From Nasdaq: 2025-04-03 18:15:00

In the U.S., the stock market is experiencing increasing fragmentation, with 16 equity exchanges, 30 ATS venues, and over 100 brokers competing for trading services. The DOJ uses the Herfindahl-Hirschman Index (HHI) to measure market concentration, with an HHI score above 1800 considered uncompetitive. The U.S. equity market has an HHI score of 874, indicating high fragmentation and competition. Despite concerns about market competitiveness, recent data shows the industry is highly competitive. New exchanges are entering the market, further increasing competition and lowering the HHI score, raising questions about how to balance competition with fragmentation.



Read more at Nasdaq: Equity Markets Are Highly Competitive