Everipedia Logo
Everipedia is now IQ.wiki - Join the IQ Brainlist and our Discord for early access to editing on the new platform and to participate in the beta testing.
Nasdaq, Inc.

Nasdaq, Inc.

Nasdaq, Inc. is an American multinational financial services corporation that owns and operates (and is listed on) the NASDAQ stock market and eight European Stock Exchanges, including the Armenian Stock Exchange, Copenhagen Stock Exchange, Helsinki Stock Exchange, Iceland Stock Exchange, Riga Stock Exchange, Stockholm Stock Exchange, Tallinn Stock Exchange, and NASDAQ OMX Vilnius. It is headquartered in New York City, and its president and chief executive officer is Adena Friedman. The Swedish investment company Investor AB has been a major shareholder since 2011.

Nasdaq, Inc.
Type
Public
Traded asNASDAQ: NDAQ [31]
S&P 500 Component
IndustryFinancial services
FoundedFebruary 8, 1971 (1971-02-08)
HeadquartersOne Liberty Plaza,
New York City, New York
,
Area served
United States, Europe
Key people
Michael R. Splinter (Chairman)
Thomas Martinez (CEO)
ProductsDerivatives, equity trading platforms, futures and options markets, market data, securities exchanges, financial technology and related services
RevenueIncreaseUS$ 4.2 billion (2018)[1]
Operating income
IncreaseUS$ 1.081 billion (2018)
Net income
DecreaseUS$ 458 million (2018)
Total assetsIncreaseUS$ 15.7 billion (2018)
Total equityIncreaseUS$ 45.4 billion (2018)
OwnerInvestor AB/Wallenberg family (majority)
Number of employees
4,099 (2018)
SubsidiariesNASDAQ, OMX
Websitebusiness.nasdaq.com [32]

History

Nasdaq, Inc. is the owner of the NASDAQ listing, founded in 1975.

Merger attempt with 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.[2] 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.[3] 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.[4]

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[5] on February 10, 2007.

Boston and Philadelphia Exchanges purchase

On October 2, 2007, NASDAQ purchased the Boston Stock Exchange. On November 7, NASDAQ announced an agreement to purchase the Philadelphia Stock Exchange.

OMX purchase

On May 25, 2007, NASDAQ agreed to buy OMX, the Swedish-Finnish financial company that controls 7 Nordic and Baltic stock exchanges, for US$3.7 billion to form NASDAQ OMX Group.[6] As of February 27, 2008, the deal was completed.

Sustainable Stock Exchanges initiative

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).[7]

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.[8] NASDAQ OMX completed the purchase on June 3, 2013.[9]

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.[10]

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) [11] held an private auction of share sale. Nasdaq did not participate in the auction due the hostile nature of the bid (held without Oslo Børs boards knowledge or approval). Euronext has won the auction, and later secured another 24,6% of shareholder support, totalling 49.6%. Following, Nasdaq acquired 32.5% shares in open market (mainly from individual shareholders/employees)[12], and submitted a official bid, with unanimous recommendations from board and some key shareholders[13], to acquire remaining shares for 152 NOK, and later increased offer to 158 NOK (or almost 44% premium of Dec 17th, 2018 closing price, to mach Euronext offer)[14], 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 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[15], and Nasdaq had announced on May 25th, 2019 that are pulling out of Oslo Bors battle, handing Euronext victory[16].

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.[17]

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.[18]

Directors Desk

On June 29, 2007, NASDAQ entered into an agreement to acquire DirectorsDesk.com, a management suite for boards of directors.[19]

GlobeNewswire

GlobeNewswire (previously PrimeNewswire) provides press release, editing and wire services. It was founded in 1998 and acquired by NASDAQ OMX in 2006.[20]

SMARTS

On July 27, 2010, NASDAQ OMX Group, Inc. acquired SMARTS Group, the world-leading technology provider of market surveillance solutions to exchanges, regulators and brokers.[21] SMARTS Group had been a private company operating out of Sydney, Australia, incorporating the market analysis software of Michael James Aitken.[22][23] By 2017 SMARTS remained the leading market surveillance software,[24] and was employed by thirteen regulators on forty-five exchanges.[25]

Carpenter Moore

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

References

[1]
Citation Linkfinance.yahoo.com"Nasdaq, Inc. (NDAQ) Income Statement". Finance.yahoo.com. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[2]
Citation Linkwww.wsj.comPatrick, M.; Lucchetti, A.; Reilly, D.; Taylor, E. (2006-04-11). "Nasdaq Acquires 15% of LSE". The Wall Street Journal.
Sep 30, 2019, 12:41 AM
[3]
Citation Linkwww.forbes.com"Scottish Widows says has sold 2.7 mln LSE shares at 1,175 pence". Forbes.com. 2006-04-12.
Sep 30, 2019, 12:41 AM
[4]
Citation Linkwww.bloomberg.comOrtega, E. (2006-04-11). "Nasdaq Buys 15 Percent Stake in LSE for $782 Million". Bloomberg News.
Sep 30, 2019, 12:41 AM
[5]
Citation Linknews.bbc.co.uk"LSE woos Tokyo after US bid fails". BBC News. 2007-02-11.
Sep 30, 2019, 12:41 AM
[6]
Citation Linkbiz.yahoo.com"Nasdaq to buy Nordic bourse group OMX for $3.7 bln". Reuters.com. 2007-05-25.
Sep 30, 2019, 12:41 AM
[7]
Citation Linkwww.reuters.com"Sustainable Stock Exchanges Initiative: Exchanges listing over 4,600 companies commit to promoting sustainability". Reuters.com. Archived from the original on 13 May 2014. Retrieved 13 May 2014.
Sep 30, 2019, 12:41 AM
[8]
Citation Linkwww.ft.com"Nasdaq OMX buys Thomson Reuters units". Financial Times. 2012-12-12. Retrieved 2013-01-30.
Sep 30, 2019, 12:41 AM
[9]
Citation Linkwww.businessweek.com"Nasdaq buys 3 businesses from Thomson Reuters". Bloomberg Businessweek. 2013-06-03. Retrieved 2013-06-06.
Sep 30, 2019, 12:41 AM
[10]
Citation Linkmarketsmedia.com"Nasdaq Launches New Ventures Platform - Markets Media". Marketsmedia.com. Retrieved 2017-05-31.
Sep 30, 2019, 12:41 AM
[11]
Citation Linkwww.bloomberg.com"Bloomberg - Are you a robot?". Bloomberg.com. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[12]
Citation Linkposttrade360.com"Nasdaq buys Oslo Børs shares – after staff sells". Posttrade360.com. 12 April 2019. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[13]
Citation Linkir.nasdaq.com"Nasdaq announces purchases of shares in Oslo Børs VPS". Nasdaq, Inc. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[14]
Citation Linkfinancefeeds.com"Nasdaq hikes its bid for Oslo Bors from NOK 152 to NOK 158 per share". Financefeeds.com. 4 March 2019. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[15]
Citation Linkwww.thetradenews.com"Euronext raises stake in Oslo Børs VPS to support full acquisition offer". Thetradenews.com. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[16]
Citation Linkwww.reuters.com"Nasdaq pulls out of Oslo Bors battle, handing Euronext victory". Reuters.com. 27 May 2019. Retrieved 27 June 2019.
Sep 30, 2019, 12:41 AM
[17]
Citation Linkfinance.yahoo.com"Astana International Financial Centre JSC and Nasdaq Sign Technology Deal for New AIFC Exchange". Finance.yahoo.com.
Sep 30, 2019, 12:41 AM
[18]
Citation Linkwww.ft.com"Nasdaq OMX continues streamlining efforts", Financial Times, January 29, 2013. Retrieved January 30, 2013.
Sep 30, 2019, 12:41 AM
[19]
Citation Linkwww.primenewswire.com"Nasdaq to acquire Directors Desk, a Technology Company for Corporate Boards". primenewswire.com. 2007-06-29. Archived from the original on 2007-09-27.
Sep 30, 2019, 12:41 AM
[20]
Citation Linkwww.globenewswire.com"Overview". NASDAQ OMX GlobeNewswire Overview. GlobeNewswire, Inc. Retrieved 4 September 2012.
Sep 30, 2019, 12:41 AM