Instinet set to turn its back on Nasdaq

NEWS US brokerage Instinet may move all its business in Nasdaq stocks away from the Nasdaq exchange, in a move that will hit the stock market hard. Instinet runs one of the largest electronic stock trading systems and provides around 10 per cent of trading on Nasdaq but is now looking at taking its business elsewhere. According to the Financial Times, Nasdaq is trying to encourage its trading community to continue displaying quotes and reporting transactions on its own systems, but Instinet's biggest rival, Island ECN, has already made the move away from Nasdaq and is displaying information on the Cincinnati Stock Exchange and Instinet looks set to follow suit.