Nasdaq Modifies Business Structure - Analyst Blog
30 Gennaio 2013 - 6:20PM
Zacks
Yesterday, Nasdaq OMX Group Inc. (NDAQ)
announced the merger of its Global Data Products and Global Index
businesses to form a new reporting segment – Global Information
Services. The change will be implemented retrospectively from the
beginning of the year.
Both the merging businesses involve data distribution and the
delivery of innovative products aimed at offering transparency and
insight into the market. Thus, combining these should enable Nasdaq
capitalize on the companies’ strengths more efficiently.
The combined business is expected to improve the speed and cost
efficiency of delivering data and indices, using Nasdaq’s recent
technology investments and enhancements. It is also likely to
enhance the company’s customer focus as well as boost the power of
its technology, product innovation and distribution channels.
Nasdaq will utilize its strategic proficiency and product
development skills to expand the new segment further.
Currently, Global Data Products has a client base of 2.5 million
financial professionals and individual investors, spanning 83
countries, in its historical and real-time market data distribution
business. Nasdaq expects the new business segment to generate
almost 20% of the total annual revenues of the company.
The securities exchange aims to become a global leader in
providing information to the financial services industry. However,
over the recent years increased competition has led to a decline in
the company’s market share.
The failure of NYSE Euronext Inc.’s (NYX)
takeover bid in 2011 and the recent agreement by
IntercontinentalExchange Inc. (ICE) to buyout NYSE
Euronext further threatens to diminish the exchange’s size,
competitiveness and global footprint. Thus, Nasdaq needs to boost
its competitive strength through both organic and inorganic growth.
The streamlining of operations to enhance efficiency is therefore a
prudent step in our opinion.
The new segment will be managed by Nasdaq’s Executive Vice
President, John L. Jacobs, who earlier handled the Global Index
Group and also served as the Chief Marketing Officer (CMO) of the
holding company. Consequently, the position of CMO as well as
Senior Vice President will be awarded to Jeremy Skule, who was
previously the Senior Vice President of Global Marketing and
Communications.
Nasdaq currently carries a Zacks Rank #3 (Hold). Another
securities exchange worth consideration is CBOE Holdings,
Inc. (CBOE), which carries a Zacks Rank #2 (Buy).
CBOE HOLDINGS (CBOE): Free Stock Analysis Report
INTERCONTINENTL (ICE): Free Stock Analysis Report
NASDAQ OMX GRP (NDAQ): Free Stock Analysis Report
NYSE EURONEXT (NYX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024