Direct Edge delays U.S. exchanges launch to July
NEW YORK (Reuters) - Direct Edge, a private U.S. trading venue operator, said on Wednesday it delayed the launch of its two formal exchanges until July to give members a longer connecting and testing period.
Last month, the company said it aimed to launch the exchanges, called EDGA and EDGX, in May. It now accounts for about 10 percent of all U.S. stock trading, having eaten into the market share of traditional venues the New York Stock Exchange and Nasdaq Stock Market in the last few years.
New Jersey-based Direct Edge said the revised timeline would facilitate a smooth transition for traders, and would avoid launching immediately after the scheduled rebalancing of the Russell indexes.
The first stocks will begin trading on July 2, and the migration is expected to be complete around July 20, it said.
Direct Edge is owned by Goldman Sachs Group Inc (GS.N), Knight Capital Group Inc NITE.O, hedge fund Citadel, and the International Securities Exchange, an options market owned by Deutsche Boerse's (DB1Gn.DE) Eurex.
(Reporting by Jonathan Spicer; Editing by Phil Berlowitz)