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Nasdaq, Inc.

From Alfawiki
Nasdaq, Inc.
Company typePublic
IndustryFinancial services
Headquarters
New York City
,
United States
Area served
Global
Key people
Adena Friedman (President and CEO)
ProductsStock exchanges, market infrastructure, financial services, market technology solutions
Websitehttps://www.nasdaq.com

Nasdaq, Inc. is a global American financial services company that owns and manages three major U.S. stock exchanges: the Nasdaq Stock Market (where it is also publicly traded), the Philadelphia Stock Exchange, and the Boston Stock Exchange. Additionally, it operates seven European exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. The corporation’s headquarters are located in New York City, with Adena Friedman serving as its president and chief executive officer.

The European segment of Nasdaq, previously known as OMX AB (Aktiebolaget Optionsmäklarna/Helsinki Stock Exchange), traces its roots back to a 2003 merger between OM AB and HEX plc. Since February 2008, these entities have been incorporated into Nasdaq, Inc. (formerly Nasdaq OMX Group). Operating under the brand Nasdaq Nordic, they provide market infrastructure and financial services across the Nordic and Baltic countries.

1980–2008: Consolidation of European exchanges into OMX AB

OM AB (short for Optionsmäklarna) was established in the 1980s by Olof Stenhammar as a futures exchange aimed at introducing standardized options trading within Sweden. In 1998, OM acquired the Stockholm Stock Exchange and pursued a takeover of the London Stock Exchange in 2001, although this effort did not succeed. During the dot-com boom of the early 2000s, OM collaborated with Morgan Stanley Dean Witter to launch Jiway, a virtual European stock exchange that was ultimately discontinued in 2002 due to insufficient market traction.

On September 3, 2003, OM merged with the Helsinki Stock Exchange (HEX), creating OMHEX. The company adopted the OMX name on August 31, 2004. OMX further expanded by purchasing the Copenhagen Stock Exchange in January 2005 for €164 million and acquiring Eignarhaldsfelagid Verdbrefathing (EV), owner of the Iceland Stock Exchange, in late 2006 for 250 million SEK. In October 2006, OMX secured a 10% ownership stake in Oslo Børs Holding ASA, which controls the Oslo Stock Exchange. Although Nasdaq is not a significant shareholder following the Oslo Børs VPS Holding ASA merger, it has indicated interest in acquiring the Oslo Stock Exchange.

In November 2007, OMX took ownership of the Armenia Securities Exchange along with Armenia’s Central Depository; these assets were divested to the Central Bank of Armenia in 2018.

OMX introduced First North in December 2005 as an alternative marketplace tailored for smaller enterprises. This platform initially launched in Denmark before expanding to Stockholm (June 2006), Iceland (January 2007), and Helsinki (April 2007). The acquisition of Computershare’s Markets Technology division in 2006 substantially broadened OMX’s technological capabilities and client portfolio within trading system solutions.

On October 2, 2006, OMX created a virtual Nordic Stock Exchange by consolidating listings from its three Nordic exchanges into a unified Nordic List that included companies from Iceland. Concurrently, it launched the pan-regional benchmark index called OMX Nordic 40, while maintaining separate national indices for each country.

2006–2007: Unsuccessful bid to acquire London Stock Exchange

In December 2005, the London Stock Exchange Group (LSE) dismissed a £1.6 billion takeover proposal from Macquarie Bank, labeling it as "derisory." A few months later, in March 2006, NASDAQ presented a £2.4 billion offer, which was also turned down. Although NASDAQ retracted this bid, it soon acquired a 15% ownership in LSE on April 11, 2006, by purchasing 35.4 million shares from LSE’s largest shareholder, Threadneedle Asset Management of Ameriprise Financial, at £11.75 per share. Further share acquisitions raised NASDAQ’s total holding to 15%, coinciding with Scottish Widows selling 2.69 million shares.

This investment move was designed to encourage LSE to enter discussions regarding a potential partnership or merger and to prevent rival bids from competitors such as NYSE Euronext. Subsequent share purchases increased NASDAQ’s stake to 29%, effectively deterring competing offers for several months. Nevertheless, with only an additional 0.4% of shareholders accepting the proposal by the deadline, NASDAQ’s takeover attempt was ultimately unsuccessful on February 10, 2007.

2007: Formation of Nasdaq OMX Group

On May 25, 2007, NASDAQ announced its agreement to acquire OMX for US$3.7 billion. In August, Borse Dubai countered with a US$4 billion bid, initiating a potential bidding contest. However, on September 20, 2007, Borse Dubai withdrew from the competition in exchange for acquiring a 20% equity stake and 5% voting rights in NASDAQ, along with NASDAQ’s 28% holding in the London Stock Exchange. Subsequently, Borse Dubai obtained 97.2% of OMX shares before transferring them to NASDAQ. The transaction was finalized on February 27, 2008, resulting in the creation of the NASDAQ OMX Group.

On June 18, 2012, NASDAQ became an inaugural participant in the United Nations Sustainable Stock Exchanges initiative, supporting global sustainability objectives ahead of the Rio+20 summit.

2017: Introduction of Nasdaq Ventures

In April 2017, Nasdaq established Nasdaq Ventures, a venture capital initiative aimed at investing in companies that facilitate Nasdaq’s product diversification and expansion into new markets. The initial investments included Chain, a blockchain technology company; Digital Reasoning, which focuses on cognitive computing; and Hanweck, specializing in real-time risk analytics.

2018: Attempted Acquisition of Oslo Stock Exchange

Toward the end of 2018, shareholders owning approximately 25% of Oslo Børs VPS Holding engaged in a private share auction without board consent. Due to the hostile nature of this bid, Nasdaq chose not to participate. Euronext won the auction and subsequently increased its ownership to 49.6%. Nasdaq then acquired a 32.5% stake through open market purchases primarily from individual investors and employees and submitted a formal offer backed by the board and major shareholders to acquire remaining shares at 152 NOK per share. Nasdaq later raised its bid to 158 NOK per share, matching Euronext’s offer and representing nearly a 44% premium over the December 2018 closing price. Nasdaq argued that Norwegian market regulators required two-thirds ownership for control; however, regulators determined that majority ownership sufficed. With Euronext achieving a controlling stake of 50.5%, Nasdaq withdrew from the acquisition process on May 25, 2019, conceding victory to Euronext.

2007: Purchase of Boston and Philadelphia Stock Exchanges

On October 2, 2007, Nasdaq completed the acquisition of the Boston Stock Exchange. Shortly thereafter, on November 7, Nasdaq revealed plans to acquire the Philadelphia Stock Exchange.

2012: Acquisition of Thomson Reuters Divisions

NASDAQ OMX declared on December 12, 2012, its intention to purchase certain Thomson Reuters units for $390 million in cash. This deal included the acquisition of their investor relations, public relations, and multimedia operations. The transaction was finalized on June 3, 2013.

2017: Acquisition of eVestment

In September 2017, Nasdaq entered into an agreement to acquire eVestment, a privately owned enterprise, for $705 million through a combination of debt and cash. This marked the first significant acquisition under CEO Adena Friedman and signaled Nasdaq’s strategic move toward becoming a premier SaaS technology provider. The deal closed during the fourth quarter of 2017.

2020: Acquisition of Verafin

Nasdaq announced on November 19, 2020, its acquisition of Verafin for $2.75 billion in cash. This transaction united Nasdaq’s worldwide regulatory technology expertise with Verafin’s sophisticated anti-money laundering and fraud detection solutions. The acquisition was completed on February 11, 2021.

2023: Acquisition of Adenza

In June 2023, Nasdaq agreed to purchase Adenza from Thoma Bravo in a cash-and-stock deal valued at $10.5 billion, representing the largest transaction in Nasdaq’s history. As part of this agreement, Thoma Bravo obtained a 15% ownership stake in Nasdaq.

Additional services

NASDAQ Inc. partners with stock exchanges internationally, including a recent collaboration with Astana International Financial Centre (AIFC) in May 2017 to support Kazakhstan’s developing Astana International Exchange (AIX).

Global Information Services

In January 2013, NASDAQ OMX merged its global index and data product segments into the Global Information Services division to broaden its range of offerings.

Directors Desk

On June 29, 2007, NASDAQ acquired DirectorsDesk, a software suite designed to facilitate board management activities.

GlobeNewswire

GlobeNewswire, originally known as PrimeNewswire and founded in 1998, delivers press release distribution, editing, and wire services. NASDAQ OMX acquired this service in 2006 and later divested it to Intrado in April 2018.

SMARTS

NASDAQ OMX purchased SMARTS Group on July 27, 2010. Based in Australia, SMARTS provides market surveillance software to exchanges, regulators, and brokerage firms. Developed from Michael James Aitken’s market analysis technology, SMARTS remained a leading surveillance solution by 2017, supporting thirteen regulatory bodies across forty-five exchanges.

Carpenter Moore

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

Exchanges

Nasdaq, Inc. operates the following stock exchanges:

Divisions

Nasdaq, Inc. structures its stock market activities into three primary segments:

  • Nordic Market (covering Copenhagen, Stockholm, Helsinki, and Iceland)
  • Baltic Market (including Tallinn, Riga, and Vilnius)
  • First North (serving as an alternative trading platform)

Technology

In the North American region, OMX delivers technology solutions to major clients such as the Financial Industry Regulatory Authority (FINRA), ICAP, ISE, and IDCG. These clients utilize OMX’s suite of trading systems like X-stream, CLICK, CONDICO, and SAXESS.

OMX is recognized as a prominent supplier of central securities depository (CSD) technology through its Equator CSD product, which is implemented across Europe, the Middle East, Africa, and the Caribbean.

The central counterparty clearing (CCC) technology segment holds considerable potential for expansion. OMX’s SECUR clearing platform combined with the Genium trading platform supports trade novation, derivatives clearing, risk mitigation, and improved liquidity on a global scale.

Among OMX’s technology clientele are:

See also

External links

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