Reuters Plc reported that third-quarter revenue for its Instinet electronic trading system grew 9% to 129m pounds ($213m). US revenue for the electronic communications network was flat in the third quarter, reflecting the slowing of Nasdaq volume growth this year and some attrition of price and market share due to competition, Reuters said.
Several ECNs are currently vying for business amid the increasing volume of after-hours trades in the US and the competition was heightened earlier this month with the formation of a new one by Spear, Leeds & Kellog; Fidelity Capital; Donaldson, Lufkin and Jenrette; and Charles Schwab Corp.
Instinet International grew 30% largely due to strength in European markets, Reuters said. A $10m branding campaign for the service was launched recently and Instinet also increased investment in its new fixed income product in the third quarter by a further $6m, in addition to acquiring German fixed income broker Montag Popper and Partners.
