In an effort to explore the European market,
NASDAQ OMX Group Inc.
) has purchased NOS Clearing ASA, a Norwegian commodities clearing
house, Reuters reported earlier this week. The terms of the deal
The news of this acquisition comes on the heels of NASDAQ's
plans to build a new interest rate derivative trading platform -
NASDAQ NLX - in London. The trading platform is scheduled to debut
by the first quarter of 2013.
NASDAQ is aggressively making efforts to expand its presence in
Europe. The company believes that adding another operating arm in
this region will help it to move a step closer towards
strengthening its international presence in the energy sector.
NASDAQ has been performing quite well over the few weeks which
is reflected in its improving share prices. The stock has gained 7%
over the last two weeks to close at $ 22.76 on Tuesday, July 3.
The company's improving cash position also supports the
acquisitions undertaken by it. Its cash and cash equivalents
improved 19.6% year over year to $525 million as of March 31,
NASDAQ has been facing intense competition with the recent wave
of M&A activities in the stock exchange industry. Keeping pace
with the company's operations, its closest competitor,
NYSE Euronext Inc.
), is also expanding its market presence in Europe. It announced
the launch of its regulated exchange for international listing,
NYSE Euronext London, late last week.
We believe, going ahead, increased competition can severely
hamper growth in trading activities and the markets for the
company's products, thereby adversely affecting its operating
NASDAQ currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We maintain a long-term Underperform
rating on the shares of the company.
NASDAQ OMX GRP (NDAQ): Free Stock Analysis
NYSE EURONEXT (NYX): Free Stock Analysis Report
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