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Nasdaq Launches U.S. Corporate Bond Exchange

Nasdaq Launches U.S. Corporate Bond Exchange

Nasdaq recently announced the launch of a Corporate Bond exchange for listing and trading of corporate bonds, bringing the total number of Nasdaq platform exchanges to 30. The Securities and Exchange Committee approved this exchange on November 13, 2018.

PepsiCo marks the inaugural listing and announced the company will transfer the securities exchange listing for four separate senior notes due between 2021 and 2028. Initially, debt securities for Nasdaq listed companies will be targeted, followed in the second quarter of 2019 by listings for debt securities of non-Nasdaq listed companies.

Ted Bragg, head of U.S. Fixed Income at Nasdaq, said “Nasdaq-listed companies today have underwritten more than 3,000 corporate bonds, and there exists an opportunity for public companies to trade their equity and debt in a more cost effective way, using Nasdaq trading technology and surveillance, is substantial.”

This new exchange will run on the Nasdaq Stock Market license and will be powered by the Nasdaq Financial Framework, similar to its Nasdaq Fixed Income (NFI) platform. Surveillance will be conducted by the Nasdaq Regulatory team, including SMARTS.

Since 2005, in recent years more than 300 companies worth $1.35 trillion in market cap have switched to the Nasdaq Stock Market, including PepsiCo, Newell Brands*, United Airlines, Weight Watchers, Regency Centers, and Workday. Nasdaq is the partner of choice for industry leading companies by offering a superior market model, fair and competitive listing fee structure, unique visibility assets, market intelligence and targeting support. Nasdaq also remains exceptionally focused on issuer advocacy for all public companies, including our initiative to revitalize the U.S. capital markets.

For additional information on listing non-convertible corporate bonds with Nasdaq, please see the Initial Listing Guide.

*Announced as of date of post

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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