Records in Matched and Handled Market Share and ELP Volume
JERSEY CITY, N.J., Jan. 12, 2009 (GLOBE NEWSWIRE) -- Direct Edge announced today statistical information regarding its volume for December 2008. Direct Edge reported 1.1 billion shares handled per day in December, representing a 108% year-over-year increase. Direct Edge's handled market share in all U.S. equity securities was 12.26% for the month, with a 6.93% matched market share -- both record highs. For volume handled in the month of December, Direct Edge was the third largest U.S. cash equities marketplace.
"2008 was a year of phenomenal growth for Direct Edge," said William O'Brien, Chief Executive Officer of Direct Edge. "Our handled market share is up more than 40% from last December and our matched market share has increased by over 60%. We look forward to continued growth as we follow our path to exchange status."
The table below shows Direct Edge's market share broken out by listing market:
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Listing Market Handled Matched
Market Share Market Share
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NYSE 13.49% 7.10%
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NYSE Arca, NYSE Alternext 8.87% 5.55%
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NASDAQ 12.14% 7.83%
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The number of shares executed in Direct Edge's Enhanced Liquidity Provider (ELP) Program for December was a record 169.5 million (ADV). The ADV for MidPoint Match(sm) was 8.5 million.
All volume and market share statistics reflect single-counted data across all Direct Edge trading destinations -- EDGA, EDGX, and the ISE Stock Exchange. December is the first month the ISE Stock Exchange's volume is being included in Direct Edge's overall total. ISE Stock Exchange volume for the entire month is included. Direct Edge took operational control of ISE Stock Exchange on December 23, 2008. For a detailed explanation of Direct Edge's volume and market share terminology and methodology, please see http://www.directedge.com/marketshare_terminology.aspx
About Direct Edge
Direct Edge offers the next generation of displayed markets. With U.S. cash equities volume routinely exceeding 1 billion shares per day, Direct Edge uses multiple ECN and exchange platforms and unique order types to match complementary forms of liquidity based on sensitivity to transaction cost, fill rate, fill speed, and contra-side sophistication, while maintaining high execution quality and low latencies. Headquartered in Jersey City, N.J., Direct Edge is owned by a consortium that includes the International Securities Exchange, Knight Capital Group, Inc., Citadel Derivatives Group, The Goldman Sachs Group, and J.P. Morgan. More information about Direct Edge is available at http://www.directedge.com. Everybody Needs Some Edge.
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from Traders magazine:
By Nina Mehta January 16, 2009
In response to demand from retail brokerages and their customers, Direct Edge ECN next week will expand its after-hours trading session. It will offer trading from 8 a.m. until 8 p.m., extending its after-hours session by three hours.
"The suggestion that we extend our trading hours came mostly from retail and online brokers," said Bryan Harkins, head of sales and strategy at Direct Edge. "Their customers like to have their limit orders displayed over a longer period of time." He declined to say which brokers encouraged the ECN to extend its post-close session.
After-hours and pre-open traders trade mainly on Nasdaq and NYSE Arca. "We will win flow based on our pricing, service, liquidity, technology and the relationships we have," Harkins said. Some National Market System rules don't apply to non-market hours, but Direct Edge said it would route out to better prices at other market centers if it doesn't have the best price. Brokers' best execution obligations apply around the clock.
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an interview with Direct Edge CEO, from Marketsmediaonline:
Bill O'Brien, CEO of Direct Edge
Markets Media: How did your company perform in market turmoil of 2008 and what did it learn from the challenges of last year? 
Bill O'Brien: 2008 was a year of incredible turmoil and incredible transition. It was an incredible opportunity for Direct Edge. I really feel like this year was our coming out year. We established ourselves as one of four major market centers. If you look at matched market-share and where everybody is in January versus December, Direct Edge has grown the most. We're definitely the fastest growing major market. Throughout the course of 2008, we layered on significant growth with significant volume in these turbulent times. It really was quite a ride.
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