ECN Ready to Pick Up Bulletin Board Stocks

Traders Magazine, February, 2003 by John A. Byrne

A brawl is erupting over Bulletin Board trading.

Nasdaq, which is awaiting regulatory approval to turn the OTC Bulletin Board into a market with strict listing standards, is squaring off against Archipelago.

A 12-year headstart running the OTC Bulletin Board means Nasdaq handles most bulletin board transactions for dealers. That volume is hovering around 500,000 trades monthly. In the other corner, Archipelago - which has cut into Nasdaq National and SmallCap volume - says it could siphon order flow off the OTC Bulletin Board. Archipelago has its own bulletin board trading platform, purchased from the ATS GlobeNet. That was recently activated through its affiliated Archipelago ECN but it has minimal volume.

Nasdaq, however, does not expect to launch its new...

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