Island and Instinet Delay Migration Testing
As part of the merger of Instinet ECN and Island ECN into a single alternative-trading system to be called INET, the initial stage of implementing Instinet's new functionality will begin on Monday, Nov. 24. "This stage will be seamless to clients and will involve internal software upgrades and testing," according to an update on Instinet's Web site.
The second stage will involve rolling out Instinet Continuous Block Crossing facility (Instinet CBX) and ProActive SmartRouter to clients. This will be accomplished on a security-by-security basis, with the initial phase consisting of three stocks: Texas Instruments (TXN), VA Software Corporation (LNUX), and Oil Service Holders Trust (OIH).
Instinet intends to announce the start date of the second stage shortly, via e-mail to clients and on www.instinet.com/migration.
But according to UNX, an independent, institutional agency brokerage firm specializing in market-structure, Island and Instinet have delayed the consolidation of their limit-order books on the INET platform. "Beginning Nov. 17, it was expected that all SuperMontage test securities ending in 'ZZT' would be represented in the INET book, regardless of whether they were entered on the Island or Instinet platform," states UNX in an e-mail. UNX says the delay is not in the direct linkage between Instinet and the INET platform, but in the link between INET and the National Stock Exchange (formerly the Cincinnati Stock Exchange). INET ATS (formerly Island ECN) posts quotes on Nasdaq securities on the Cincinnati Stock Exchange. This arrangement will be modified early next year when INET also begins quoting on Nasdaq's SuperMontage.