In August, Nasdaq’s matched market share of all US equity volume was 30.4 percent, which it said was more than any other US exchange for the fourth consecutive month.
Nasdaq’s matched market share in NYSE-listed securities grew to a record 19.3 percent, from 12.5 percent a year ago. Matched market share represents trades executed on Nasdaq and excludes those routed to other markets.
“We have absolutely lost market share in the US but we still have three times the matched volume of any other exchange,” says Duncan Niederauer, president & co-chief operating officer of NYSE Euronext. “Once we have stopped the bleeding we would expect to have a share that is in the high 60s.”
In order to position NYSE Arca, the NYSE’s electronic communications network, against Nasdaq, the rebate for NYSE-listed shares has been increased from 20 cents to 25 cents per 100 shares, regardless of volume, which is the highest for all customers among major US exchanges, according to NYSE, and should attract rebate-driven and proprietary traders seeking fast executions.
Sang Lee, managing partner at consultancy Aite Group, said NYSE Arca had become very competitive against Nasdaq in terms of price. He said: “I would expect Nasdaq to respond this week or next week. It remains to be seen whether New York has done enough to attract new players to the hybrid as they have made three of four changes to prices in the last year and have continued to lose market share.”