Reuters' impending sale of its 63% stake in Instinet, the electronic communications network and brokerage, could spark a scramble among US exchanges for electronic trading venues, according to traders.

Last week, Reuters said it was considering selling its stake in Instinet, estimated to be worth between $2bn (€1.5bn) and $2.5bn. It said: "Strategic alternatives are being considered by Reuters and Instinet, including a possible sale, merger or other business combination or corporate transaction." Instinet, whose chief executive is Ed Nicoll, declined to comment. Reuters and its advisers, which are understood to include Morgan Stanley, have plenty of potential bidders for Instinet. However, it is unlikely that the business will be sold as a single entity.