The Boston Stock Exchange has closed its equities electronics trading unit under pressure from more established bourses, leaving others to the fierce competition for market share in the wake of new federal regulations, Financial News reports.
The exchange said in a statement that its Boston Equities Exchange was closing yesterday because it “struggled to gain market share in large part due to the overall strength of market incumbents.”
The Boston Equities Exchange was launched two years ago with Citi, Credit Suisse, Fidelity Brokerage and Lehman Brothers.
“The situation that exists today will not be the same a year from now,” says Brad Bailey, senior analyst at Aite Group. “Even by the end of the year there will be additional consolidation. If the exchanges are not getting a certain kind of flow under Reg NMS, they’re probably thinking that they’re going to do something else,” he says.