Archipelago IPO Looks Well-Timed

The mutual fund trading scandal is another positive factor for market makers like Archipelago, which could see a rise in institutional volume, some analysts say.

With no hard figures to look at, however, it's difficult to say that Archipelago will be a roaring success, and the IPO is no sure bet. If structural reforms don't materialize, some experts believe the company could struggle going forward. James Angel, a professor at Georgetown University, said Archipelago is engaged in a "bloody battle for market share" with Instinet and Nasdaq, and he noted that "no one's making a lot of money in that space."

"Archipelago has done everything right in terms of gaining market share," he said. "They actually got their exchange registration, which Nasdaq has not been able to get, and they held onto their broker dealership, so they have the best of both worlds. The real question is: How are they going to make money and where are the growth opportunities?"

Angel said major structural changes at the NYSE would be a huge bonus for Archipelago. "The 800-pound gorilla here is the SEC," he said.

Archipelago's biggest investors include Goldman Sachs(GS Quote), E*Trade (ET Quote), J.P. Morgan Chase (JPM Quote) and Charles Schwab(SCH Quote), among others.

"The IPO could be a sign that they are looking pretty good right now, but it could also mean things aren't going to get much better and now's the time to cash out," Angel said. "The backers may be eager to get out. It remains to be seen."