Trading briefs

GREENWICH, Conn. — More than half of all equity trading volume for the fiscal year ended June 30 among large trading institutions involved portfolio trading, according to a Greenwich Associates survey.

Institutions surveyed in Greenwich’s 2008 Portfolio Trading report increased the share of their total equity trading volume to more than 50% for the year, up from 45% for the previous year. That growth resulted in a 25% expansion in overall portfolio trading volume generated by these institutions — bringing the total for the value of shares traded to more than $1.75 trillion for the year.

Goldman Sachs and Lehman Brothers benefited the most from that expansion of program trading, the survey found.

An increase in international trades spurred the increase in equity volume, making up almost 30% of portfolio trading volume for the year ended June 30, up from less than 25% the previous year. Slightly more than half of non-U.S. volume involved United Kingdom and continental Europe trades.

“In terms of market share, Goldman Sachs is clearly ahead of Lehman Brothers at the top,” Greenwich Associates consultant Jay Bennett said in a news release. “Ranking next is a group that includes Merrill Lynch and the one non-investment bank, ITG, followed by Morgan Stanley, Citi and Credit Suisse.”

Greenwich conducted interviews with the 124 institutions between December and February.

NEW YORK — Brokers on the floor of the New York Stock Exchange soon will use algorithms to better compete against fully electronic markets, NYSE spokesman Ray Pellecchia said.

“We are beginning to roll out algorithms for floor brokers. The rollout has begun and will continue in the coming weeks,” Mr. Pellecchia said.

The algorithms are provided by Pragma Financial Systems, a quantitative financial technology firm.

Floor brokers will use Pragma’s TradeEngine, a high-frequency trading platform that will interact with the NYSE hybrid trading model, which combines floor and electronic book operations.

NEW YORK — Nasdaq OMX Group Inc. on July 24 closed its acquisition of the Philadelphia Stock Exchange, the third-largest U.S. options market, said Nasdaq OMX spokeswoman Silvia Davi.

The Philadelphia exchange will be renamed Nasdaq OMX PHLX and Meyer “Sandy” Frucher, PHLX chairman and CEO, will become vice chairman at Nasdaq OMX, a new position.

Nasdaq entered options trading in March with the launch of its electronic Nasdaq Options Market. NOM and the PHLX, which operates a floor, will operate independently after the acquisition.