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Nasdaq OMX To License Issuer Services To More International Exchanges



By Jacob Bunge, Of DOW JONES NEWSWIRES

Nasdaq OMX Group Inc. (NDAQ) sees significant opportunity in selling its stable of corporate services to international exchanges, according to the company's chief executive.

The trans-Atlantic exchange operator is in talks with exchanges in Asia and elsewhere after signing a memorandum of understanding with BM&F Bovespa ( BVMF3.BR) that will see the Brazilian exchange company license Nasdaq OMX's corporate services.

"This is one of the ways we can tap into the growth" of developing exchanges, said CEO Bob Greifeld in an interview Thursday.

"There will be other agreements," he said.

Offering up issuer services for Web broadcasting, press-release distribution and investor relations represents a way for Nasdaq OMX to tap into the growth of listed cash equities markets in Latin America, the Middle East and Asia.

Nasdaq OMX has already inked multiyear technology deals with securities exchanges in Japan and Kuwait, part of a global push by major exchanges to forge inroads into new markets.

Extending partnerships to include Nasdaq OMX's issuer services would let international exchanges charge higher listing fees; analysts figure that for BM& F Bovespa, the agreement could see the Brazilian exchange operator boost its revenue from issuers by three to five times.

For Nasdaq OMX, closer ties with foreign issuers could also serve as a roadmap to more international companies listing shares on the Nasdaq Stock Market or its planned junior venue, Nasdaq OMX BX.

Nasdaq OMX on Thursday reported a 3.4% rise in third-quarter earnings as revenue fell 20% to $691 million.

It posted a profit of $60 million, or 28 cents a share, from $58 million, or 27 cents a share, a year earlier.

-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117; jacob.bunge@dowjones.com


  (END) Dow Jones Newswires
  11-05-091208ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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