Updated from 1:57 p.m. EDT

The financial sector was declining along with the broader market Tuesday, but a few names such as

Investment Technology Group

(ITG)

managed to collect sizable gains.

The New York-based broker-dealer surged 7.3% to $42.30 after investment firm D.E. Shaw, which has taken a 6.2% stake in the company, urged management to sell "some or all of ITG's businesses." Should this fail to generate an acceptable price, D.E. Shaw suggests an "aggressive" $600 million share buyback.

Lehman Brothers

( LEH) was another winner, trading actively after it

blazed past

estimates for the quarter ended May 31, earning $1.26 billion, or $2.21 a share. The stock closed up 0.5%, or 38 cents, to $76.06.

Elsewhere, the Justice Department

cleared the way

for the

Chicago Mercantile Exchange

(CME) - Get Report

to buy the

Chicago Board of Trade

( BOT). CME dipped 1.5%, and CBOT closed down 0.3%.

IntercontinentalExchange

(ICE) - Get Report

, which has also been vying for the CBOT, said its New York Board of Trade subsidiary set a new daily volume record of 407,150 contracts, breaking the 400,000 mark for the first time. Shares tacked on 1.5% earlier in the day but closed down 21 cents, or 0.1%, at $148.98.

On the flip side,

American Capital Strategies

(ACAS)

dropped 2.7% on word it will offer 17 million of its shares -- 12 million from the company itself and the rest from institutional investors -- with an underwriters' option for 2.55 million more to cover overallotments. Shares closed at $44.67.

Commerce Bancorp

(CBH) - Get Report

was also on the losing side after the New Jersey bank scaled back its expansion plans for this year and said it will

cancel and preempt

certain deals in order to begin resolving a

regulatory probe

first announced in January. Oppenheimer cut the bank to hold from buy. Shares shed 1.5% to $33.36.

The

NYSE

Financial Sector Index, which contains all but one of the above stocks, lost 1.3% to 9651.24. The KBW Bank Index dropped 1.3% to 114.14.