SunGard says its Brut ECN enjoyed a Nasdaq market share of 11.5 percent in February, up from 8.9 percent in December and January.
Parent SunGard Brokerage Services says the ECN averaged over 220 million shares traded per day for the month – a record. Seven of Brut’s overall top-10 share-volume days occurred in February 2004.
“We believe this success validates Brut’s value proposition as the low-cost execution utility to the trading community,” says Brian Hyndman, president of Brut. He adds that Brut is now reaping the rewards of a new pricing structure introduced in August, and benefiting from a $5 million investment to enhance its technology infrastructure, made after SunGard acquired Brut about 18 months ago.
In addition, with the recent mergers in the ECN space, firms that prefer to rely on two electronic trading platforms are looking for an alternative, and Brut is benefiting from that shift in the competitive landscape, Hyndman adds. “Brut’s position leaves it well equipped to adapt to the changing market structure environment,” he says.
February marks the first full month that Brut passed the 11 percent Nasdaq market share hurdle–more than doubling the 4-percent share it posted at the time of the SunGard acquisition.
“Brut’s aggressive strategy of upgrading its technology while cutting prices has resulted in the impressive growth of our Nasdaq business,” says William O’Brien, chief operating officer of Brut. “Our goals are to see our presence continue to grow, also with respect to our volumes for trading exchange-listed stocks.”
Brut, LLC owns and operates the Brut ECN, an alternative trading system that offers a low-cost execution utility for the trading community without sacrificing technology, execution quality or customer service. Brut offers its customers participation in SuperMontage and the Nasdaq InterMarket for increased liquidity and enhanced order routing capabilities, and allows institutional clients to use the Brut Sponsorship Program to trade electronically while still maintaining their traditional brokerage relationships.