Nasdaq, Inc.

Nasdaq, Inc. is an American multinational financial services corporation that owns and operates three stock exchanges in the United States: the namesake Nasdaq stock exchange, the Philadelphia Stock Exchange, and the Boston Stock Exchange, and seven European stock exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. It is headquartered in New York City, and its president and chief executive officer is Adena Friedman.

Nasdaq, Inc.
FormerlyNasdaq Stock Market, Inc.
NASDAQ OMX Group, Inc.
TypePublic
NASDAQ: NDAQ
S&P 500 Component
IndustryFinancial services
FateAnnounced to merged Nasdaq to form DES Nasdaq
FoundedFebruary 8, 1971 (1971-02-08)
Defunct2021
HeadquartersOne Liberty Plaza,
New York, New York
,
U.S.
Area served
United States, Europe
Key people
Michael R. Splinter (Chairman)
Adena Friedman (CEO)
ProductsDerivatives, equity trading platforms, futures and options markets, market data, securities exchanges, financial technology and related services
RevenueUS$ 4.2 billion (2018)[1]
US$ 1.081 billion (2018)
US$ 458 million (2018)
Total assetsUS$ 15.7 billion (2018)
Total equityUS$ 5.4 billion (2018)
OwnerInvestment Corporation of Dubai (18.1%)
Investor AB (11.8%)
Number of employees
4,099 (2018)
SubsidiariesNASDAQ, OMX
Websitewww.nasdaq.com

Historically, the European operations have been known by the company name OMX AB (Aktiebolaget Optionsmäklarna/Helsinki Stock Exchange), which was created in 2003 upon a merger between OM AB and HEX plc. The operations have been part of Nasdaq, Inc. (formerly known as Nasdaq OMX Group) since February 2008.[2] They are now known as Nasdaq Nordic, which provides financial services and operates marketplaces for securities in the Nordic and Baltic regions of Europe.[3]

History

1625–2008: European bourses merged in OMX AB
Further information: Nasdaq Iceland § History, Nasdaq Stockholm § History, Nasdaq Copenhagen § History, Nasdaq Helsinki § History, Nasdaq Tallinn § History, Nasdaq Riga § History, and Armenia Securities Exchange § History

OM AB (Optionsmäklarna) was a futures exchange founded by Olof Stenhammar in the 1980s to introduce trading in standardized option contracts in Sweden. OM acquired the Stockholm Stock Exchange in 1998[4] and unsuccessfully attempted acquisition of the London Stock Exchange in 2001.[5] During the dot-com bubble in the early 21st century, OM, together with investment bank Morgan Stanley Dean Witter, launched a virtual European stock exchange called Jiway. The project was not successful[6] and was cancelled on October 14, 2002.[7]

On September 3, 2003, the Helsinki Stock Exchange (HEX) merged with OM, and the joint company became OM HEX.[8] On August 31, 2004, the brand name of the company was changed to OMX.[9] OMX then acquired the Copenhagen Stock Exchange in January 2005[4] for €164 million.[10] On September 19, 2006, the Iceland Stock Exchange owner Eignarhaldsfelagid Verdbrefathing (EV) announced it would be acquired by OMX in a deal valuing the company at 250 million SEK.[11] The transaction was completed by the end of the year.[4]

The company took a 10% stake in Oslo Børs Holding ASA, the owner of the Oslo Stock Exchange in October 2006. As of September 2016, Nasdaq is not a major shareholder in the Oslo Stock Exchange holding company, which following a merger is currently called Oslo Børs VPS Holding ASA. Nasdaq has, however, publicly stated its interest in eventually acquiring the Oslo Stock Exchange.[12][13][14]

In November 2007, OMX acquired the Armenian Stock Exchange and the Central Depository of Armenia.[15]

In December 2005, OMX started First North, an alternative exchange for smaller companies, in Denmark. The First North exchange expanded to Stockholm in June 2006, Iceland in January 2007 and Helsinki in April 2007.[16] The Markets Technology division of Computershare was acquired in 2006. The acquisition greatly expanded its product offerings and made its client list the largest of all trading system technology providers.

On October 2, 2006, the group launched a virtual Nordic Stock Exchange after merging the individual lists of shares traded at its three wholly owned Nordic exchanges into a combined Nordic List.[17] Companies listed on the Iceland Stock Exchange have also since been merged into the list. OMX also launched a pan-regional benchmark index known as the OMX Nordic 40 on the same date; however, the individual exchanges have also retained their own national benchmark indices.

1971–2008: NASDAQ
Further information: NASDAQ § History
2006-2007: Attempted acquisition of the London Stock Exchange

In December 2005, the London Stock Exchange Group (LSE) rejected a £1.6 billion takeover offer from Macquarie Bank. The LSE described the offer as "derisory". It then received a bid in March 2006 for £2.4 billion from NASDAQ, which was also rejected by the LSE. NASDAQ later pulled its bid, and less than two weeks later on April 11, 2006, struck a deal with LSE's largest shareholder, Ameriprise Financial's Threadneedle Asset Management unit, to acquire all of that firm's stake, consisting of 35.4 million shares, at £11.75 per share.[18] NASDAQ also purchased 2.69 million additional shares, resulting in a total stake of 15%. While the seller of those shares was undisclosed, it occurred simultaneously with a sale by Scottish Widows of 2.69 million shares.[19] The move was seen as an effort to force LSE to negotiate either a partnership or eventual merger, as well as to block other suitors such as NYSE Euronext, owner of the New York Stock Exchange.[20]

Subsequent purchases increased NASDAQ's stake to 29%, holding off competing bids for several months. However, only a further 0.4% of shareholders accepted the offer by the deadline and therefore the offer was rejected[21] on February 10, 2007.

2007: Acquisition of the Boston and Philadelphia exchanges

On October 2, 2007, Nasdaq purchased the Boston Stock Exchange.[22] On November 7, Nasdaq announced an agreement to purchase the Philadelphia Stock Exchange.[23]

2007: Creation
Former logo used from 1971 to 2014, with Nasdaq logo added in 2007. "OMX" was omitted from the corporate name and logo in 2015.

On May 25, 2007, NASDAQ agreed to buy OMX for US$3.7 billion.[24] In August, however, Borse Dubai offered US$4 billion, prompting speculation of a bidding war.[25] On September 20, 2007, Borse Dubai agreed to stop competing to buy OMX in return for a 20% stake and 5 percent of votes in NASDAQ as well as NASDAQ's then 28% stake in the London Stock Exchange.[26] In a complex transaction, Borse Dubai acquired 97.2% of OMX's outstanding shares before selling them on to NASDAQ.[27] The newly merged company was renamed the NASDAQ OMX Group upon completion of the deal on February 27, 2008.

On June 18, 2012, NASDAQ became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).[28]

2012: Acquisition of Thomson Reuters businesses

On December 12, 2012, NASDAQ OMX announced that it would acquire Thomson Reuters' investor relations, public relations and multimedia businesses for $390 million in cash.[29] NASDAQ OMX completed the purchase on June 3, 2013.[30]

2017: Launch of Nasdaq Ventures

In April 2017, Nasdaq launched Nasdaq Ventures, a venture investment program focused on companies that will help Nasdaq grow its product lines and open new market segments. The first 3 companies announced as part of the program are Chain, a blockchain technology company; Digital Reasoning, cognitive computing technology; and Hanweck, real-time risk analytics.[31]

2018: Bid for Oslo Stock Exchange

During Christmas of 2018, shareholders representing 25% of Oslo Børs VPS Holding (the Norwegian Stock Exchange and national CSD operator)[32] held a private auction of share sale. Nasdaq did not participate in the auction due to the hostile nature of the bid (held without Oslo Børs boards knowledge or approval). Euronext won the auction, and later secured another 24.6% of shareholder support, totalling 49.6%. Following this, Nasdaq acquired 32.5% shares in open market (mainly from individual shareholders/employees),[33] and submitted an official bid, with unanimous recommendations from board and some key shareholders,[34] to acquire remaining shares for 152 NOK, and later increased offer to 158 NOK (or almost 44% premium of December 17, 2018 closing price, to mach Euronext offer),[35] additionally making the case to Norway's markets regulator that in cases like this, 2/3 of the share control may be necessary to comply with any applicable regulatory requirement. In the end the regulator did not side with the two-thirds requirements, and general majority was deemed to be applicable. Euronext by that time had acquired or secured control of 50.5% shares,[36] and Nasdaq had announced on May 25, 2019 that they were pulling out of the Oslo Børs battle, handing Euronext the victory.[37]

The following timeline outlines the consolidation through mergers and acquisitions among bourses in the European Union, which has taken place since the 1990s in response to financial harmonisation and liberalisation. Current, independent (parent) exchange companies are shown in colour.

    Intercontinental Exchange, Inc.
  New York Stock Exchange, Inc. NYSE Euronext, Inc.
    London Traded Options Market London International Financial Futures and Options Exchange Euronext N.V.
      London International Financial Futures Exchange
    London Commercial Sale Rooms London Commodity Exchange  
Amsterdam Exchanges N.V. (Amsterdam Bourse)     Euronext N.V.
    Bourse de Valeurs Mobilières de Bruxelles S.A. (Brussels Bourse)
  Société des Bourses Françaises S.A. (Paris Bourse)
    Bolsa de Valores de Lisboa e Porto (Lisbon Bourse)
          Irish Stock Exchange  
                Oslo Stock Exchange Oslo Børs Holding ASA Oslo Børs VPS Holding ASA  
                                      Verdipapirsentralen Verdipapirsentralen ASA  
                                    VP Securities A/S  
                  Borsa Italiana S.p.A. (Italian Bourse) London Stock Exchange Group plc  
    London Stock Exchange plc  
                                              Statnett Marked AS   Nord Pool Spot AS Nord Pool AS  
                                              Nord Pool ASA    
                                National Association of Securities Dealers, Inc. (NASD) NASDAQ NASDAQ OMX Group, Inc. Nasdaq, Inc.
                      Stockholm Stock Exchange OM AB OM HEX AB OMX AB
                          Helsinki Stock Exchange Helsinki Exchanges Group Plc
                                                Tallinn Stock Exchange  
                                              Riga Stock Exchange  
                                              Vilnius Stock Exchange
  Copenhagen Stock Exchange  
                                          Iceland Stock Exchange  
                                                          Armenian Stock Exchange  
                                                SIX Swiss Exchange AG
                      Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (Spanish Bourses)  
                          Budapest Stock Exchange     Budapest Stock Exchange
          Wiener Börse AG (Vienna Stock Exchange) Central and Eastern Europe Stock Exchange Group AG Vienna Stock Exchange
                                                Burza cenných papírů Praha, a.s. (Prague Stock Exchange)  
                                            Ljubljana Stock Exchange      
                                              Zagreb Stock Exchange
Frankfurter Wertpapierbörse AG (Frankfurt Stock Exchange)   Deutsche Börse AG (German Bourse)
                                  Centrale de Livraison de Valeurs Mobilières Cedel International  
                                                              European Energy Exchange  
                                                        Eurex Exchange  
                                                        STOXX
1585
1602
1625
1698
1724
1769
1771
1792
1799
1801
1808
1818
1831
1863
1864
1912
1954
1970
1971
1978
1979
1980
1985
1989
1991
1993
1995
1996
1998
2000
2001
2002
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2014
2015
2016
2018
2019
2020
2021

Additional services

NASDAQ Inc. partners with stock exchanges all over the world. One of the most recent partnerships was signed with Astana International Financial Centre (AIFC) in May 2017. According to the agreement, NASDAQ will power Kazakhstan's nascent stock exchange, the AIFC Exchange.[38]

Global Information Services

In January 2013, NASDAQ OMX announced that it would combine its global data products and index businesses into a unit called Global Information Services, as part of an ongoing effort to broaden its portfolio.[39]

Directors Desk

On June 29, 2007, NASDAQ entered into an agreement to acquire DirectorsDesk.com, a management suite for boards of directors.[40]

GlobeNewswire

GlobeNewswire (previously PrimeNewswire) provides press release, editing and wire services. It was founded in 1998 and acquired by NASDAQ OMX in 2006.[41]

SMARTS

On July 27, 2010, NASDAQ OMX Group, Inc. acquired SMARTS Group, a provider of market surveillance systems to exchanges, regulators and brokers.[42] SMARTS Group had been a private company operating in Sydney, Australia, incorporating the market analysis software of Michael James Aitken.[43][44] By 2017 SMARTS remained the leading market surveillance software,[45] and was employed by thirteen regulators on forty-five exchanges.[46]

Carpenter Moore

NASDAQ OMX sold its stake in the Carpenter Moore D&O Insurance in 2009.

Exchanges
Stock exchanges (listing venues) owned by Nasdaq, Inc..

The following exchanges are operated by Nasdaq, Inc.:[47]

Divisions

The company's stock market activities are categorized into three divisions:

  • Nordic Market (Copenhagen, Stockholm, Helsinki, Iceland)
  • Baltic Market (Tallinn, Riga, Vilnius)
  • First North (alternative exchange)

Technology

In North America, OMX supports its most high-profile customers such as the Financial Industry Regulatory Authority (FINRA), ICAP, ISE, and IDCG, which are powered by OMX trading systems such as X-stream, CLICK, CONDICO and SAXESS.

OMX is the world's leading provider of central securities depository (CSD) technology. Its Equator CSD product is used by clients in Europe, the Middle East, Africa and the Caribbean.

Central counterparty clearing (CCC) technology is a significant potential growth area for OMX. OMX's SECUR clearing[51] and Genium trading platform[52] facilitate trade novation, derivatives clearing, risk management and improved liquidity. SECUR clearing and Genium trading technology are in production around the world.

OMX's technology customers include:

See also

References
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  38. "Astana International Financial Centre JSC and Nasdaq Sign Technology Deal for New AIFC Exchange". Finance.yahoo.com.
  39. "Nasdaq OMX continues streamlining efforts", Financial Times, January 29, 2013. Retrieved January 30, 2013.
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