Instinet

AAA

DEFINITION of 'Instinet'

A global financial securities company that operates an electronic securities order matching (trading) and information system that allows members (primarily professional traders and investors) to display bids and offer quotes for stocks and to transact between themselves. As a global securities broker, Instinet enables institutional customers to trade securities in global markets.

INVESTOPEDIA EXPLAINS 'Instinet'

Instinet was founded in 1967 as Institutional Networks. It is Wall Street's oldest electronic communications network (ECN), and after it was acquired by Reuters Group in 1987, it and other ECNs evolved into major threats to the established stock exchanges. The company split its ECN and its brokerage business into Inet ECN and Instinet, respectively, in 2003. NASDAQ then acquired Inet ECN in 2005 and Instinet was sold to a private equity firm. In addition to sales trading, Instinet provides front-end technology, algorithmic trading, liquidity sourcing, independent research, commission management and transaction analysis.

RELATED TERMS
  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Reuters

    A global information provider headquartered in London, England, ...
  3. Extended Trading

    Trading conducted on electronic exchanges either after regular ...
  4. Hybrid Market

    A securities exchange that facilitates trading through a blend ...
  5. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
Related Articles
  1. Professionals

    Wall Street Writers: A Behind-The-Scenes Career

    Regulators, sales people and clients all look to communications professionals to help them navigate the markets.
  2. Investing Basics

    Why You Should Understand The Stock Market

    Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why.
  3. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  4. Options & Futures

    The Kingpin Of Wall Street: J.P. Morgan

    From robber baron to the hero of the Panic of 1907, this man helped shape Wall Street as we know it.
  5. Budgeting

    I'm new to this. Can I sell or buy stock by myself?

    In order to buy stocks, you need the assistance of a stock broker since you cannot just phone up a company and ask to buy their shares yourself. For inexperienced investors, there are two basic ...
  6. Options & Futures

    Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.
  7. Mutual Funds & ETFs

    Are there publicly traded hedge funds?

    See why a privately arranged hedge fund may decide to take its fund public, and how the investing public at large can gain exposure to hedge fund value.
  8. Mutual Funds & ETFs

    What does a hedge fund do?

    Read how hedge funds differ from other investment vehicles and how their investment strategies make them unique and potentially risky.
  9. Fundamental Analysis

    What is the difference between market capitalization and equity?

    Understand the difference between market capitalization and equity, two primary measurements used to evaluate the worth of a company.
  10. Fundamental Analysis

    What is the first day of the first quarter?

    The first day of companies' fiscal years varies based on industry cycles. The timing is especially important because annual reports can have unexpected effects.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center