Nasdaq OMX Group Inc.
) 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
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 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.
) takeover bid in 2011 and the recent agreement by
) 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
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
Nasdaq currently carries a Zacks Rank #3 (Hold). Another
securities exchange worth consideration is
CBOE Holdings, Inc.
), which carries a Zacks Rank #2 (Buy).
CBOE HOLDINGS (CBOE): Free Stock Analysis
INTERCONTINENTL (ICE): Free Stock Analysis
NASDAQ OMX GRP (NDAQ): Free Stock Analysis
NYSE EURONEXT (NYX): Free Stock Analysis
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