Moody's believes that Lloyds' improved financial metrics and the resumption of payments on other junior debt instruments support a view that a conversion event for the ECNs
has become less likely and that the ratings of these instruments should be aligned with the normal notching practice for CoCos as set out in our Global Banks methodology.
In 2000, Archipelago reached an agreement with the Pacific Stock Exchange that aimed to vault it out of the ranks of mere ECNs
and make it a full-fledged exchange.
are quite a new phenomenon in the equity markets, they already account for about 30% of total share volume traded on the Nasdaq market .
Given that electronic trading was more efficient in processing transactions, why hadn't ECNs
been able to take more market share away from the New York floor?
Hegarty thinks ECNs
won't consolidate to the point where only the largest survive.
In fact, the Nasdaq owes much of its success attracting and keeping top-drawer firms like Cisco to the electronic trading technology behind ECNs
We believe exchanges and ECNs
will converge in the next three years.