NASDAQ OMX Group, Inc.

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NASDAQ OMX Group
Image:NASDAQOMXlogo.gif
Founded Feb. 27, 2008
Headquarters New York
Key People Robert Greifeld, CEO; Magnus Bocker, President
Products Exchange offering products covering multiple asset classes
Web site www.nasdaq.com

NASDAQ OMX Group, Inc. combines the Nasdaq Stock Market and the Nordic exchanges' OMX Nordic Exchange marketplace, a merger completed on Feb. 27, 2008, with NASDAQ as the acquirer.[1] As part of the transaction, NASDAQ OMX Group also became a 33-1/3 percent shareholder in DIFX, Dubai's international financial exchange. Borse Dubai is a 19.9 percent shareholder of NASDAQ OMX Group.

Contents

Background of the Combined Entity

NASDAQ OMX Group delivers trading, exchange technology and public company services across six continents, and with over 3,900 companies. This includes a U.S. listings market; the OMX Nordic Exchange, including First North; and the 144A PORTAL Market. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX Group technology supports the operations of over 60 exchanges, clearing organizations and central securities depositories in more than 50 countries.

OMX Nordic Exchange is not a legal entity but describes the common offering from NASDAQ OMX Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius.

Prior to the merger with OMX, the Nasdaq Stock Market (NASDAQ) listed itself as is the world's second-largest cash equities platform by trading volume and the biggest electronic screen-based equity securities market in the U.S. in terms of listings and traded share volume.[2]

With approximately 3,200 listed companies, it is home to all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology industries. NASDAQ is the primary market for trading NASDAQ-listed stocks.

NASDAQ trades on the Nasdaq Global Select Market under the symbol "NDAQ."

History

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The NASDAQ Stock Market, Inc., debuted in 1971 as the world’s first electronic stock market. Restricted shares of NASDAQ were initially sold by the NASD in 2000 through a private placement offering. Trading restrictions expired in 2002 and shares began trading on the OTC Bulletin Board under the symbol NDAQ. On Feb. 9, 2005, NASDAQ listed its shares on The Nasdaq Stock Market following an offering of secondary shares priced at $9 per share.

Nasdaq was traditionally known as the home of technology and growth stocks, but has since expanded into a wide variety of sectors. [1]

Nasdaq embarked on a two-year pursuit of an expanded foothold in Europe with an indicative 950p-a-share offer for the London Stock Exchange on March 3, 2006, which was swiftly rejected by the LSE and withdrawn on March 30, 2006. Nasdaq started acquiring LSE stock on Apr. 12, 2006, building a 14.99 percent stake at 1,175p a share, adding a further 3.8 percent on May 3 at 1,218p and 5.4 percent at 1,248p on November 12. Nasdaq tabled a £2.9 billion indicative offer on Nov. 20, 2006 valued at 1,243p per share, with the U.S. exchange boosting its stake from 24.1 percent to 28.75 percent. The LSE continued to reject the offer and rejected discussions with Nasdaq executives. The offer expired on Feb. 10, 2007.

While remaining the LSE's largest shareholder, Nasdaq then embarked in what became a three-way takeover battle for OMX, which saw it lined up against Borse Dubai and the Qatar Investment Authority (QIA). Borse Dubai and the U.S. exchange subsequently teamed up with a joint offer, while the QIA bowed out in December 2007, selling its shares in OMX to Borse Dubai in February 2008.

The proposed deal, which is subject to shareholder approval but expected to close in early 2008, will see Borse Dubai acquire OMX and then transfer it to Nasdaq in return for a 19.9 percent stake in a new combined company as well as Nasdaq's 28 percent stake in LSE.[2]

Key Executives In March 2008, NASDAQ OMX Group named its slate of officers[3]:

On Jan. 20 of 2009, NASDAQ OMX Group, Inc. renamed the Philadelphia Board of Trade NASDAQ OMX Futures Exchange (NFX). NASDAQ OMX acquired PBOT as part of its acquisition of the Philadelphia Stock Exchange in July 2008. NFX serves as a futures exchange within the NASDAQ OMX Group. NFX is a designated contract market under CFTC jurisdiction and currently lists 10 futures products; including interest rate swap futures, currency futures and sector index futures for trading.[4] Ben Craig, previously vice president of Strategy & Futures for NASDAQ OMX U.S. transaction services, would serve as president of the NASDAQ OMX Futures Exchange. Craig would be based in NASDAQ OMX's Philadelphia, PA offices. Craig joined NASDAQ OMX following the acquisition of The Philadelphia Stock Exchange in 2008.

Hours

NASDAQ Stock Market Trading Sessions (Eastern Time):

  • Pre-market trading hours from 7 a.m. to 9:30 a.m.
  • Market hours from 9:30 a.m. to 4 p.m.
  • After-market hours from 4 p.m. to 8 p.m.

NASDAQ Company Finder

NASDAQ's Company Finder allows investors to search for any NASDAQ-listed company using name, symbol, state and zip code. Investors can also sort the information by company name, issue symbol, or total market value. A legend explaining the results screen is accessible from each page.[5]

News

  • On Jan. 8, 2009, Nasdaq OMX announced a new index to track the performance of companies receiving government aid through the $700 billion financial bailout (TARP) and other programs.
  • On Oct. 21, 2008, Nasdaq OMX acquired the consulting and clearing units and international derivatives products of Nord Pool of Oslo for about 2.3 billion Norwegian kroner ($412 million).
  • On Feb. 27, 2008, The Nasdaq Stock Market, Inc. (Nasdaq:NDAQ) (NASDAQ(r)) completed its combination with OMX AB, creating The NASDAQ OMX Group, Inc. (NASDAQ OMX Group).
  • On Nov. 29, 2007, a Reuters story indicated that NASDAQ would slow down its deal making in 2008 to "absorb its recently announced acquisitions," according to Robert Greifeld, president and chief executive. NASDAQ reached deals to take over the Philadelphia and Boston stock exchanges and to buy Nordic market operator OMX jointly with Borse Dubai. According to the article, when Greifeld was asked if that intimated that the NASDAQ would not be seeking new deals in 2008, Greifeld replied: "That's a realistic assumption."[8]
  • On Nov. 7, 2007, NASDAQ announced that it had entered into a definitive agreement to acquire the Philadelphia Stock Exchange (PHLX), with the purpose of significantly diversifying NASDAQ’s product portfolio by providing NASDAQ with an options trading platform. Under the terms of the agreement, NASDAQ would pay $652 million in cash for the capital stock of the Philadelphia Stock Exchange. This transaction is expected to close in the first quarter of 2008 and to become accretive to 2009 earnings. The board of directors of each company unanimously approved the transaction and it is subject to other customary approvals.[9]
  • On Jan. 11, 2010, Nasdaq OMX Group announced it would offer $700 million of notes and was getting $1.25 billion in new credit, both of which it will use to fully repay its current credit facilities. As a result, Standard & Poor's upgraded the exchange's rating, lifting it one notch from the final rung before junk status.[11]

References

  1. ↑ How Stock Markets Work. Forbes. Retrieved on July 8, 2009.
  2. ↑ Qatar bows out of OMX battle. Financial Times. Retrieved on January 17, 2008.
  3. ↑ Key Executives. Nasdaq. Retrieved on March 21, 2008.
  4. ↑ NASDAQ OMX Rebrands Philadelphia Board of Trade to NASDAQ OMX Futures Exchange. NASDAQ OMX. Retrieved on January 20, 2009.
  5. ↑ NASDAQ Company Finder. NASDAQ. Retrieved on November 7, 2007.
  6. ↑ Press Release. NASDAQ OMX. Retrieved on January 20, 2009.
  7. ↑ "Nasdaq OMX Buys Stake in Fortis EMCF". A-Team Group. Retrieved on November 25, 2008.
  8. ↑ NASDAQ to Take Deal-Making Holiday: Greifeld. www.financialpost.com. Retrieved on November 30, 2007.
  9. ↑ NASDAQ to Acquire Philadelphia Stock Exchange. NASDAQ. Retrieved on November 7, 2007.
  10. ↑ NASDAQ to Acquire Boston Options Exchange. NASDAQ. Retrieved on November 7, 2007.
  11. ↑ Nasdaq To Borrow $1.95B To Repay Current Credit Deals. Wall Street Journal. Retrieved on January 11, 2010.
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