Profile: Nasdaq Inc (NDAQ.O)
30 Nov 2016
Nasdaq, Inc. (Nasdaq), formerly The NASDAQ OMX Group, Inc., incorporated on November 13, 1979, is a holding company. The Company is a provider of trading, clearing, exchange technology, regulatory, securities listing, information and public company services across approximately six continents. The Company manages, operates and provides its products and services through four segments: Market Services, Listing Services, Information Services and Technology Solutions. Its global offerings include trading and clearing across various asset classes, access services, data products, financial indexes, capital formation solutions, corporate solutions and market technology products and services.
The Company's Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading and clearing (FICC), and access and broker services businesses. It operates various exchanges and other marketplace facilities across a range of asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange traded products (ETPs). In addition, in some countries where it operates exchanges, the Company also provides broker services, clearing, settlement and central depository services. Its transaction-based platforms provide market participants with the ability to access, process, display and integrate orders and quotes. The platforms allow the routing and execution of buy and sell orders, as well as the reporting of transactions, providing fee-based revenues.
Nasdaq operates over three options exchanges in the United States, The NASDAQ Options Market, Nasdaq PHLX and Nasdaq BX Options, for the trading of equity options, exchange traded fund (ETF) options, index options and foreign currency options. The Company's options trading platforms provide trading opportunities to retail investors, algorithmic trading firms and market makers. In Europe, Nasdaq Stockholm offers trading in derivatives, such as stock options and futures, index options and futures and fixed-income options and futures. Nasdaq Clearing offers clearing services for fixed-income options and futures, stock options and futures, index options and futures, and interest rate swaps by serving as the central counterparty (CCP). Nasdaq Clearing also operates a clearing service for the resale and repurchase agreement market.
The Company in the United States operates three cash equity exchanges, The NASDAQ Stock Market, Nasdaq BX and Nasdaq PSX. The NASDAQ Stock Market offers liquidity for trading the United States-listed cash equities. The Company's United States cash equity exchanges offer trading of both NASDAQ-listed and non-NASDAQ-listed securities. Market participants include market makers, broker-dealers, alternative trading systems (ATSs) and registered securities exchanges. In Europe, Nasdaq Nordic operates exchanges in Stockholm (Sweden), Copenhagen (Denmark), Helsinki (Finland) and Iceland. The Nordic exchanges offer trading in Nordic securities, such as cash equities and depository receipts, warrants, convertibles, rights, fund units and ETFs. Its platform allows the exchanges to share the same trading system, which enables cross-border trading and settlement, cross membership and a single source for Nordic data products.
The Company's Nasdaq Baltic operates exchanges in Tallinn (Estonia), Riga (Latvia) and Vilnius (Lithuania). Nasdaq owns Nasdaq Tallinn and has an ownership in Nasdaq Vilnius and Nasdaq Riga. In addition, Nasdaq Tallinn owns the central securities depository in Estonia; Nasdaq Riga owns the central securities depository in Latvia, and Nasdaq Helsinki and Nasdaq Vilnius jointly own the central securities depository in Lithuania. It also operates Nasdaq Armenia. The Company's Nasdaq Stockholm is a bond listing venue in the Nordics, with approximately 5,000 listed retail and institutional bonds. In addition, Nasdaq Nordic facilitates the trading and clearing of Nordic fixed income derivatives. The Nasdaq derivatives markets act as the counterparty to both the buyer and seller. The Company's eSpeed, an electronic platform for trading United States Treasuries. The electronic trading platform provides real-time institutional trading of benchmark United States Treasury securities. Through eSpeed, it provides trading access to the United States Treasury securities market with an array of trading instruments. Its Nasdaq NLX is a London-based multilateral trading venue, which offers a range of both short-term interest rate and long-term interest rate euro-and sterling-based listed derivative products. Its NFX is United States-based energy derivatives market. NFX offers cash settled energy derivatives based on key energy benchmarks including oil, natural gas and United States power. Nasdaq Commodities is a brand name for Nasdaq's suite of commodity-related products and services. Nasdaq Commodities' offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services. NASDAQ OMX Oslo ASA, which is authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority, is the commodity derivatives exchange for Nasdaq Commodities.
The Company provides market participants with a range of alternatives for connecting to and accessing its markets for a fee. It offers the NASDAQ Workstation, a browser-based, front-end interface that allows market participants to view data and enter orders, quotes and trade reports. In addition, it offers a range of add-on compliance tools to help firms comply with regulatory requirements. It provides co-location services to market participants, whereby firms may lease cabinet space and power to house their own equipment and servers within its data center. Additionally, it offers a range of wireless connectivity routes between select data centers using millimeter wave and microwave technology. Its broker services operations offer technology and securities administration solutions to financial participants in the Nordic market. Broker services provide services through a registered securities company that is regulated by the Swedish Financial Supervisory Authority (SFSA). It offers customer and account registration, business registration, clearing and settlement, corporate action handling for reconciliations and reporting to authorities. Available services also include direct settlement with the Nordic central securities depositories, real-time updating and communication via the Society for Worldwide Interbank Financial Telecommunication to deposit banks.
The Company operates a range of listing platforms around the world to provide various global capital raising solutions for private and public companies. Companies listed on its markets represent an array of industries, including healthcare, consumer products, telecommunication services, information technology, financial services, industrials and energy, among others. Its main listing markets are The NASDAQ Stock Market, the Nasdaq Nordic and Nasdaq Baltic exchanges. The NASDAQ Stock Market has over three listing tiers: The NASDAQ Global Select Market, The NASDAQ Global Market and The NASDAQ Capital Market. The Company has approximately 2,860 companies listed securities on The NASDAQ Stock Market, with over 1,530 listings on The NASDAQ Global Select Market, approximately 670 on The NASDAQ Global Market and over 660 on The NASDAQ Capital Market. It pursues new listings from companies, including those undergoing initial public offerings (IPOs), as well as companies seeking to switch from alternative exchanges. The NASDAQ Stock Market attracts approximately 270 new listings.
The Company offers listings on the exchanges that consist of Nasdaq Nordic and Nasdaq Baltic. For smaller companies and growth companies, it offers access to the financial markets through the Nasdaq First North alternative marketplaces. The Company has approximately 850 companies listed securities on its Nordic and Baltic exchanges and Nasdaq First North. Its European listing customers include companies, funds and governments. Customers issue securities in the form of cash equities, depository receipts, warrants, ETFs, convertibles, rights, options, bonds or fixed-income related products. It has over 90 new companies listed on its Nordic and Baltic exchanges and Nasdaq First North. Its Listing Services segment also includes The NASDAQ Private Market, LLC (NPM) and SecondMarket Solutions, Inc. (SecondMarket), which are marketplaces for private growth companies.
The Company's Information Services segment includes its Data Products, and its Index Licensing and Services businesses. Its data products provide transparency and critical information to professional and non-professional investors. It collects, processes and creates information, and earns revenues as a distributor of its own, as well as select, third-party content. It provides varying levels of quote and trade information to market participants and to data distributors, who in turn provide subscriptions for this information. Its systems enable distributors to gain direct access to its market depth, index values, mutual fund valuation, order imbalances, market sentiment and other analytical data. It distributes this market information to both market participants and non-participants through a range of products, including NASDAQ TotalView, its flagship market depth quote product. TotalView shows subscribers quotes, orders and total anonymous interest at every price level in The NASDAQ Stock Market for NASDAQ-listed securities and critical data for the opening, closing, halt and IPO Crosses. It also offers TotalView products for its Nasdaq BX and Nasdaq PSX markets. The Company operates various other services and data products to provide market information, including NASDAQ Basic, a Level 1 feed and Ultrafeed, a normalized feed of North American equity, Dorsey, Wright & Associates, LLC's (DWA's) Web-based advisor tools, options, futures, indexes and mutual fund data. In addition, eSpeed delivers United States Treasury data.
The Company's data products business includes revenues United States tape plans. The NASDAQ Stock Market acts as the administrator for the Joint Self-Regulatory Organization Plan Governing the collection, consolidation, and dissemination of quotation and transaction information for NASDAQ-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges (UTP) Basis Plan. In this role, NASDAQ sells quotation and last sale information for all transactions in NASDAQ-listed securities, whether traded on The NASDAQ Stock Market or other exchanges, to market participants and to data distributors providing the information to subscribers. The Nasdaq Nordic and Nasdaq Baltic exchanges, as well as Nasdaq Commodities, also offer data products and services. European data products and services are based on trading information from the Nasdaq Nordic and Nasdaq Baltic exchanges, as well as Nasdaq Commodities, for a range of classes of assets, including cash equities, bonds, derivatives and commodities. It provides varying levels of quote and trade information to market participants and to data distributors providing subscriptions for this information.
The Company's European data products include Nordic Equity TotalView, Nordic Derivative TotalView, Nordic Fixed Income TotalView, Level 2, Analytics and Fixings. It provides index data products based on Nasdaq indexes. Its Index data products include Global Index Data Service, which delivers real-time index values throughout the trading day, and Global Index Watch, which delivers weightings and components data, corporate actions and a breadth of additional data. Its Index Licensing and Services business is an index provider that develops and licenses Nasdaq branded indexes, associated derivatives and financial products. It also provides custom calculation services for third-party clients. It also licenses cash-settled options, futures and options on futures on its indexes. Its flagship index, the NASDAQ-100 Index, includes over 100 non-financial securities listed on The NASDAQ Stock Market. It also operates the NASDAQ Global Index Family, which includes approximately 40,000 indexes. The family consists of global securities broken down by market segment, region, country, size and sector. The NASDAQ Global Index Family covers over 40 countries and approximately 9,000 securities. Its DWA offers data analytics, passive indexing and smart beta strategies. DWA is added to Nasdaq's index portfolio to support the financial advisor community.
The Company's Technology Solutions segment includes its Corporate Solutions and Market Technology businesses. Its Corporate Solutions business serves corporate clients, including companies listed on its exchanges. It helps organizations manage the two-way flow of information with their constituents, including their board members and investors, and with clients and the public through its suite of technology, analytics and consultative services. It provides Corporate Solutions products and services in a range of areas, including investor relations, public relations, multimedia solutions and governance. It offers investor relations content, analytics, advisory services and communications tools, including investor relations Webcasting and Websites. Its solutions allow companies to interact and communicate with analysts and investors.
The Company offers solutions to help clients identify, reach, monitor and measure their public relations program. It provides traditional and social media contact databases. Its press release distribution network allows clients to reach global audiences. Its suite of technology solutions help clients monitor news media for their brand, reputation, products, as well as industry competitors, and measure the success of their communications programs. It offers a platform and services, which enable its customers to produce Webcasts for a range of applications, including investor relations, public relations, marketing and internal communications.
The Company's Market Technology business is a global technology solutions provider and partner to exchanges, clearing organizations, central securities depositories, regulators, banks, brokers and corporate businesses. Its Market Technology business is the sales channel for its global offering to other marketplaces. Market Technology provides technology solutions for trading, clearing, settlement, surveillance and information dissemination to markets with ranging requirements. Its marketplace solutions can handle an array of assets, including cash equities, equity derivatives, currencies, various interest-bearing securities, commodities and energy products. Its trading and data solutions are utilized by exchanges, alternative-trading venues, banks and securities brokers with marketplace offerings of their own. In the post-trade stage, it offers integrated systems solutions for clearing (risk management) and settlement (settlement and delivery) of both cash equities and derivatives to clearing organizations around the world. Nasdaq's market technology is utilized by the Australian Securities Exchange (ASX Limited), ICAP plc (ICAP), Bolsa de Valores de Colombia, Borsa Istanbul, Egyptian Exchange, Hong Kong Exchanges and Clearing Limited, SIX Swiss Exchange, Singapore Exchange, Tokyo Commodity Exchange, Japan Exchange Group, Bursa Malaysia and SBI Japannext, among others.
The Company competes with the Chicago Board Options Exchange, Inc., the International Securities Exchange Holdings, Inc., NYSE ARCA, NYSE Amex, BATS Options, EDGE Options, The MIAX Options Exchange, C2 Options Exchange, the BOX Options Exchange Group, LLC, ISE Gemini, EUREX Group ICE Futures Europe, Turquoise, ICE, BATS Global Markets, Inc., BATS Chi-X Europe, Euronext, Deutsche Borse AG, the London Stock Exchange Group plc, Dealerweb, New York Stock Exchange, NYSE MKT, Hong Kong Stock Exchange, Standard & Poor's, and Dow Jones.
1 Liberty Plz
NEW YORK NY 10006-1404
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