Expanding its presence in Taiwan,
NASDAQ OMX Group Inc.
) recently announced a Memorandum of Understanding (MoU) with
Dalian Commodity Exchange (DCE), in Dalian, China. The MoU
follows the establishment of the collaboration in order to look
for enhanced business opportunities in the region.
Founded in 1993, DCE is the only futures exchange in Northeast
China, while it ranked 15th among the leading global derivative
exchanges in 2011. It is also one of the four exchanges under the
supervision and administration of the China Securities Regulatory
Meanwhile, both NASDAQ and DCE's decision to join forces is based
on improving the technological initiatives in the region. This
strategic alliance will also pave way for new innovative
techniques to provide greater investment opportunities in these
Additionally, both the exchanges aim to enhance the scope of
exchange business by strengthening the price risk tools along
with sharing information as well as upgrading technology and
consulting services for mutual benefits. These efforts will help
NASDAQ improve its operating leverage and create new revenue
sources in the long run.
NASDAQ has been vigorously focusing on expanding its business
profile through expansion into international markets in an
attempt to counter the competitive forces and gain dynamism. The
company's strategic efforts to enhance fraying market position
are also crucial since the recent reforms in the US has led
arch-rivals in the derivatives space such as
NYSE Euronext Inc.
CME Group Inc.
) to seek greener pastures in the emerging and rapidly developing
economies. This leaves no reason for NASDAQ to lag behind the
However, this is not the first time that NASDAQ has looked to
gain a strong foothold in international markets. Lately,
the company purchased NOS Clearing ASA and disclosed its plan to
build a new interest rate derivative trading platform in London -
known as NLX - by early 2013, thereby expanding its presence in
the European markets. NASDAQ also has a fair presence in the
Middle East through its collaboration with the Dubai bourse.
NASDAQ carries a Zacks Rank #3 that implies a short-term Hold
rating, while the long-term recommendation stands at Neutral.
(We are reissuing this article to correct a mistake. The
original article, issued Wednesday, October 17, 2012, is no
longer to be relied upon.)
CME GROUP INC (CME): Free Stock Analysis
NASDAQ OMX GRP (NDAQ): Free Stock Analysis
NYSE EURONEXT (NYX): Free Stock Analysis
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