Nasdaq combines global data and index businesses

Tue Jan 29, 2013 2:09pm EST
 
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By John McCrank

(Reuters) - Nasdaq OMX Group Inc NDAQ.O said on Tuesday it was combining its global data and index businesses as the trans-Atlantic exchange operator continues to reposition itself to be a bigger player in technology services, a move aimed at boosting non-transaction-based revenues.

John Jacobs will head the new global information services unit, which Nasdaq said will enable it to increase sales through a clearer focus on new product development. Jacobs was formerly Nasdaq's head of indexing and chief marketing officer.

"Combining these business areas allows us to better take advantage of the sweet spot they inherently both share: distribution of data and the delivery of innovative products that provide market insight and transparency," Bob Greifeld, Nasdaq's chief executive, said in a statement.

He said Nasdaq's goal is to become one of the top information providers in the global financial services industry. Competitors in that area include SunGard and Fidessa FDSA.L.

Boosting relatively stable technology- and information-based revenues has become more of a focus in the exchange industry as equity trading volumes hover around multi-year lows.

Nasdaq, which reports its fourth quarter results on Thursday, said the global information services unit will represent around 20 percent of the company's total annual revenues. For 2011, not including transaction rebates, brokerage, clearance and exchange fees, Nasdaq had $1.69 billion in revenues.

Earlier in January, Nasdaq said it would combine its software and market technology units into a business that will generate more than $500 million in annual revenue.

The catalyst for the new software-based segment was Nasdaq's acquisition of Thomson Reuters Corp's investor relations, public relations and multimedia services units for $390 million in December.   Continued...

 
A pedestrian walks past the NASDAQ building in New York City, April 30, 2010. REUTERS/Lucas Jackson