EXHIBIT 99.1
For immediate release
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Investor Relations: Media Relations:
John Pitt Calvin Mitchell
Instinet Group Incorporated Instinet Group Incorporated
212 310 7481 212 310 7520
john.pitt@instinet.com calvin.mitchell@instinet.com
INSTINET ANNOUNCES AUGUST 2002
U.S. EQUITY SHARE VOLUME AND MARKET SHARE
RELEASES AVERAGE NET EQUITY TRANSACTION FEE
REVENUE PER U.S. EQUITY SHARE VOLUME
New York, September 11, 2002 - Instinet Group Incorporated (Nasdaq: INET)
announced today that its U.S. equity share volume in August 2002 totaled 7,489
million shares. This compares to 10,320 million shares in July 2002 and 5,039
million shares in August 2001.
Instinet's U.S. equity share volume in August comprised 6,429 million shares of
Nasdaq-listed stocks and 1,060 million shares of exchange-listed stocks.
Instinet's estimated total U.S. equity market share for August 2002 was 10.3%.
Estimated share of Nasdaq-listed volume was 19.3%, and of exchange-listed volume
was 2.7%.
______U.S. Equity Share Volume and Estimated Market Share_______
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Share Volume (mln shares) Market Share (%)**
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Nasdaq- Exchange- Nasdaq- Exchange-
Month # trade days listed* listed Total U.S. listed listed Total U.S.
- ---------- ----------------- ------------------------------------------------- ------------------------------------------------
Aug-02 22 6,429 1,060 7,489 19.3 2.7 10.3
Jul-02 22 8,841 1,479 10,320 18.7 2.8 10.3
Aug-01 23 4,218 821 5,039 12.9 3.0 8.4
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* For a description of how we calculate our Nasdaq volumes, see "Management's
Discussion and Analysis of Financial Condition and Results of Operations-Key
Statistical Information-Nasdaq Volume Calculations" in our Annual Report on Form
10-K for the fiscal year ended December 31, 2001.
** This market share information is subject to change when Nasdaq posts its
final volume statistics.
Disclosure of Average Net Equity Transaction Fee Revenue per U.S. Equity Share
Volume
Beginning with this release, Instinet will disclose each month its average net
equity transaction fee revenue per U.S. share. This information, which
represents our average customer pricing in U.S. equities, will be disclosed in
the monthly release in which Instinet also discloses its U.S. equity share
volume and market share figures. This information is also available on the
Company's website at www.instinet.com.
Net equity transaction fee revenue is presented net of "Soft Dollar and
Commission Recapture" and "Broker-Dealer Rebate" expenses.*** For convenience,
the table immediately below shows Instinet's average net equity revenue per U.S.
share for each month between January 1999 and August 2002.
Average Net Equity Revenue per U.S. Share
(U.S. Cents per side per share)
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2002 2001 2000 1999
January 0.59 0.67 0.78 0.86
February 0.55 0.65 0.77 0.87
March 0.51 0.63 0.80 0.86
April 0.42 0.62 0.75 0.84
May 0.36 0.64 0.76 0.89
June 0.33 0.66 0.77 0.90
July 0.26 0.67 0.77 0.87
August 0.24 0.71 0.76 0.87
September 0.69 0.75 0.83
October 0.62 0.69 0.84
November 0.62 0.70 0.83
December 0.60 0.67 0.81
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*** The required accounting for our soft dollar and commission recapture
businesses requires us to record transaction fee revenues on a gross basis,
inclusive of revenue which is associated with our soft dollar and commission
recapture expenses and broker dealer rebates.
Instinet has experienced significant seasonality in its business, and
period-to-period comparisons of operating results are not necessarily
meaningful, nor are the results for any period necessarily indicative of results
for any future period.
About Instinet
Instinet, through affiliates, is the largest global electronic agency securities
broker and has been providing investors with electronic trading solutions for
more than 30 years. Our services enable buyers and sellers worldwide to trade
securities directly and anonymously with each other, have the opportunity to
gain price improvement for their trades and lower their overall trading costs.
Through our electronic platforms, our customers also can access over 40
securities markets throughout the world, including Nasdaq, the NYSE and stock
exchanges in Frankfurt, Hong Kong, London, Paris, Sydney, Tokyo, Toronto and
Zurich. We also provide our customers with access to research generated by us
and by third parties, as well as various informational and decision-making
tools. Unlike most traditional broker-dealers, we act solely as an agent for our
customers and do not trade securities for our own account or maintain
inventories of securities for sale. For more information, please go to
www.instinet.com.
# # #
This press release is for information purposes only and is not intended as an
offer or solicitation with respect to the purchase or sale of any security.
While Instinet believes the information contained herein is reliable, we do not
guarantee its accuracy, and it may be incomplete or condensed. Monthly data is
preliminary and may not sum to quarterly data subsequently released by Instinet.
Instinet undertakes no obligation to update publicly any of the information
contained herein, in light of new information or future events.
(C) 2002 Instinet Corporation and its affiliated companies. Member NASD/SIPC and
a subsidiary of Instinet Group Incorporated. All rights reserved. INSTINET and
the INSTINET Mark are service marks in the United States and in other countries
throughout the world.
This news release may be deemed to include forward-looking statements relating
to Instinet. Certain important factors that could cause actual results to differ
materially from those disclosed in such forward-looking statements are described
in Instinet's Annual Report on Form 10-K for the fiscal year ended December 31,
2001, under the heading `Certain Factors that May Affect Our Business', and
other documents filed with the SEC and available on the Company's web site.
Certain information regarding Nasdaq trading volumes is also included in the
Form 10-K and on the Company's web site.