UPDATE - Instinet Encounters Gltiches with Nasdaq's Technologygreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
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Title: Instinet Encounters Nasdaq-Driven Technical Difficulties
Tuesday May 23 7:05pm
Source: PR Newswire
NEW YORK, May 23 /PRNewswire/ -- Instinet Corporation, a wholly-owned subsidiary of Reuters Group PLC (Nasdaq: RTRSY) and the world's largest agency broker, announced that Instinet was unable to fully serve its customer base from 9:56 AM EDT to 10:52 AM EDT, due to technical glitches created by Nasdaq technology.
Due to software and technology problems with Nasdaq's SelectNet Interface, Instinet was forced to pull its best bids and offers from the Nasdaq Level II quote line (the "INCA" quote). A significant portion of Instinet's data messages to the Nasdaq gateway were rejected by Nasdaq. Nasdaq confirmed their responsibility for the technical difficulties.
This problem affected investors' ability to access and execute against potentially better prices than were available in Nasdaq during that time period. In addition, Instinet is required under Reg ATS to make this data available to market participants.
Nasdaq's cumbersome and inefficient market is illustrated by today's difficulties: first, when investors' cannot access better prices and Instinet's liquidity, it directly impacts their performance; and, second, Instinet's ECN is mandated on the one hand to operate in the Nasdaq environment and simultaneously cannot comply with regulatory requirements because of that environment.
Michael Galano, Senior Vice President and Head of US Equities, commented: "The technical complications we encountered today signal yet another way that investors are being affected by Nasdaq's inefficient technology. Today's difficulties affected investor's ability to access Instinet's pool of liquidity and potentially better prices on Nasdaq securities." Mr. Galano continued, "Earlier this year, Nasdaq announced that it was unable to commence decimal trading until next year, showing its inability to move quickly for the benefit of investors."
Instinet Corporation, the world's largest agency brokerage firm, trades in over 40 global markets daily and is a member of 19 exchanges in North America, Europe, and Asia. The firm is committed to bringing efficiencies to capital raising worldwide by using technology in securities trading and research to bring issuers and investors closer together.
Instinet is the worldwide industry leader in applying advanced technology to agency trading in equities. As a pure agency broker, Instinet seeks only to increase its clients' investment performance by providing them instant access to global liquidity, enhanced efficiency, and greater opportunities to reduce transaction costs.
The firm was founded in 1969 and was acquired by Reuters Group PLC (Nasdaq: RTRSY) in 1987.
Source: Instinet Corporation Contact: Silvia Davi of Instinet Corporation, 212-310-7792, email@example.com
-- (Dee360Degree@aol.com), May 24, 2000