Nasdaq, Inc. (Nasdaq:NDAQ) today reported financial results for the
first quarter of 2017. First quarter net revenues were $583
million, up $49 million or 9% from $534 million in the prior year
period. The first quarter increase in net revenues included a
$50 million positive impact from acquisitions and $15 million, or
5%, organic growth in non-trading segments, partially offset by a
$12 million organic decline in Market Services net revenues driven
by lower industry trading volumes, as well as an overall $4 million
impact from unfavorable changes in foreign exchange rates.
“I'm pleased Nasdaq was able to set new highs in terms of
operating income and EPS, and deliver continued strong organic
revenue growth across the non-transactional businesses, despite a
challenging trading volume environment,” said Adena T.
Friedman, President and CEO, Nasdaq. “Importantly, we are
seeing growth in areas where we've invested materially to innovate
for the benefit of our clients, bringing them new or enhanced
capabilities and efficiencies, in particular in the Market
Technology, Information Services and Corporate Solutions
businesses.”
Ms. Friedman continued, “We have made
significant early progress towards our 2017 execution
priorities. We have improved our competitive position, as
evidenced by higher market share in several key trading markets,
progressed on our acquisition integrations, and continued our
efforts to commercialize key disruptive technologies, as
illustrated by early sales success of the Nasdaq Financial
Framework, our next generation Market Technology offering."
GAAP operating expenses were $335 million in the first quarter
of 2017, up $20 million from $315 million in the first quarter of
2016. The increase primarily reflects incremental operating
expenses from the acquisitions closed in 2016.
Non-GAAP operating expenses were $306 million in the first
quarter of 2017, up $26 million from $280 million in the first
quarter of 2016. This increase reflects $22 million of incremental
operating expenses from the acquisitions closed in 2016 as well as
$7 million due to organic growth, partially offset by a $3 million
favorable impact from foreign exchange rate changes.
“We are making significant progress executing against our
acquisition integration plans, and we remain on pace to hit our
synergy target of $60 million by the end of 2017,” said
Michael Ptasznik, Executive Vice President and Chief
Financial Officer, Nasdaq.
Mr. Ptasznik continued, “We are continuing
Nasdaq's strong track record on capital returns to shareholders
with the announced 19% increase in our quarterly dividend and
material first quarter share repurchases, the latter expected to
largely offset the dilutive impact of equity-based compensation and
other commitments in 2017.”
1 Represents revenues less transaction-based expenses.
2 Represents revenues from our Corporate Services, Information
Services and Market Technology segments, as well as our Trade
Management Services business.
3 Refer to our reconciliations of U.S. GAAP to non-GAAP net
income (loss), diluted earnings (loss) per share, operating income
and operating expenses, and total variance impact analysis included
in the attached schedules.
4 Represents revenues from our Corporate Services, Information
Services and Market Technology segments.
On a GAAP basis, net income attributable to Nasdaq for the first
quarter of 2017 was $169 million, or $0.99 per diluted share,
compared with net income of $132 million, or $0.78 per diluted
share, in the first quarter of 2016.
On a non-GAAP basis, net income attributable to Nasdaq for the
first quarter of 2017 was $187 million, or $1.10 per diluted share,
compared with $153 million, or $0.91 per diluted share, in the
first quarter of 2016.
As discussed on our prior quarterly call, both GAAP and non-GAAP
net income and EPS comparisons to the prior year period benefited
from the 2017 adoption of ASU 2016-091, which in the first quarter
of 2017 reduced the effective tax rate on our income statement,
adding $0.13 to diluted EPS for the first quarter of 2017.
Cash tax payments were not affected by the change.
During the first quarter of 2017, the company repurchased 2.2
million shares of common stock for a total cost of $156
million. As of March 31, 2017, there was $273 million
remaining under the board authorized share repurchase program.
At March 31, 2017, the company had cash and cash equivalents of
$386 million and total debt of $3,621 million, resulting in net
debt of $3,235 million. This compares to net debt of $3,200 million
at December 31, 2016.
DEBT RESTRUCTURING - Nasdaq announced it will
redeem all of its outstanding 5.25% senior notes maturing January
2018 on May 26, 2017. The notes will be redeemed using a
combination of cash on hand and proceeds from the sale of
commercial paper issued through Nasdaq's newly established
commercial paper program. Additionally, the company entered
into an agreement for a $1 billion five-year revolving credit
facility, which replaces its existing $750 million revolving credit
facility. Nasdaq intends to use funds available under the
revolving credit facility for general corporate purposes and to
provide liquidity support for the repayment of commercial paper
issued through its commercial paper program.
2017 EXPENSE GUIDANCE2 - The company is
lowering its 2017 non-GAAP operating expense guidance to $1,260 to
$1,300 million, versus prior 2017 guidance of $1,260 to $1,310
million.
1 In the first quarter of 2017, we adopted new accounting
guidance which requires us to recognize the tax effect related to
the vesting of share-based awards in income tax expense in the
statements of income rather than in equity.
2 U.S. GAAP operating expense guidance is not provided due to
the inherent difficulty in quantifying certain amounts due to a
variety of factors including the unpredictability in the movement
in foreign currency rates, as well as future charges or reversals
outside of the normal course of business.
BUSINESS HIGHLIGHTS
Market Services (37% of total net revenues) -
Net revenues were $218 million in the first quarter of 2017, up $17
million when compared to the first quarter of 2016.
Equity Derivatives (12% of total net revenues)
- Net equity derivative trading and clearing revenues were
$68 million in the first quarter of 2017, up $20 million compared
to the first quarter of 2016. The increase is primarily due to the
inclusion of revenues from the acquisition of ISE in June 2016.
Cash Equities (10% of total net revenues) - Net
cash equity trading revenues were $61 million in the first quarter
of 2017, down $9 million from the first quarter of 2016. This
decrease primarily reflects lower industry trading volumes,
partially offset by the inclusion of net revenues associated with
the acquisition of Nasdaq CXC in February 2016.
Fixed Income and Commodities Trading and Clearing (3% of
total net revenues) - Net fixed income and commodities
trading and clearing (FICC) revenues were $19 million in the first
quarter of 2017, down $1 million from the first quarter of
2016.
Trade Management Services (12% of total net revenues)
- Trade management services revenues were$70 million in
the first quarter of 2017, up $7 million compared to the first
quarter of 2016, due to the inclusion of revenue from the
acquisition of ISE and an increase in customer demand for network
connectivity.
Corporate Services (27% of total net revenues)
- Revenues were $160 million in the first quarter of 2017,
up $17 million compared to the first quarter of 2016.
Corporate Solutions (16% of total net revenues)
- Corporate solutions revenues were $95 million in the
first quarter of 2017, up $18 million from the first quarter of
2016. The increase was due to the inclusion of $16 million of
revenues from the Marketwired and Boardvantage acquisitions and $2
million of organic revenue growth, primarily in public and investor
relations.
Listing Services (11% of total net revenues) -
Listing services revenues were $65 million in the first quarter of
2017, down $1 million from the first quarter of 2016. The
revenue decrease was primarily due to a $1 million negative impact
from foreign exchange rate changes.
Information Services (24% of total net revenues)
- Revenues were $138 million in the first quarter of 2017,
up $5 million from the first quarter of 2016.
Data Products (19% of total net revenues) -
Data products revenues were $108 million in the first quarter of
2017, up $3 million compared to the first quarter of 2016 primarily
due to growth in proprietary data products revenues and the
inclusion of revenues from the acquisition of ISE.
Index Licensing and Services (5% of total net
revenues) - Index licensing and services revenues were $30
million in the first quarter of 2017, up $2 million from the first
quarter of 2016. The revenue increase is due to the inclusion
of revenues from the ISE acquisition and higher assets under
management in exchange traded products linked to Nasdaq indexes,
partially offset by lower revenue from derivative products
licensing Nasdaq indexes due to lower trading volumes.
Market Technology (12% of total net revenues) -
Revenues were $67 million in the first quarter of 2017, up $10
million from the first quarter of 2016. The increase
primarily reflects organic revenue growth during the period from
software licensing and support, surveillance, and BWise
advisory. New order intake totaled $47 million in the first
quarter of 2017, up $25 million from the first quarter of 2016,
while total order value was $777 million at March 31, 2017, down 1%
from March 31, 2016.
CORPORATE HIGHLIGHTS
- Market Services achieves market share increases in U.S.
equities, U.S. options, and Nordic equities in the first quarter of
2017. Nasdaq achieved sequential market share gains
in the first quarter of 2017 compared to the fourth quarter of 2016
in its largest trading businesses, including U.S. options, U.S.
equities, and Nordic equities. Nasdaq's U.S. options market
share increased to 42.5% in the first quarter of 2017 versus 39.2%
in the fourth quarter of 20161. U.S. equities market share
improved to 17.6% in the first quarter of 2017 versus 17.2% in the
fourth quarter of 20162, while Nordic equities market share
increased to 66.8% in the first quarter of 2017 versus 65.1% in the
fourth quarter of 2016.
- Market Technology order intake totaled $47 million in
the first quarter of 2017. Order intake of $47
million in the first quarter of 2017 included extending and
expanding relationships across multiple clients. Nasdaq
announced that Hong Kong Exchange and Clearing Limited (HKEX) will
upgrade infrastructure of its main derivatives market across
trading, clearing, and real-time risk management. Another
notable contract win came with NEX Group, which is incorporating
SMARTS Market Surveillance into its leading foreign exchange
platform.
- The Nasdaq Stock Market led U.S. exchanges for
IPOs. In the U.S. market, The Nasdaq Stock Market welcomed
42 new listings during the first quarter of 2017, 17 of which were
IPOs including Presidio, Hamilton Lane, and Laureate
Education. During the first quarter, The Nasdaq Stock Market
won 52% of IPO listings, and 67% over the twelve months ending
March 31, 2017. The Nasdaq Stock Market also announced 7 new
ETP listings in the first quarter of 2017, bringing total ETP
listings on The Nasdaq Stock Market to 332 at March 31, 2017,
representing a 38% increase versus the first quarter of
2016.
- Nasdaq saw strong growth and record ETP assets under
management tracking Nasdaq indexes. Overall assets under
management (AUM) in ETPs benchmarked to Nasdaq's proprietary index
families increased 31% to a record $138 billion as of March 31,
2017 compared to March 31, 2016, including $59 billion, or 42%,
tracking smart beta indexes. Also as of March 31, 2017,
the number of ETPs tracking Nasdaq-licensed indexes rose to 306, an
increase of 35%, compared to 226 at March 31, 2016.
- Nasdaq Private Market completes first auction based
transaction in partnership interests and expands into alternative
investment fund liquidity. Nasdaq Private Market
(NPM) announced the launch of NPM Alternatives, a new business line
designed to address the challenge of liquidity in alternative
investment funds. NPM Alternatives will bring together
participants including fund managers, financial advisors, investors
and secondary liquidity providers to facilitate regular,
auction-based liquidity events for alternative investment
funds. NPM will initially support secondary liquidity for
private equity feeder funds as well as funds registered under the
Investment Company Act of 1940 and plans to accommodate a variety
of fund vehicles over time.
- NFX growth continues Nasdaq's commodities
expansion. NFX, a U.S.-based derivatives market for key
energy benchmarks, continues to expand. In April 2017, open
interest in NFX products reached a daily peak of 2.3 million
contracts across key product segments including natural gas and
power options and futures, up from a daily peak of 800 thousand
contracts in April 2016. During the first quarter of 2017,
average daily volume (ADV) was 213,000 contracts, an increase of
184% from 75,000 contracts per day in the first quarter of
2016. Since its July 2015 inception, 145 firms have traded on
NFX.
1 For the first quarter of 2017, the combined matched
market share consisted of 17.1% at Nasdaq PHLX, 9.5% at The Nasdaq
Options Market, 0.7% at Nasdaq BX, 9.5% at Nasdaq ISE, 5.6% at
Nasdaq GEMX and 0.1% at Nasdaq MRX. For the fourth quarter of 2016,
the combined matched market share consisted of 15.7% at Nasdaq
PHLX, 8.6% at The Nasdaq Options Market, 0.7% at Nasdaq BX, 11.2%
at Nasdaq ISE, 2.8% at Nasdaq GEMX and 0.2% at Nasdaq MRX.
2 For the first quarter of 2017, the combined matched
market share consisted of 14.0% at The Nasdaq Stock Market, 2.7% at
Nasdaq BX and 0.9% at Nasdaq PSX. For the fourth quarter of 2016,
the combined matched market share consisted of 13.6% at The Nasdaq
Stock Market, 2.6% at Nasdaq BX and 1.0% at Nasdaq PSX
ABOUT NASDAQ
Nasdaq (Nasdaq:NDAQ) is a leading global provider of trading,
clearing, exchange technology, listing, information and public
company services. Through its diverse portfolio of solutions,
Nasdaq enables customers to plan, optimize and execute their
business vision with confidence, using proven technologies that
provide transparency and insight for navigating today's global
capital markets. As the creator of the world's first electronic
stock market, its technology powers more than 89 marketplaces in 50
countries, and 1 in 10 of the world's securities transactions.
Nasdaq is home to 3,800 total listings with a market value of $11.0
trillion. To learn more, visit: nasdaq.com/ambition or
business.nasdaq.com.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with
U.S. GAAP, Nasdaq also discloses certain non-GAAP results of
operations, including, but not limited to, net income attributable
to Nasdaq, diluted earnings per share, operating income, and
operating expenses, that include certain adjustments or exclude
certain charges and gains that are described in the reconciliation
table of U.S. GAAP to non-GAAP information provided at the end of
this release. Management uses this non-GAAP information internally,
along with U.S. GAAP information, in evaluating our performance and
in making financial and operational decisions. We believe our
presentation of these measures provides investors with greater
transparency and supplemental data relating to our financial
condition and results of operations. In addition, we believe the
presentation of these measures is useful to investors for
period-to-period comparisons of results as the items described
below do not reflect ongoing operating performance.
These measures are not in accordance with, or an alternative to,
U.S. GAAP, and may be different from non-GAAP measures used by
other companies. Investors should not rely on any single financial
measure when evaluating our business. We recommend investors review
the U.S. GAAP financial measures included in this earnings release.
When viewed in conjunction with our U.S. GAAP results and the
accompanying reconciliations, we believe these non-GAAP measures
provide greater transparency and a more complete understanding of
factors affecting our business than U.S. GAAP measures alone.
We understand that analysts and investors regularly rely on
non-GAAP financial measures, such as non-GAAP net income
attributable to Nasdaq, non-GAAP diluted earnings per share,
non-GAAP operating income and non-GAAP operating expenses to assess
operating performance. We use these measures because they highlight
trends more clearly in our business that may not otherwise be
apparent when relying solely on U.S. GAAP financial measures, since
these measures eliminate from our results specific financial items,
such as those described below, that have less bearing on our
ongoing operating performance.
Amortization expense of acquired intangible assets: We amortize
intangible assets acquired in connection with various acquisitions.
Intangible asset amortization expense can vary from period to
period due to episodic acquisitions completed, rather than from our
ongoing business operations. As such, if intangible asset
amortization is included in performance measures, it is more
difficult to assess the day-to-day operating performance of the
businesses, the relative operating performance of the businesses
between periods and the earnings power of Nasdaq. Management does
not consider intangible asset amortization expense for the purpose
of evaluating the performance of our business or its managers or
when making decisions to allocate resources. Therefore, we believe
performance measures excluding intangible asset amortization
expense provide investors with a more useful representation of our
businesses’ ongoing activity in each period.
Restructuring charges: Restructuring charges are associated with
our 2015 restructuring plan to improve performance, cut costs and
reduce spending and as of March 31, 2016 are primarily related to
(i) severance and other termination benefits, (ii) asset impairment
charges, and (iii) other charges. We exclude these restructuring
costs because these costs do not reflect future operating expenses
and do not contribute to a meaningful evaluation of Nasdaq’s
ongoing operating performance or comparison of Nasdaq’s performance
between periods.
Merger and strategic initiatives expense: We have pursued
various strategic initiatives and completed a number of
acquisitions in recent years which have resulted in expenses which
would not have otherwise been incurred. These expenses generally
include integration costs, as well as legal, due diligence and
other third party transaction costs. The frequency and the amount
of such expenses vary significantly based on the size, timing and
complexity of the transaction. Accordingly, we exclude these costs
for purposes of calculating non-GAAP measures which provide a more
meaningful analysis of Nasdaq’s ongoing operating performance or
comparisons in Nasdaq’s performance between periods.
Asset impairment charges: Intangible assets that have indefinite
lives are reviewed for impairment at least annually, or when
indicators of impairment are present. For the quarter ended
December 31, 2016, we recorded a pre-tax, non-cash asset impairment
charge of $578 million related to the eSpeed trade name. The
impairment charge was the result of a decline in operating
performance and the rebranding of the trade name due to a strategic
change in the direction of our Fixed Income business.
Other significant items: We have excluded certain other charges
or gains that are the result of other non-comparable events to
measure operating performance. For 2016, other significant items
primarily included accelerated expense due to the retirement of the
company’s former CEO for equity awards previously granted, a
regulatory fine received by our exchange in Stockholm and Nasdaq
Clearing, a sublease loss reserve on space we currently occupy due
to excess capacity, and the impact of the write-off of an equity
method investment, partially offset by a gain resulting from the
sale of a percentage of a separate equity method investment.
Foreign exchange impact: In countries with currencies other than
the U.S. dollar, revenues and expenses are translated using monthly
average exchange rates. Certain discussions in this release isolate
the impact of year-over-year foreign currency fluctuations to
better measure the comparability of operating results between
periods. Operating results excluding the impact of foreign currency
fluctuations are calculated by translating the current period’s
results by the prior period’s exchange rates.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
Information set forth in this communication contains
forward-looking statements that involve a number of risks and
uncertainties. Nasdaq cautions readers that any forward-looking
information is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking information. Such forward-looking statements
include, but are not limited to (i) projections relating to our
future financial results, total shareholder returns, growth,
trading volumes, products and services, order backlog, taxes and
achievement of synergy targets, (ii) statements about the closing
or implementation dates and benefits of certain acquisitions and
other strategic, restructuring, technology, de-leveraging and
capital return initiatives, (iii) statements about our integrations
of our recent acquisitions, (iv) statements relating to any
litigation or regulatory or government investigation or action to
which we are or could become a party, and (v) other statements that
are not historical facts. Forward-looking statements involve a
number of risks, uncertainties or other factors beyond Nasdaq’s
control. These factors include, but are not limited to, Nasdaq’s
ability to implement its strategic initiatives, economic, political
and market conditions and fluctuations, government and industry
regulation, interest rate risk, U.S. and global competition, and
other factors detailed in Nasdaq’s filings with the U.S. Securities
and Exchange Commission, including its annual reports on Form 10-K
and quarterly reports on Form 10-Q which are available on Nasdaq’s
investor relations website at http://ir.nasdaq.com and the
SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise.
WEBSITE DISCLOSURE
Nasdaq intends to use its website, ir.nasdaq.com, as a means for
disclosing material non-public information and for complying with
SEC Regulation FD and other disclosure obligations. These
disclosures will be included on Nasdaq’s website under “Investor
Relations.”
NDAQF
Nasdaq,
Inc. |
Condensed Consolidated
Statements of Income (Loss) |
(in millions, except
per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
March
31, |
|
December
31, |
|
March
31, |
|
2017 |
|
2016 |
|
2016 |
Revenues: |
|
|
|
|
|
Market
Services |
$ |
606 |
|
|
$ |
594 |
|
|
$ |
572 |
|
Transaction-based
expenses: |
|
|
|
|
|
Transaction
rebates |
|
(301 |
) |
|
|
(286 |
) |
|
|
(283 |
) |
Brokerage,
clearance and exchange fees |
|
(87 |
) |
|
|
(88 |
) |
|
|
(88 |
) |
Total Market
Services revenues less transaction-based expenses |
|
218 |
|
|
|
220 |
|
|
|
201 |
|
|
|
|
|
|
|
Corporate
Services |
|
160 |
|
|
|
167 |
|
|
|
143 |
|
Information
Services |
|
138 |
|
|
|
135 |
|
|
|
133 |
|
Market
Technology |
|
67 |
|
|
|
77 |
|
|
|
57 |
|
|
|
|
|
|
|
Revenues less transaction-based
expenses |
|
583 |
|
|
|
599 |
|
|
|
534 |
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
Compensation and
benefits |
|
161 |
|
|
|
180 |
|
|
|
152 |
|
Professional and
contract services |
|
36 |
|
|
|
43 |
|
|
|
35 |
|
Computer
operations and data communications |
|
30 |
|
|
|
31 |
|
|
|
25 |
|
Occupancy |
|
23 |
|
|
|
24 |
|
|
|
20 |
|
General,
administrative and other |
|
19 |
|
|
|
22 |
|
|
|
14 |
|
Marketing and
advertising |
|
7 |
|
|
|
7 |
|
|
|
6 |
|
Depreciation and
amortization |
|
45 |
|
|
|
45 |
|
|
|
38 |
|
Regulatory |
|
8 |
|
|
|
14 |
|
|
|
7 |
|
Merger and
strategic initiatives |
|
6 |
|
|
|
20 |
|
|
|
9 |
|
Restructuring
charges |
|
- |
|
|
|
- |
|
|
|
9 |
|
Total operating
expenses |
|
335 |
|
|
|
386 |
|
|
|
315 |
|
|
|
|
|
|
|
Operating
income |
|
248 |
|
|
|
213 |
|
|
|
219 |
|
|
|
|
|
|
|
Interest
income |
|
2 |
|
|
|
1 |
|
|
|
1 |
|
Interest
expense |
|
(37 |
) |
|
|
(37 |
) |
|
|
(28 |
) |
Asset impairment
charges |
|
- |
|
|
|
(578 |
) |
|
|
- |
|
Other investment
income |
|
- |
|
|
|
- |
|
|
|
1 |
|
Net income (loss)
from unconsolidated investees |
|
4 |
|
|
|
(3 |
) |
|
|
2 |
|
Income (loss) before income
taxes |
|
217 |
|
|
|
(404 |
) |
|
|
195 |
|
Income tax
provision (benefit) |
|
48 |
|
|
|
(180 |
) |
|
|
63 |
|
Net income (loss) attributable to
Nasdaq |
$ |
169 |
|
|
$ |
(224 |
) |
|
$ |
132 |
|
|
|
|
|
|
|
Per share
information: |
|
|
|
|
|
Basic earnings
(loss) per share |
$ |
1.02 |
|
|
$ |
(1.35 |
) |
|
$ |
0.80 |
|
Diluted earnings
(loss) per share |
$ |
0.99 |
|
|
$ |
(1.35 |
) |
|
$ |
0.78 |
|
Cash dividends
declared per common share |
$ |
0.32 |
|
|
$ |
0.32 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
Weighted-average common shares
outstanding |
|
|
|
|
|
for earnings (loss) per
share: |
|
|
|
|
|
Basic |
|
166.5 |
|
|
|
165.8 |
|
|
|
164.3 |
|
Diluted (1) |
|
170.2 |
|
|
|
165.8 |
|
|
|
168.4 |
|
|
|
|
|
|
|
(1) Due to the net loss for the quarter ended December 31,
2016, the diluted earnings (loss) per share calculation excludes
5.7 million of employee stock awards as they were
antidilutive. |
Nasdaq, Inc. |
Revenue Detail |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
March
31, |
|
December
31, |
|
March
31, |
|
2017 |
|
2016 |
|
2016 |
MARKET
SERVICES REVENUES |
|
|
|
|
|
Equity Derivative Trading and Clearing
Revenues |
$ |
191 |
|
|
$ |
173 |
|
|
$ |
101 |
|
Transaction-based expenses: |
|
|
|
|
|
Transaction rebates |
|
(113 |
) |
|
|
(97 |
) |
|
|
(48 |
) |
Brokerage, clearance and exchange fees |
|
(10 |
) |
|
|
(8 |
) |
|
|
(5 |
) |
Total net equity derivative trading
and clearing revenues |
|
68 |
|
|
|
68 |
|
|
|
48 |
|
|
|
|
|
|
|
Cash Equity Trading Revenues |
|
320 |
|
|
|
326 |
|
|
|
382 |
|
Transaction-based expenses: |
|
|
|
|
|
Transaction rebates |
|
(183 |
) |
|
|
(185 |
) |
|
|
(230 |
) |
Brokerage, clearance and exchange fees |
|
(76 |
) |
|
|
(79 |
) |
|
|
(82 |
) |
Total net cash equity trading
revenues |
|
61 |
|
|
|
62 |
|
|
|
70 |
|
|
|
|
|
|
|
Fixed Income and Commodities Trading and Clearing
Revenues |
|
25 |
|
|
|
25 |
|
|
|
26 |
|
Transaction-based expenses: |
|
|
|
|
|
Transaction rebates |
|
(5 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Brokerage, clearance and exchange fees |
|
(1 |
) |
|
|
(1 |
) |
|
|
(1 |
) |
Total net fixed income and
commodities trading and clearing revenues |
|
19 |
|
|
|
20 |
|
|
|
20 |
|
|
|
|
|
|
|
Trade Management Services Revenues |
|
70 |
|
|
|
70 |
|
|
|
63 |
|
|
|
|
|
|
|
Total Net Market Services revenues |
|
218 |
|
|
|
220 |
|
|
|
201 |
|
|
|
|
|
|
|
CORPORATE
SERVICES REVENUES |
|
|
|
|
|
Corporate Solutions revenues |
|
95 |
|
|
|
98 |
|
|
|
77 |
|
Listings Services revenues |
|
65 |
|
|
|
69 |
|
|
|
66 |
|
|
|
|
|
|
|
Total Corporate Services revenues |
|
160 |
|
|
|
167 |
|
|
|
143 |
|
|
|
|
|
|
|
INFORMATION SERVICES REVENUES |
|
|
|
|
|
Data Products revenues |
|
108 |
|
|
|
105 |
|
|
|
105 |
|
Index Licensing and Services revenues |
|
30 |
|
|
|
30 |
|
|
|
28 |
|
|
|
|
|
|
|
Total Information Services revenues |
|
138 |
|
|
|
135 |
|
|
|
133 |
|
|
|
|
|
|
|
MARKET TECHNOLOGY REVENUES |
|
67 |
|
|
|
77 |
|
|
|
57 |
|
|
|
|
|
|
|
Revenues less transaction-based
expenses |
$ |
583 |
|
|
$ |
599 |
|
|
$ |
534 |
|
|
|
|
|
|
|
Nasdaq, Inc. |
Condensed Consolidated Balance
Sheets |
(in millions) |
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2017 |
|
2016 |
Assets |
|
(unaudited) |
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
386 |
|
|
$ |
403 |
|
|
Restricted
cash |
|
78 |
|
|
|
15 |
|
|
Financial
investments, at fair value |
|
220 |
|
|
|
245 |
|
|
Receivables, net |
|
467 |
|
|
|
429 |
|
|
Default
funds and margin deposits |
|
3,633 |
|
|
|
3,301 |
|
|
Other
current assets |
|
163 |
|
|
|
167 |
|
Total
current assets |
|
4,947 |
|
|
|
4,560 |
|
Property
and equipment, net |
|
376 |
|
|
|
362 |
|
Deferred
tax assets |
|
617 |
|
|
|
717 |
|
Goodwill |
|
|
6,070 |
|
|
|
6,027 |
|
Intangible
assets, net |
|
2,082 |
|
|
|
2,094 |
|
Other
non-current assets |
|
398 |
|
|
|
390 |
|
Total
assets |
$ |
14,490 |
|
|
$ |
14,150 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
|
Accounts
payable and accrued expenses |
$ |
187 |
|
|
$ |
175 |
|
|
Section 31
fees payable to SEC |
|
81 |
|
|
|
108 |
|
|
Accrued
personnel costs |
|
110 |
|
|
|
207 |
|
|
Deferred
revenue |
|
322 |
|
|
|
162 |
|
|
Other
current liabilities |
|
174 |
|
|
|
129 |
|
|
Default
funds and margin deposits |
|
3,633 |
|
|
|
3,301 |
|
|
Current
portion of debt obligations |
|
379 |
|
|
|
- |
|
Total
current liabilities |
|
4,886 |
|
|
|
4,082 |
|
Debt
obligations |
|
3,242 |
|
|
|
3,603 |
|
Deferred
tax liabilities |
|
702 |
|
|
|
720 |
|
Non-current
deferred revenue |
|
164 |
|
|
|
171 |
|
Other
non-current liabilities |
|
144 |
|
|
|
144 |
|
Total
liabilities |
|
9,138 |
|
|
|
8,720 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
Equity |
|
|
|
|
Nasdaq
stockholders' equity: |
|
|
|
|
Common
stock |
|
2 |
|
|
|
2 |
|
|
Additional
paid-in capital |
|
2,963 |
|
|
|
3,104 |
|
|
Common
stock in treasury, at cost |
|
(221 |
) |
|
|
(176 |
) |
|
Accumulated
other comprehensive loss |
|
(987 |
) |
|
|
(979 |
) |
|
Retained
earnings |
|
3,595 |
|
|
|
3,479 |
|
Total
Nasdaq stockholders' equity |
|
5,352 |
|
|
|
5,430 |
|
Total
liabilities and equity |
$ |
14,490 |
|
|
$ |
14,150 |
|
|
|
|
|
|
|
Nasdaq, Inc. |
Reconciliation of U.S. GAAP Net Income (Loss),
Diluted Earnings (Loss) Per Share, Operating Income
and |
Operating Expenses to Non-GAAP Net Income,
Diluted Earnings Per Share, Operating Income, and Operating
Expenses |
(in millions, except per share
amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March
31, |
|
December
31, |
|
March
31, |
|
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
|
U.S. GAAP net
income (loss) attributable to Nasdaq |
|
$ |
169 |
|
|
$ |
(224 |
) |
|
$ |
132 |
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense of acquired intangible assets (1) |
|
|
23 |
|
|
|
23 |
|
|
|
17 |
|
Merger
and strategic initiatives (2) |
|
|
6 |
|
|
|
20 |
|
|
|
9 |
|
Restructuring charges (3) |
|
|
- |
|
|
|
- |
|
|
|
9 |
|
Asset
impairment charges (4) |
|
|
- |
|
|
|
578 |
|
|
|
- |
|
Regulatory matter (5) |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Executive
compensation (6) |
|
|
- |
|
|
|
12 |
|
|
|
- |
|
Sublease
loss reserve (7) |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Other
(8) |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Total
non-GAAP adjustments |
|
|
29 |
|
|
|
646 |
|
|
|
35 |
|
|
|
|
|
|
|
|
Non-GAAP
adjustment to the income tax provision (9) |
|
|
(11 |
) |
|
|
(261 |
) |
|
|
(14 |
) |
Total
non-GAAP adjustments, net of tax |
|
|
18 |
|
|
|
385 |
|
|
|
21 |
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Nasdaq |
|
$ |
187 |
|
|
$ |
161 |
|
|
$ |
153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP
diluted earnings (loss) per share |
|
$ |
0.99 |
|
|
$ |
(1.35 |
) |
|
$ |
0.78 |
|
Adjustment to GAAP loss per share to include fully diluted weighted
average shares |
|
|
- |
|
|
|
0.03 |
|
|
|
- |
|
Total
adjustments from non-GAAP net income above |
|
|
0.11 |
|
|
|
2.27 |
|
|
|
0.13 |
|
|
|
|
|
|
|
|
Non-GAAP
diluted earnings per share |
|
$ |
1.10 |
|
|
$ |
0.95 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
Weighted-average diluted common
shares outstanding |
|
|
|
|
|
|
for earnings (loss) per
share: |
|
|
170.2 |
|
|
|
169.3 |
|
|
|
168.4 |
|
|
|
|
|
|
|
|
(1) Refer
to the non-GAAP information section of the earnings release for
further discussion of why we consider amortization expense of
acquired intangible assets to be a non-GAAP adjustment. (2)
For the three months ended March 31, 2017 and December 31, 2016,
merger and strategic initiatives expense primarily related to our
acquisitions of International Securities Exchange, or ISE, and
Boardvantage, Inc and other strategic initiatives. For the
three months ended March 31, 2016, merger and strategic initiatives
expense primarily related to our acquisitions of Nasdaq CXC and
Marketwired L.P. Refer to the non-GAAP information section of the
earnings release for further discussion on why we consider merger
and strategic initiatives expense to be a non-GAAP
adjustment. (3) Restructuring charges for the three months
ended March 31, 2016 are associated with our 2015 restructuring
plan to improve performance, cut costs, and reduce spending and are
primarily related to severance and other termination benefits,
asset impairment charges and other charges. In June 2016, we
completed our 2015 restructuring plan. Refer to the non-GAAP
information section of the earnings release for further discussion
of why we consider restructuring charges to be a non-GAAP
adjustment.(4) For the three months ended December 31, 2016, we
recorded a pre-tax, non-cash intangible asset impairment charge of
$578 million related to the full write-off of the eSpeed trade
name. The impairment charge was the result of a decline in
operating performance and the rebranding of our Fixed Income
business. Refer to the non-GAAP information section of the earnings
release for further discussion of why we consider asset impairment
charges to be a non-GAAP adjustment. (5) In December 2016, we
were issued a $6 million fine by the Swedish Financial Supervisory
Authority, or SFSA, as a result of findings in connection with its
investigations of cybersecurity processes at our Nordic exchanges
and clearinghouse. The SFSA’s conclusions related to governance
issues rather than systems and platform security. We have appealed
the SFSA's decision, including the amount of the fine. This
charge is included in regulatory expense in the Condensed
Consolidated Statements of Income (Loss) for the three months ended
December 31, 2016.(6) For the three months ended December 31, 2016,
we recorded $12 million in accelerated expense due to the
retirement of the company’s former CEO for equity awards previously
granted.(7) For the three months ended December 31, 2016, we
established a sublease loss reserve on space we currently occupy
due to excess capacity. (8) Other charges primarily include
the impact of the write-off of an equity method investment,
partially offset by a gain resulting from the sale of a percentage
of a separate equity method investment. We recorded the net loss in
net income (loss) from unconsolidated investees in the Condensed
Consolidated Statements of Income (Loss) for the three months ended
December 31, 2016.(9) The non-GAAP adjustment to the income tax
provision primarily includes the tax impact of each non-GAAP
adjustment. |
Nasdaq, Inc. |
Reconciliation of U.S. GAAP Net Income (Loss),
Diluted Earnings (Loss) Per Share, Operating Income
and |
Operating Expenses to Non-GAAP Net Income,
Diluted Earnings Per Share, Operating Income, and Operating
Expenses |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March
31, |
|
December
31, |
|
March
31, |
|
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
|
U.S. GAAP
operating income |
|
$ |
248 |
|
|
$ |
213 |
|
|
$ |
219 |
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense of acquired intangible assets (1) |
|
|
23 |
|
|
|
23 |
|
|
|
17 |
|
Merger
and strategic initiatives (2) |
|
|
6 |
|
|
|
20 |
|
|
|
9 |
|
Restructuring charges (3) |
|
|
- |
|
|
|
- |
|
|
|
9 |
|
Regulatory matter (4) |
|
|
- |
|
|
|
6 |
|
|
|
- |
|
Executive
compensation (5) |
|
|
- |
|
|
|
12 |
|
|
|
- |
|
Sublease
loss reserve (6) |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Total
non-GAAP adjustments |
|
|
29 |
|
|
|
62 |
|
|
|
35 |
|
|
|
|
|
|
|
|
Non-GAAP
operating income |
|
$ |
277 |
|
|
$ |
275 |
|
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues less transaction-based
expenses |
|
$ |
583 |
|
|
$ |
599 |
|
|
$ |
534 |
|
|
|
|
|
|
|
|
U.S. GAAP
operating margin (7) |
|
|
43 |
% |
|
|
36 |
% |
|
|
41 |
% |
|
|
|
|
|
|
|
Non-GAAP
operating margin (8) |
|
|
48 |
% |
|
|
46 |
% |
|
|
48 |
% |
|
|
|
|
|
|
|
(1) Refer
to the non-GAAP information section of the earnings release for
further discussion of why we consider amortization expense of
acquired intangible assets to be a non-GAAP adjustment. (2) For the
three months ended March 31, 2017 and December 31, 2016, merger and
strategic initiatives expense primarily related to our acquisitions
of ISE and Boardvantage, Inc and other strategic initiatives.
For the three months ended March 31, 2016, merger and strategic
initiatives expense primarily related to our acquisitions of Nasdaq
CXC and Marketwired L.P. Refer to the non-GAAP information section
of the earnings release for further discussion on why we consider
merger and strategic initiatives expense to be a non-GAAP
adjustment. (3) Restructuring charges for the three months ended
March 31, 2016 are associated with our 2015 restructuring plan to
improve performance, cut costs, and reduce spending and are
primarily related to severance and other termination benefits,
asset impairment charges and other charges. In June 2016, we
completed our 2015 restructuring plan. Refer to the non-GAAP
information section of the earnings release for further discussion
of why we consider restructuring charges to be a non-GAAP
adjustment.(4) In December 2016, we were issued a $6 million fine
by the SFSA as a result of findings in connection with its
investigations of cybersecurity processes at our Nordic exchanges
and clearinghouse. The SFSA’s conclusions related to governance
issues rather than systems and platform security. We have appealed
the SFSA's decision, including the amount of the fine. This
charge is included in regulatory expense in the Condensed
Consolidated Statements of Income (Loss) for the three months ended
December 31, 2016.(5) For the three months ended December 31, 2016,
we recorded $12 million in accelerated expense due to the
retirement of the company’s former CEO for equity awards previously
granted.(6) For the three months ended December 31, 2016, we
established a sublease loss reserve on space we currently occupy
due to excess capacity. (7) U.S. GAAP operating margin equals U.S.
GAAP operating income divided by total revenues less
transaction-based expenses.(8) Non-GAAP operating margin equals
non-GAAP operating income divided by total revenues less
transaction-based expenses. |
Nasdaq, Inc. |
Reconciliation of U.S. GAAP Net Income (Loss),
Diluted Earnings (Loss) Per Share, Operating Income
and |
Operating Expenses to Non-GAAP Net Income,
Diluted Earnings Per Share, Operating Income, and Operating
Expenses |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March
31, |
|
December
31, |
|
March
31, |
|
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
|
U.S. GAAP
operating expenses |
|
$ |
335 |
|
|
$ |
386 |
|
|
$ |
315 |
|
|
|
|
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense of acquired intangible assets (1) |
|
|
(23 |
) |
|
|
(23 |
) |
|
|
(17 |
) |
Merger
and strategic initiatives (2) |
|
|
(6 |
) |
|
|
(20 |
) |
|
|
(9 |
) |
Restructuring charges (3) |
|
|
- |
|
|
|
- |
|
|
|
(9 |
) |
Regulatory matters (4) |
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
Executive
compensation (5) |
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
Sublease
loss reserve (6) |
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
Total
non-GAAP adjustments |
|
|
(29 |
) |
|
|
(62 |
) |
|
|
(35 |
) |
|
|
|
|
|
|
|
Non-GAAP
operating expenses |
|
$ |
306 |
|
|
$ |
324 |
|
|
$ |
280 |
|
|
|
|
|
|
|
|
(1) Refer
to the non-GAAP information section of the earnings release for
further discussion of why we consider amortization expense of
acquired intangible assets to be a non-GAAP adjustment. (2)
For the three months ended March 31, 2017 and December 31, 2016,
merger and strategic initiatives expense primarily related to our
acquisitions of ISE and Boardvantage, Inc and other strategic
initiatives. For the three months ended March 31, 2016,
merger and strategic initiatives expense primarily related to our
acquisitions of Nasdaq CXC and Marketwired L.P. Refer to the
non-GAAP information section of the earnings release for further
discussion on why we consider merger and strategic initiatives
expense to be a non-GAAP adjustment. (3) Restructuring charges
for the three months ended March 31, 2016 are associated with our
2015 restructuring plan to improve performance, cut costs, and
reduce spending and are primarily related to severance and other
termination benefits, asset impairment charges and other charges.
In June 2016, we completed our 2015 restructuring plan. Refer to
the non-GAAP information section of the earnings release for
further discussion of why we consider restructuring charges to be a
non-GAAP adjustment.(4) In December 2016, we were issued a $6
million fine by the SFSA as a result of findings in connection with
its investigations of cybersecurity processes at our Nordic
exchanges and clearinghouse. The SFSA’s conclusions related to
governance issues rather than systems and platform security. We
have appealed the SFSA's decision, including the amount of the
fine. This charge is included in regulatory expense in the
Condensed Consolidated Statements of Income (Loss) for the three
months ended December 31, 2016.(5) For the three months ended
December 31, 2016, we recorded $12 million in accelerated expense
due to the retirement of the company’s former CEO for equity awards
previously granted.(6) For the three months ended December 31,
2016, we established a sublease loss reserve on space we currently
occupy due to excess capacity. |
Nasdaq, Inc. |
|
Total Variance Impact Analysis |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Total
Variance |
|
Organic
Impact |
|
Acquisition
Impact (1) |
|
FX Impact @ Prior
Year Rates (2) |
|
|
March
31, |
March
31, |
|
|
|
|
|
|
2017 |
2016 |
|
$ |
% |
|
$ |
% |
|
$ |
% |
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Services |
$ |
160 |
$ |
143 |
|
$ |
17 |
12 |
% |
|
$ |
2 |
1 |
% |
|
$ |
16 |
11 |
% |
|
$ |
(1 |
) |
(1 |
%) |
|
Information
Services |
|
138 |
|
133 |
|
|
5 |
4 |
% |
|
|
3 |
2 |
% |
|
|
2 |
2 |
% |
|
|
- |
|
- |
|
|
Market Technology |
|
67 |
|
57 |
|
|
10 |
18 |
% |
|
|
10 |
18 |
% |
|
|
1 |
2 |
% |
|
|
(1 |
) |
(2 |
%) |
|
Total
non-trading segment revenues |
$ |
365 |
$ |
333 |
|
$ |
32 |
10 |
% |
|
$ |
15 |
5 |
% |
|
$ |
19 |
6 |
% |
|
$ |
(2 |
) |
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Acquisition impact reflects the inclusion of revenues from the 2016
acquisitions of Nasdaq CXC, Marketwired L.P., Boardvantage, Inc.
and ISE.(2) In countries with currencies other than the U.S.
dollar, revenues and expenses are translated using monthly average
exchange rates. Certain discussions in this release isolate the
impact of year-over-year foreign currency fluctuations to better
measure the comparability of operating results between periods.
Operating results excluding the impact of foreign currency
fluctuations are calculated by translating the current period’s
results by the prior period’s exchange rates. |
|
Nasdaq, Inc. |
Quarterly Key Drivers Detail |
(unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
March
31, |
|
December
31, |
|
March
31, |
|
2017 |
|
2016 |
|
2016 |
Market
Services |
|
|
|
|
|
Equity Derivative Trading and Clearing |
|
|
|
|
|
U.S.
Equity Options |
|
|
|
|
|
Total
industry average daily volume (in millions) |
|
14.6 |
|
|
|
14.4 |
|
|
|
15.3 |
|
Nasdaq
PHLX Options Market matched market share |
|
17.1 |
% |
|
|
15.7 |
% |
|
|
16.1 |
% |
The
Nasdaq Options Market matched market share |
|
9.5 |
% |
|
|
8.6 |
% |
|
|
7.1 |
% |
Nasdaq BX
Options Market matched market share |
|
0.7 |
% |
|
|
0.7 |
% |
|
|
0.9 |
% |
Nasdaq
ISE Options Market matched market share (1) |
|
9.5 |
% |
|
|
11.2 |
% |
|
|
- |
|
Nasdaq
GEMX Options Market matched market share (1) |
|
5.6 |
% |
|
|
2.8 |
% |
|
|
- |
|
Nasdaq
MRX Options Market matched market share (1) |
|
0.1 |
% |
|
|
0.2 |
% |
|
|
- |
|
Total
matched market share executed on Nasdaq's exchanges |
|
42.5 |
% |
|
|
39.2 |
% |
|
|
24.1 |
% |
|
|
|
|
|
|
Nasdaq
Nordic and Nasdaq Baltic options and futures |
|
|
|
|
|
Total
average daily volume options and futures contracts(2) |
|
338,463 |
|
|
|
332,410 |
|
|
|
452,178 |
|
|
|
|
|
|
|
Cash Equity Trading |
|
|
|
|
|
Total
U.S.-listed securities |
|
|
|
|
|
Total
industry average daily share volume (in billions) |
|
6.84 |
|
|
|
7.06 |
|
|
|
8.56 |
|
Matched
share volume (in billions) |
|
74.7 |
|
|
|
76.4 |
|
|
|
93.7 |
|
The
Nasdaq Stock Market matched market share |
|
14.0 |
% |
|
|
13.6 |
% |
|
|
14.9 |
% |
Nasdaq BX
matched market share |
|
2.7 |
% |
|
|
2.6 |
% |
|
|
2.0 |
% |
Nasdaq
PSX matched market share |
|
0.9 |
% |
|
|
1.0 |
% |
|
|
1.0 |
% |
Total
matched market share executed on Nasdaq's exchanges |
|
17.6 |
% |
|
|
17.2 |
% |
|
|
17.9 |
% |
Market
share reported to the FINRA/Nasdaq Trade Reporting Facility |
|
34.9 |
% |
|
|
34.2 |
% |
|
|
31.9 |
% |
Total
market share(3) |
|
52.5 |
% |
|
|
51.4 |
% |
|
|
49.8 |
% |
|
|
|
|
|
|
Nasdaq
Nordic and Nasdaq Baltic securities |
|
|
|
|
|
Average
daily number of equity trades |
|
507,647 |
|
|
|
492,836 |
|
|
|
525,857 |
|
Total
average daily value of shares traded (in billions) |
$ |
4.8 |
|
|
$ |
4.8 |
|
|
$ |
5.7 |
|
Total
market share executed on Nasdaq's exchanges |
|
66.8 |
% |
|
|
65.1 |
% |
|
|
62.5 |
% |
|
|
|
|
|
|
Fixed Income and Commodities Trading and
Clearing |
|
|
|
|
|
Total
U.S. Fixed Income |
|
|
|
|
|
U.S.
fixed income notional trading volume (in billions) |
$ |
5,041 |
|
|
$ |
5,465 |
|
|
$ |
5,968 |
|
|
|
|
|
|
|
Nasdaq
Nordic and Nasdaq Baltic fixed income |
|
|
|
|
|
Total
average daily volume fixed income contracts |
|
112,004 |
|
|
|
92,133 |
|
|
|
101,470 |
|
|
|
|
|
|
|
Commodities |
|
|
|
|
|
Power
contracts cleared (TWh)(4) |
|
379 |
|
|
|
461 |
|
|
|
420 |
|
|
|
|
|
|
|
Corporate
Services |
|
|
|
|
|
Initial
public offerings |
|
|
|
|
|
Nasdaq |
|
17 |
|
|
|
25 |
|
|
|
10 |
|
Exchanges
that comprise Nasdaq Nordic and Nasdaq Baltic |
|
11 |
|
|
|
24 |
|
|
|
8 |
|
|
|
|
|
|
|
New
listings |
|
|
|
|
|
Nasdaq(5) |
|
42 |
|
|
|
83 |
|
|
|
47 |
|
Exchanges
that comprise Nasdaq Nordic and Nasdaq Baltic(6) |
|
16 |
|
|
|
31 |
|
|
|
14 |
|
|
|
|
|
|
|
Number of
listed companies |
|
|
|
|
|
Nasdaq(7) |
|
2,890 |
|
|
|
2,897 |
|
|
|
2,852 |
|
Exchanges
that comprise Nasdaq Nordic and Nasdaq Baltic(8) |
|
910 |
|
|
|
900 |
|
|
|
847 |
|
|
|
|
|
|
|
Information Services |
|
|
|
|
|
Number of
licensed ETPs |
|
306 |
|
|
|
298 |
|
|
|
226 |
|
ETP
assets under management (AUM) tracking Nasdaq indexes (in
billions) |
$ |
138 |
|
|
$ |
124 |
|
|
$ |
105 |
|
|
|
|
|
|
|
Market
Technology |
|
|
|
|
|
Order
intake (in millions)(9) |
$ |
47 |
|
|
$ |
136 |
|
|
$ |
22 |
|
Total
order value (in millions)(10) |
$ |
777 |
|
|
$ |
777 |
|
|
$ |
783 |
|
|
|
|
|
|
|
(1)
Matched market share for Nasdaq ISE, Nasdaq GEMX and Nasdaq MRX is
not disclosed for the three months ended March 31, 2016 since
Nasdaq’s acquisition of ISE closed on June 30, 2016.(2) Includes
Finnish option contracts traded on EUREX Group.(3) Includes
transactions executed on Nasdaq's, Nasdaq BX's and Nasdaq PSX's
systems plus trades reported through the Financial Industry
Regulatory Authority/Nasdaq Trade Reporting Facility. (4)
Transactions executed on Nasdaq Commodities or OTC and reported for
clearing to Nasdaq Commodities measured by Terawatt hours (TWh).(5)
New listings include IPOs, including those completed on a best
efforts basis, issuers that switched from other listing venues,
closed-end funds and separately listed exchange traded products, or
ETPs.(6) New listings include IPOs and represent companies listed
on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on
the alternative markets of Nasdaq First North.(7) Number of total
listings on Nasdaq at period end, including 332 separately listed
ETPs at March 31, 2017, 327 at December 31, 2016 and 241 at March
31, 2016.(8) Represents companies listed on the Nasdaq Nordic and
Nasdaq Baltic exchanges and companies on the alternative markets of
Nasdaq First North at period end.(9) Total contract value of orders
signed during the period.(10) Represents total contract value of
orders signed that are yet to be recognized as revenue. |
MEDIA RELATIONS CONTACT:
Allan Schoenberg
+1.212.231.5534
allan.schoenberg@nasdaq.com
INVESTOR RELATIONS CONTACT:
Ed Ditmire, CFA
+1.212.401.8737
ed.ditmire@nasdaq.com
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