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Nasdaq acquires LeveL Markets, adding a top U.S. off-exchange trading venue

Nasdaq acquires LeveL Markets, adding a top U.S. off-exchange trading venue

Money Moves

The deal takes Nasdaq from minority investor to owner of the third-largest alternative trading system in the United States.

Today: LeveL Markets operates as a Nasdaq-owned ATS

Overview

Updated 50 minutes ago

Nasdaq agreed on Aug. 11, 2026, to buy LeveL Markets, the third-largest alternative trading system in the United States. The deal closed Oct. 15, putting a venue that trades hundreds of millions of shares a day inside an exchange company.

LeveL reaches more than 2,500 buy-side and sell-side clients through 15 order and execution management integrations. Sapinover Research describes that as distribution into sell-side routing tables, an asset an exchange cannot create by filing a rule.

Why it matters

An exchange operator now owns one of the largest venues for the off-exchange trading that happens away from its own order books.

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Key Indicators

56
LeveL average daily volume growth, 2025
Year-over-year growth reported by Nasdaq.
2,500+
Clients reached
Buy-side and sell-side clients reached through more than 15 order and execution management integrations.
7,000+
Symbols executed daily
Trading coverage on the LeveL platform.
3rd
Rank among U.S. ATSs by volume
LeveL is the third-largest alternative trading system in the U.S. by trading volume.
7.6–8.1
LeveL share of total ATS notional
Monthly range across seven consecutive months, per FINRA Rule 4552 data cited by Sapinover Research.
14.7
Nasdaq exchange share of U.S. equity volume
Combined share of Nasdaq's three exchanges in consolidated U.S. equity volume, per Sapinover Research.

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People Involved

RC
Roland Chai
Head of Digital Liquidity Networks, Nasdaq
Leading the unit that now houses LeveL Markets
NK
Nikolaj Kosakewitsch
Head of European Market Services, Nasdaq
Took over the European role as Chai moved to Digital Liquidity Networks

Organizations Involved

The Nasdaq Stock Market LLC
The Nasdaq Stock Market LLC
Stock exchange
Buyer of LeveL Markets

Operates three U.S. stock exchanges and is expanding into off-exchange execution and digital-asset infrastructure.
LeveL Markets
LeveL Markets
Alternative trading system
Acquired by Nasdaq; still a FINRA-regulated ATS

One of the largest U.S. off-exchange equity execution venues, serving institutional buyers and sellers.
DL
Digital Liquidity Networks
Nasdaq division
New organization housing LeveL Markets

Nasdaq unit that combines liquidity platforms, tokenization tools, and digital-asset technology.
Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
Self-regulatory organization
Continues to oversee LeveL Markets as a registered ATS

Oversees broker-dealers and alternative trading systems in the U.S. securities industry.

Timeline

August 2021 January 2027

9 events Latest: Today
Tap a bar to jump to that date

  1. Conditional relief for 24X trading takes effect

    Upcoming Scheduled

    A regulatory backstop for overnight trading begins.

  2. Extended SIP hours scheduled to go live

    Upcoming Scheduled

    Market data infrastructure moves to a longer trading day.

  3. LeveL Markets operates as a Nasdaq-owned ATS

    Today Status

    The venue keeps its own management team and structural separateness inside Digital Liquidity Networks.

  4. Nasdaq completes the acquisition

    Acquisition

    LeveL Markets joins the Digital Liquidity Networks organization as a FINRA-regulated ATS.

  5. Comment period closes on rescinding Reg NMS Rules 611 and 610(e)

    Rule change

    The order protection rule that gives exchange quotes legal priority is under review.

  6. Nasdaq signs definitive agreement to buy LeveL Markets

    Acquisition

    Nasdaq agrees to acquire all equity interests; terms are not disclosed.

  7. LeveL average daily volume grows 56 percent

    Market data

    Year-over-year growth makes LeveL the third-largest U.S. ATS by volume.

  8. LeveL Markets merges with Luminex

    Corporate

    The combined venue serves more than 300 institutional buy-side firms.

  9. Nasdaq takes minority stake in LeveL Markets

    Investment

    Nasdaq makes a strategic minority investment as part of a broader always-on markets strategy.

Scenarios

1

LeveL Markets holds its share of ATS volume under Nasdaq

Likely Resolves by Q2 2027

Discussed by: Sapinover Research

LeveL's share of all ATS notional stayed between 7.62 and 8.12 percent across seven months, the second-steadiest record in the field. That stability came from broker-neutral routing relationships rather than captive flow from a parent broker. Nasdaq's test is whether those relationships survive new ownership and integration.

2

Nasdaq extends LeveL Markets into 24-hour trading

Possible Resolves by Q2 2027

Discussed by: Ledger Insights and Nasdaq's Roland Chai

Nasdaq framed the purchase around always-on markets. An ATS can change its session hours by amending Form ATS-N, a faster route than the public rule-filing process a national exchange must follow. Extended market-data hours start Dec. 6 and conditional overnight relief begins in January 2027.

3

SEC rescinds the order protection rule

Uncertain Resolves by End of 2027

Discussed by: Sapinover Research

The comment file on rescinding Regulation NMS Rules 611 and 610(e) closed Aug. 17, 2026. Sapinover Research reads the timing of Nasdaq's purchase as a hedge: if Rule 611 falls, exchanges lose the legal privilege attached to their displayed quotes. The SEC has not said whether or when it will act.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2005

Regulation NMS (2005)

The Securities and Exchange Commission adopted Regulation NMS, including Rule 611, which requires trading centers to avoid trading through protected quotes on exchanges. The rule made displayed exchange quotes legally special and set the terms for how off-exchange venues interact with lit markets.

Then

Exchanges and electronic venues rebuilt their routing systems around the rule.

Now

Alternative trading systems grew into a large share of U.S. equity volume under that framework.

Why this matters now

The SEC is now considering rescinding Rule 611, which would change the value of both exchange status and ATS distribution.

2005

Nasdaq buys Instinet's INET (2005)

Nasdaq acquired Instinet's INET electronic trading platform and combined it with its Brut venue, giving the exchange a larger role in screen-based and off-exchange execution.

Then

Nasdaq consolidated electronic trading volume under its own roof.

Now

The purchase helped Nasdaq compete as equity trading moved from floors to screens.

Why this matters now

It set the template Nasdaq is repeating: buy the venue where orders are routed, not only the exchange where they execute.

2005–2006

NYSE merges with Archipelago (2005–2006)

The New York Stock Exchange merged with Archipelago, an electronic trading network, and became a public company in the process.

Then

The combined group folded screen-based trading into the NYSE's operations.

Now

The deal marked the exchange industry's shift from floor trading to electronic venues.

Why this matters now

Exchanges buying electronic venues has a two-decade record; Nasdaq's LeveL purchase follows that pattern.

Sources

(7)
+2
Nasdaq Quartz Sapinover Research Cointelegraph Ledger Insights Nasdaq Nasdaq