Nasdaq, the US stock market, today confirmed that it is to buy Instinet Group, the brokerage firm, for $1.9bn (€1.5bn) from Reuters. The news came as Nasdaq reported an almost three-fold rise in net profits in the three months to March 31.

Nasdaq, headed by chief executive Bob Greifeld, plans to keep Instinet's electronic communications network business while concurrently selling off the group's institutional broker division to private equity firm Silver Lake Partners. The Bank of New York will take over a third division, the Lynch, Jones & Ryan brokerage unit.