With the market focused on exchange expansion by acquisition, International Securities Exchange (ISE) and Nasdaq last week announced significant organic growth plans, with the former announcing the launch of its venture into equity trading, ISE Stock Exchange (ISESE). Nasdaq also crossed the equity/options divide by launching options order routing, though it did so through existing exchanges rather than its own listing.
ISE was expected to commence trading in the third quarter. The exchange said it would take a majority share in the venture although it only expected to invest a nominal cash sum, with the $32m establishment costs being paid by a raft of partners from the banking and brokerage community.
These included Citadel Derivatives, Interactive Brokers (IB), Bear Stearns, Deutsche Bank and JPMorgan Chase, further establishing the trend...