york ny united states key people jonathan kellner ceo frank freitas coo jonathan kellner regional head americas shaun bramham regional head asia pacific richard parsons regional head emea parent nomura holdings website http www.instinet.com instinet is an institutional agency only broker that also serves as the independent equity trading arm of its parent nomura group . it executes trades for asset management firms hedge funds insurance companies mutual funds and pension funds . headquartered in new york the company provides sales trading services and trading technologies such as the newport ems algorithms trade cost analytics commission management independent research and dark pools of liquidity . instinet is best known as one of the first off exchange trading alternatives with its green screen terminals prevalent in the 1980s and 1990s and more recently as the founder of chi x europe and chi x global . according to industry research group markit in 2015 instinet was the 3rd largest cash equities broker in europe . 1 contents 1 history 1.1 early history 1.2 reuters acquisition 1.3 alternative trading systems regulations 1.4 public listing 1.5 nomura acquisition 2 history 3 references 4 external links history edit early history edit instinet was founded by jerome m. pustilnik and herbert r. behrens and was incorporated in 1967 as institutional networks corp. the founders aimed to compete with the new york stock exchange by means of computer links between major institutions such as banks mutual funds and insurance companies with no delays or intervening specialists . 2 through the instinet system which went live in december 1969 the company provided computer services and a communications network for the automated buying and selling of equity securities on an anonymous confidential basis . uptake of the platform was slow through the 1970s and in 1983 instinet turned to william a. bill lupien a former pacific stock exchange specialist to run the company . lupien decided to market the system more aggressively to the broker community rather than focus exclusively on the buyside as his predecessors had . to expand its market lupien brought on board fredric w. rittereiser formerly of troster singer and the sherwood group as president and chief operating officer 3 and david n. rosensaft as vice president later svp of new products development . 4 5 together they successfully introduced many innovations which made instinet an integral tool for traders on both the buy and sell sides of the market . reuters acquisition edit as a result of lupien s refocusing of instinet which the business was renamed in 1985 the firm grew rapidly in the mid 1980s . during the crash of 1987 electronic trading system allowed trading when brokers and market makers were unwilling to answer their phones during the free fall . citation needed reuters which in 1985 had acquired a portion of the firm acquired the entire business in may 1987 though under the deal instinet would remain an independent new york based subsidiary . lupien and then coo murray finebaum would resign shortly thereafter . 6 alternative trading systems regulations edit under reuters the instinet platform continued to grow through the late 1980s and into the early 1990s . by the time that the u.s. securities and exchange commission introduced the order handling rules and alternative trading systems ats regulation in the late 1990s instinet was the dominant electronic communication network . however these rules also gave rise to new competitors some of whom employed new pricing schemes . by the early 2000s these competitors helped by missteps at instinet that included rapid expansion over spending and slow uptake of technology had managed to erode the firm s market share . 7 as a result instinet in 2002 merged with the island ecn renaming the island technology platform inet . 8 public listing edit reuters went on to ipo instinet in 2001 9 keeping a 62 % ownership stake . it would hold this until the 2005 acquisition of instinet by nasdaq in 2005 in which nasdaq retained the inet ecn and subsequently sold the agency brokerage business to silver lake partners . 10 nomura acquisition edit in february 2007 nomura purchased the firm from silver lake for a reported 1.2 billion . 11 instinet is today operated as an independent subsidiary of nomura and run by ceo fumiki kondo . in december 2009 in commemoration of its 40th anniversary instinet worked with the make a wish foundation to grant wishes to 40 children with life threatening illnesses . 12 in may 2012 nomura announced that it would transfer electronic trading in the united states to instinet with the goal of eventually making it the electronic trading arm for all of nomura . 13 however in september 2012 nomura announced that it would instead make instinet its execution services cash program and electronic trading arm in all markets globally excluding japan . 14 history edit instinet is credited by whom with several firsts in electronic trading . 15 in addition to launching one of the first electronic trading platforms in 1969 instinet developed 1980 first direct market access system 1986 first after market crossing system 16 1993 instinet oms one of the first modern execution management system ems platforms 1999 instinet helix one of the first market routing platforms 2007 chi x europe the first and largest european multilateral trading facility which in 2011 was acquired by bats global markets 2008 chi x global operator of chi x australia chi x canada and chi x japan which is now owned by a consortium of financial institutions including instinet ; in 2015 nasdaq announced acquisition of chi x canada from chi x global references edit 2015 h1 european cash equity and etf broker rankings pdf . markit group limited . retrieved 11 november 2014 . computer net to eliminate broker commissions eyed . march 1969 . retrieved 2010 09 08 . fredric rittereiser founder and chairman . ivy schmerkin june 1990 . personalities . wall street computer review . transvik black box exchange feels like the real thing . 1 12 . trading systems technology . december 7 1987 . reuters announces resignations at instinet . december 1987 . retrieved 2010 09 08 . back from the brink . december 2002 . retrieved 2010 09 08 . erin joyce june 10 2002 . instinet acquires island ecn . internetnews.com . lewis mark april 2001 . reuters gambles with instinet ipo . forbes . retrieved 2010 09 08 . nasdaq completes acquisition of inet . december 2005 . retrieved 2010 09 08 . nomura to buy instinet . november 2006 . retrieved 2010 09 08 . instinet 40 years and counting . instinet . december 2009 . retrieved 2010 09 08 . himaras eleni 15 may 2012 . nomura will transfer electronic trading in u.s. to instinet unit . bloomberg . retrieved 18 july 2012 . price michelle 7 september 2012 . nomura s instinet move is overdue but makes good sense . financial news . instinet corporate timeline . retrieved 2010 09 08 . instinet celebrates 20th anniversary of industry s first crossing system pdf . december 2006 . retrieved 2010 09 08 . external links edit instinet incorporated retrieved from https en.wikipedia.org w index.php title instinet & oldid 741764787 categories computer networkingstock marketsilver lake partners companiesnomuracompanies established in 1967hidden categories all articles with unsourced statementsarticles with unsourced statements from september 2012articles with specifically marked weasel worded phrases from september 2012 navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia store interaction helpabout wikipediacommunity portalrecent changescontact page tools what links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this page print export 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