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system, which still used human traders to match buy and sell orders, matching on Island was fully automated. Island published an electronic feed called "ITCH" of all trades in the system, and used a protocol called "OUCH" to place orders. The data feed was accessible for free, an innovation over the
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firm. Island grew quickly, accounting for almost half of all trades on Nasdaq's SelectNet system by late 1996, and handling $ 22.1 billion of transactions between July and
September of that year. By 1998, it had become the second-largest ECN, after Instinet, with 20% of the market.
46:). Citron's background was in trading and Levine had experience with software development. While at Datek, they worked together to develop a software program called Watcher. Watcher was one of the first programs to provide real-time quote and electronic order capabilities for trading
54:(SOES). In 1995, Watcher was augmented with a system called "Jump Trades" that let users of Watcher skip the Nasdaq intermediary and trade directly with each other.
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In
October 1999, Citron was forced out at the behest of president Ed Nicoll, who was worried that Citron's connections to Datek—then under investigation by the
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tightly controlled data for traditional exchanges, and trading fees were significantly lower than on Nasdaq.
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Dark Pools: High-Speed
Traders, A.I. Bandits, and the Threat to the Global Financial System
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On
February 9, 1996, Levine announced the launch of Island. Unlike the existing
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Prior to Island, Citron and Levine worked together at Datek
Securities (now
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in the United States. Founded in 1996 by Datek
Securities veterans
205:"Instinet Plans to Acquire Island ECN for $ 508 Million in Stock"
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and Joshua Levine, Island executed its first trades in 1997.
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Instinet acquired Island
Exchange in 2002 and renamed the
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124:. Funding Universe
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59:Instinet
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