Since its founding in 1969, Instinet has been responsible for many of the industry's truly game-changing innovations. Below are several of its more notable contributions and milestones.
Birth of Electronic Trading
Institutional Networks launches the first automated system for US institutions to trade directly with each other.
The company introduces the first US quote montage; known as the "green screen," it features NYSE-listed stocks.
Direct Market Access
Institutional Networks introduces PSE Scorex to allow institutions to directly access US exchanges; this is believed to be the first DMA system.
Sell Side Comes In
The automated trading system is opened to broker-dealers and Nasdaq market-makers to improve liquidity and attract institutional order flow.
Institutional Networks changes its name to "Instinet," the brand under which the company will forge its future reputation in electronic trading.
Instinet launches the first point-in-time cross in the United States with a nightly after-hours match at the market-closing price.
Reuters Buys Instinet
Reuters Holdings, PLC acquires full ownership of Instinet, having held a minority stake since 1985.
Instinet opens a London office and commences the global expansion of its electronic agency brokerage model.
Instinet OMS is launched, one of the earliest examples of a modern execution management system for equity trading.
New SEC order-handling rules formalize "electronic communication networks" but create competition for Instinet's then-dominant ECN.
As new trading venues fragment the US equity market, Instinet launches Helix, a pioneering smart-routing technology.
Instinet buys rival ECN Island to consolidate its OTC market share; daily trading volume grows to over 700m shares.
Largest OTC Share
With a 38% market share, Inet ECN overtakes Nasdaq as the largest single OTC trading venue in the United States.
Nasdaq agrees to buy Inet ECN; Instinet, the brokerage business, is sold to Silver Lake Partners, a private equity group.
Chi-X Europe Launched
Instinet launches Chi-X Europe to little fanfare; within five years, it would become the largest pan-European trading platform.
Nomura Buys Instinet
Nomura Holdings, Inc. buys Instinet and operates the firm as a stand-alone brand focused on agency brokerage and electronic trading.
At the height of the financial crisis, Instinet's stable agency model and dependable platform help the firm record its first ever billion-share trading day.
Instinet adds multi-asset capabilities through the purchase of TORC Financial, LLC, a specialist in derivatives trading technologies.
Chi-X Global Spin-Off
After expanding into Australia, Canada and Japan, Chi-X Global's investor ranks are expanded to include a consortium of six firms in addition to Instinet.
Nomura Execution Services Arm
Instinet becomes the trading arm of the Nomura Group, uniquely positioning it among global investment banks by offering execution services on a stand-alone, agency basis.