reportedly is negotiating to acquire rival electronic trading platform
and could have a deal in place by the end of the month.
The companies run electronic networks on which stock buyers and sellers are matched. Instinet was recently passed in trading volume by Island, but would nevertheless be the acquiring company since it's the larger of the two. Publicly traded Instinet is a unit of
The Wall Street Journal
, the $500 million acquisition would combine the two biggest electronic trading platforms and pose the largest threat yet to Nasdaq. Nasdaq on Thursday said competition from such rivals had hurt its earnings.
Together, Island and Instinet handle about one-fifth of all share volume in Nasdaq-listed companies. Last year, Island had revenue of more than $150 million and pretax income of more than $40 million, the newspaper reported. Instinet's revenue last year totaled $1.5 billion with net income of $144.8 million.