Nasdaq, NYSE feeling the heat?

Traders notes that the Nasdaq is feeling a bit of heat as its market share declines. The main competitors are a varied group. On one hand, BATS Exchange and Direct Edge have been slowing eating away at its market share. Direct Edge, an ECN, has been aggressively taking market share from the NYSE as well.

More recently, dark pools have proven to be formidable competitors. Nasdaq officials say that dark pools and internalized execution venues accounted for about 25 percent of Nasdaq-listed stocks in March, up from 21 percent at the end of 2008. In NYSE-listed stocks, dark pools account for 25 percent of volume this month, versus 18 percent at the end of last year. Starting in April, the Nasdaq will cut some fees and pay liquidity takers on its Boston exchange. As for the NYSE, it has also decided to pay for liquidity, something it has never done before. It will boost its take fee from liquidity removers to cover the rebate. 

For more:
- here's the article
- here's an article on the NYSE 

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