Celent Communications, a Boston-based research firm, believes that Nasdaq will achieve 35 percent market share in 2005. In a report titled, "The Nasdaq Stock Market: Here for the Long Haul?" the firm suggests that Instinet and Island "will consolidate trading activity into one ECN and will return to Nasdaq's fold."
It also predicts, "ArcEx market share will level off as its new business matures and that some of Nasdaq's attempts to attract more order flow, such as post-trade anonymity and bi-lateral linkages, will succeed in reversing the current market share decline." If the above predictions do not come to fruition, Celent suggests the Nasdaq market share will drop below 10 percent, and the market will be forced to reevaluate its transactions business.