"Since we announced this merger, the feedback we have received from our clients has endorsed the Archipelago-REDIBook union and the efficiencies this consolidated system brings to the marketplace," Archipelago CEO Jerry Putnam said. "Such validation makes us more confident than ever that we will be a strong competitor against the traditional exchanges and other ECNs, continuing to drive innovation and change in the markets."
The integration of the order books and trading systems Archipelago and REDIBook currently operate is scheduled to begin late in the second quarter. A gradual migration from two order books to a single book is expected to be completed in the third quarter.
The merger will add significant liquidity to Archipelago as the company prepares to launch the Archipelago Exchange (ArcaEx) in late March. In January 2002 Archipelago and REDIBook executed a combined daily average volume of approximately 475 million Nasdaq and listed shares. Both Archipelago and REDIBook have, as measured by percentage volume increase, been the fastest growing ECNs. Based on current volumes, the combined entity will contend for the top spot among ECNs.
