Andresen Leaves Island ECN --- In Surprise Move, CEO Becomes Top Trader at Bernstein
MATT ANDRESEN, THE 32-year-old chief executive of the electronic trading firm Island ECN, said he is leaving to become head of global trading at Sanford C. Bernstein & Co., the Wall Street firm known primarily for its independent stock research.</br></br>The move surprised some traders, coming less than two weeks after Island, the firm Mr. Andresen helped to build into a trading powerhouse, completed its merger with Instinet Group Inc. As the head of Island and a major advocate of the company's merger with Instinet, Mr. Andresen was widely expected to play a critical role in integrating the two firms and helping them battle for additional market share against the Nasdaq Stock Market and the New York Stock Exchange.</br></br>In 4 p.m. trading on the Nasdaq Stock Market, Instinet was down nearly 13%, or 38 cents, to $2.62.</br></br>By resigning his new position as chief operating officer of Instinet and chief executive of its Island unit, and reporting to Bernstein's Manhattan offices here for his first day today, he leaves that battle to others. Bernstein is a unit of Alliance Capital Management LP.</br></br>In an interview, Mr. Andresen stressed that his decision was based solely on the merits of the new job at Bernstein and that he had no doubts about the prospects of Instinet or his role there. "The ability to have a top position at a firm that is the best in its field, and help bring that company to an even higher level, is an opportunity I can't resist," he said. "The hardest thing [was] giving up the opportunity to continue to work with," among others, Instinet Chief Executive Ed Nicoll and Will Sterling, who ran Island's technical operations.