Nasdaq announced it has signed a definitive agreement to acquire LeveL Markets, a U.S. alternative trading system, according to the announcement made public on August 11. The deal terms remain undisclosed.
LeveL Markets operates an ATS with more than 2,500 clients and handles equities trading outside the lit exchanges. The acquisition expands Nasdaq's footprint in off-exchange venues at a time when alternative trading systems have grown to handle roughly 30 percent of U.S. equity volume in recent years. Nasdaq already operates several ATSs including Nasdaq ATS and has long invested in dark pool and private trading infrastructure.
Alternative trading systems have become a focal point for exchange operators seeking revenue diversification. CME Group acquired EJournal, a post-trade analytics firm, in 2023. Intercontinental Exchange holds the Trayport platform for energy trading. The SEC has been scrutinizing ATS operations and order routing practices since 2022, with particular attention to conflicts of interest when exchange operators also control the venues where orders are placed.
LeveL Markets competes with other independent ATS providers and with in-house dark pools operated by major investment banks and brokerages. The firm has grown its client base significantly in the past five years, positioning itself as an alternative to both exchange-owned and bank-owned trading venues. Its client list spans hedge funds, asset managers and broker-dealers.
Nasdaq's acquisition of LeveL Markets follows its broader strategy of consolidating equity trading infrastructure. The exchange operator reported $1.04 billion in net revenues for the first half of 2026, with market technology and trading services accounting for a material portion of that total.
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. Nasdaq said the deal will be accretive to non-GAAP earnings within the first full year of ownership. A regulatory filing detailing the purchase price and deal structure has not yet been made public.
The number of active alternative trading systems subject to SEC oversight has remained relatively stable at around 80 to 90 venues over the past decade, even as the market share of off-exchange trading has concentrated among the largest operators. If Nasdaq closes this acquisition on schedule, it will have consolidated another significant independent ATS into its portfolio.
