U.S. options markets are on the way to consolidation as New York Stock Exchange expects to take over Archipelago Holdings Inc. and Nasdaq plans a deal with Instinet Group Inc. Archipelago has almost completed the acquisition of the Pacific Exchange’s options business.

At the moment the only options markets that are likely to remain independent entities are the Chicago Board Options Exchange, the American Stock Exchange, the Philadelphia Stock Exchange and two electronic platforms, the Boston Options Exchange and International Securities Exchange.

"It would not be surprising to see the Nasdaq try to enter the fast-growing U.S. options business either through consolidation or applying to the regulators to become an options exchange," said Ed Boyle, vice president of TD Securities.

A Nasdaq spokeswoman said, "The purchase of Instinet will allow us to look at trading other types of asset classes. But Nasdaq is very focused on the equities market."

Even so, if Nasdaq opts to strengthen its position in the options business, it could solidify its business by merging with the Chicago Board Options Exchange or any other industry veteran.