous Block Crossing(SM)), the firm's institutional-only matching technology used in Asia, Europe and North America
- In May, Instinet added list trading functionality to Instinet Trading Portal, a global front end for block and active traders
- In June, Instinet launched Nighthawk, a stealth liquidity aggregation algorithm that simultaneously accesses eight market destinations, including most major pools of dark liquidity
- New Asian Office: Instinet announced plans to expand its Asian coverage by opening a sales and trading office in Singapore. The new location is expected to commence operations in the fourth quarter and will compliment Instinet's presence in Hong Kong and Tokyo
- New Market Destinations Added: In the second quarter, Instinet added access to seven new market destinations - Budapest Stock Exchange, Johannesburg Stock Exchange, Liquidnet H20, NyFix Millennium, Pipeline, Prague Stock Exchange and TSX Venture Exchange - increasing the total number of markets worldwide to which Instinet provides access to 55