Instinet today claimed that, according to a leading independent evaluator of institutional trading costs, it ranked first in value-added for both Nasdaq and Listed executions during 2001 when compared to a universe of full service brokerage firms. The rankings are based on information from a Plexus Group comparison survey published in April 2002 that compares execution quality for Instinet to a universe of 12 of the most active full-service brokers for which Plexus has data. This is the third consecutive year [1] in which Instinet was the No. 1 broker in execution quality for trading Nasdaq stocks when compared to individual brokers in the Plexus universe.
Mark Nienstedt, Acting President and Chief Executive Officer, Instinet Corporation explained, “Instinet’s aim is to help customers improve their trading performance. The increased difficulty of executing large orders has been much commented upon in the last year. We believe that these results demonstrate Instinet’s capabilities in helping clients achieve their goals despite the liquidity constraints of today’s markets. That Instinet has ranked first each of the past three years testifies to our strength and liquidity.”
In Listed Trading, Instinet contributed 13 basis points of value-added [2] versus a contribution of only 1 basis point for the full-service broker universe. In Nasdaq Trading, Instinet contributed 44 basis points of value-added vs. a shortfall of 6 basis points for the above mentioned universe.
Instinet also ranked as the No.1 broker in 10 out of 12 categories in Listed Trading, when compared to the full-service broker universe. These categories designate various levels of execution difficulty based on factors such as capitalization level, percent of the day’s volume, momentum and trade size. Instinet also ranked as the No.1 broker in 11 out of 12 categories in Nasdaq trading, when compared to 12 of the most active full-service brokers. Instinet’s value-added in these categories is higher than the next best broker by at least 20 basis points.
The Plexus Broker Universe is comprised of over 1,100 broker-dealers used in trades that have resulted from orders released by over 125 institutional equity traders at money management organizations with over $1.5 trillion in assets. The ratings, evaluations and rankings contained in this report are based on over 4,700,000 trades, compiled into the Plexus master database over the most recent four quarters.