* Exchange operator combines its global data and index
* Follows merging of software and market technology units
earlier in Jan
* Nasdaq's shares at 52-week high
By John McCrank
Jan 29 Nasdaq OMX Group Inc said on
Tuesday it was combining its global data and index businesses as
the trans-Atlantic exchange operator continues to reposition
itself to be a bigger player in technology services, a move
aimed at boosting non-transaction-based revenues.
John Jacobs will head the new global information services
unit, which Nasdaq said will enable it to increase sales through
a clearer focus on new product development. Jacobs was formerly
Nasdaq's head of indexing and chief marketing officer.
"Combining these business areas allows us to better take
advantage of the sweet spot they inherently both share:
distribution of data and the delivery of innovative products
that provide market insight and transparency," Bob Greifeld,
Nasdaq's chief executive, said in a statement.
He said Nasdaq's goal is to become one of the top
information providers in the global financial services industry.
Competitors in that area include SunGard and Fidessa.
Boosting relatively stable technology- and information-based
revenues has become more of a focus in the exchange industry as
equity trading volumes hover around multi-year lows.
Nasdaq, which reports its fourth quarter results on
Thursday, said the global information services unit will
represent around 20 percent of the company's total annual
revenues. For 2011, not including transaction rebates,
brokerage, clearance and exchange fees, Nasdaq had $1.69 billion
Earlier in January, Nasdaq said it would combine its
software and market technology units into a business that will
generate more than $500 million in annual revenue.
The catalyst for the new software-based segment was Nasdaq's
acquisition of Thomson Reuters Corp's investor relations, public
relations and multimedia services units for $390 million in
Nasdaq put Anna Ewing, who headed the New York-based
company's technology business, in charge of that unit, and
appointed Bradley Peterson as global chief information officer,
effective Feb. 6.
Nasdaq's historical and real-time market data currently
reaches 2.5 million financial professionals and individual
investors in 83 countries.
The exchange operator said it has around 7,000 products
based on Nasdaq indexes.
The "combined business unit will enable us to leverage the
recent technology investments and improvements we have made in
these areas to deliver more data and indexes faster, across more
asset classes, and at lower cost than ever before," Jacobs said
As part of the transition, Nasdaq named Jeremy Skule,
formerly head of global marketing and communications, to the
position of chief marketing officer, reporting directly to
Nasdaq's shares were up 0.5 percent at a 52-week high of
$27.91 on Tuesday afternoon.