Nasdaq loses market share in tough summer

Nasdaq has seen its market share fall back since it suffered a three-hour downtime in mid-August, according to figures from Thomson Reuters Equity Market Share Reporter.

Nasdaq has seen its market share fall back since it suffered a three-hour downtime in mid-August, according to figures from Thomson Reuters Equity Market Share Reporter.

In September, the main Nasdaq exchange accounted for 16.41% of the US market’s total turnover, down from 16.74% in August and 17.07% in July.

The fall in Nasdaq volumes comes after the exchange suffered significant reputation damage in July when its market went down for three hours due to a problem with its securities information processor. The difficulties, coupled with last year’s problematic Facebook IPO have led to rumours that social networking website Twitter may choose to list on the New York Stock Exchange in its hotly anticipated IPO.

Looking across the whole market, total volume increased marginally between August and September, up 0.2% to just over US$4 trillion.

Direct Edge saw its market share fall last month after announcing over the summer that it plans to merge with BATS. Direct Edge made up 10.75% of market volume in September, down from 11.29% in August. Over the same period, BATS grew its market share, from 10.81% to 10.91%, though this does not make up for the loss of Direct Edge market share.

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