Profile: Nasdaq Inc (NDAQ.O)
18 Jan 2019
Nasdaq, Inc. (Nasdaq), 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. The Company manages, operates and provides its products and services through four segments: Market Services, Corporate Services, Information Services and Market Technology. Its global offerings include trading and clearing across various asset classes, trade management services, data products, financial indexes, capital formation solutions, corporate solutions, and market technology products and services. Its technology powers markets across the globe, supporting equity derivative trading, clearing and settlement, cash equity trading, fixed income trading and various other functions.
The Company's Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income clearing corporation (FICC) and trade management services businesses. Its FICC business is referred to as fixed income, currency and commodities trading and clearing, and its trade management services business is referred to as access and broker services. It operates multiple exchanges and other marketplace facilities across various asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange traded products (ETPs). In addition, it 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 and providing fee-based revenues.
The Company operates six electronic options exchanges in the United States: Nasdaq PHLX, The Nasdaq Options Market, Nasdaq BX Options, Nasdaq ISE, Nasdaq GMNI and Nasdaq MCRY. These exchanges facilitate the trading of equity options, exchange traded fund (ETF) options, index options and foreign currency options. Its options trading platforms provide trading opportunities to both retail investors, algorithmic trading firms and market makers, tending to prefer electronic trading, and institutional investors, who typically pursue complex trading strategies and often trade on the floor. In Europe, Nasdaq 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.
In the United States, the Company operates three cash equity exchanges: The Nasdaq Stock Market, Nasdaq BX and Nasdaq PSX. Its 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 operates exchanges in Stockholm (Sweden), Copenhagen (Denmark), Helsinki (Finland), and Reykjavik (Iceland). It also 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 owns the central securities depositories in Estonia, Latvia and Lithuania. Collectively, the Nasdaq Nordic and Nasdaq Baltic exchanges offer trading in cash equities and depository receipts, warrants, convertibles, rights, fund units and exchange traded funds.
The Company's FICC business includes the Nasdaq Fixed Income business, Nasdaq Futures, Inc. (NFX) and Nasdaq Commodities. The European portion of Nasdaq Fixed Income provides a range of products and services, such as listing, trading and clearing for fixed income products in Sweden, Denmark, Finland and Iceland. Nasdaq Oslo ASA is the commodity derivatives exchange for European products and freight. It also operates NFX, its United States based energy derivatives market. It provides market participants with a range of alternatives for connecting to and accessing its markets for a fee. Its marketplaces can be accessed through various protocols used for quoting, order entry, trade reporting, DROP functionality and connectivity to various data feeds. 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 centers. Its broker services operations offer technology and customized securities administration solutions to financial participants in the Nordic market. It offers customer and account registration, business registration, clearing and settlement, corporate action handling for reconciliations and reporting to authorities.
The Company's Corporate Solutions business serves corporate clients, including companies listed on its exchanges and private companies. 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 offers investor relations content, analytics, advisory services and communications tools, including investor relations Webcasting, press release services and Websites. It offers a secure collaboration platform for boards of directors or any team collaborating on confidential initiatives.
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 a range of industries, including, healthcare, consumer products, telecommunication services, information technology, financial services, industrials and energy. Its listing markets are The Nasdaq Stock Market and the Nasdaq Nordic and Nasdaq Baltic exchanges. As of December 31, 2017, a total of 2,949 companies listed securities on The Nasdaq Stock Market, with 1,413 listings on The Nasdaq Global Select Market, 7819 on The Nasdaq Global Market and 717 on The Nasdaq Capital Market. Its listing services business also includes The Nasdaq Private Market, LLC (NPM), which provides services for private companies.
The Company's Information Services segment includes its data products and its index licensing and services businesses. Its data products business sells and distributes historical and real-time quote and trade information to market participants and data distributors. Its data products develop transparency of the market activity within the exchanges that it operates and provides critical information to professional and nonprofessional investors. It collects, processes and creates information and earn revenues as a distributor of its own, as well as select, third-party content. The Nasdaq Nordic and Nasdaq Baltic exchanges, as well as Nasdaq Commodities, also offer data products and services. These data products and services provide market transparency to professional and non-professional investors participating in European marketplaces.
The Company's 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. License fees for its trademark licenses vary by product based on a percentage of underlying assets, dollar value of a product issuance, number of products or number of contracts traded. It also licenses cash-settled options, futures and options on futures on its indexes. As of December 31, 2017, it also operated the Nasdaq Global Index Family, which included over 40,000 indexes. The family consists of global securities broken down by market segment, region, country, size and sector. As of December 31, 2017, the Nasdaq Global Index Family covered 45 countries and approximately 9,000 securities.
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. The portfolio includes technology solutions for trading, clearing, settlement, surveillance and information dissemination to markets with a range of requirements, from the markets in the United States, Europe and Asia to markets in the Middle East, Latin America and Africa. Its marketplace solutions can handle a range of assets, including cash equities, equity derivatives, currencies, various interest-bearing securities, commodities and energy products.
The Company's 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. It also offers broker services through SMARTS Group Holdings Pty (SMARTS). SMARTS is a managed service designed for brokers and other market participants to assist them in complying with market rules, regulations and internal market surveillance policies. Through BWise, it offers enterprise governance, risk management and compliance software and services to help companies track, measure and manage organizational risks.
The Company competes with Bats BZX Exchange, Inc., Bats EDGX Exchange, Inc., BOX Options Exchange LLC, Chicago Board Options Exchange, Incorporated, C2 Options Exchange, Incorporated, Miami International Securities Exchange, MIAX Pearl, LLC, NYSE Arca, Inc., NYSE MKT, The Investors Exchange LLC, BATS Trading Limited, Euronext N.V., Deutsche Borse A.G., London Stock Exchange Group plc, Turquoise Global Holdings Limited, ICE Futures Europe, Intercontinental Exchange, Inc., S&P Global Inc., Bats Global Markets, Inc. and Dow Jones & Company.
1 Liberty Plz
NEW YORK NY 10006-1404
Company Web Links
- Nasdaq discussing potential deal for Oslo stock exchange: FT
- Nasdaq discussing potential deal for Oslo stock exchange - FT
- UPDATE 2-Euronext launches $729 mln bid for Oslo bourse
- Major Wall Street players plan exchange to challenge NYSE, Nasdaq
- UPDATE 4-Major Wall St players plan exchange to challenge NYSE, Nasdaq