Graph 2 compares the percentage market share of total Nasdaq trading by each of the six major ECNs. It is important to note that Island will match it subscribers orders only against the orders of other subscribers. This is known in the industry as internally matching an order, as opposed to routing out an order by sending it to another ECN or market maker. Island never routes out orders to other ECNs or non-subscribers for execution. The firm s speed and reliability may be compromised when it is forced to rely on other market centers.
Industry analysts realize the value of internally matching shares.
Graph 1 compares the percentage market share of each of the six major ECNs in total trades of Nasdaq securities. QQQ is frequently the most actively traded security on Island, averaging over 10 million single-counted shares per day during April 2001.The chart below demonstrates this growth by showing Island's continually growing market share of total trading since October 2000. Despite steep declines in the value of the major U.S. equity markets in 2000, Island continued its strong and robust growth. The graph below shows that Island s advantages were more important than ever during recent market declines. During 2001, Island constantly set, then exceeded, internal company records.