- Net revenues1 were $583 million
in the first quarter of 2017, an increase of 9% compared to the
first quarter of 2016. Subscription and recurring revenues2 in
the first quarter of 2017 represented 75% of total net
revenues.
- First quarter 2017 GAAP diluted EPS
was $0.99, while non-GAAP diluted EPS was $1.103. Compared to the
first quarter of 2016, GAAP diluted EPS increased $0.21, or 27%,
while non-GAAP diluted EPS increased $0.19, or 21%.
- Revenues in non-trading
segments4 in the first quarter of 2017 increased 10% compared
to the first quarter of 2016, including organic growth of 5%.
Market Technology organic revenue growth was 18% from the prior
year period.
- As of March 31, 2017, the company
achieved $50 million in annualized run-rate cost synergies out of a
targeted $60 million expected within eighteen months of the
respective 2016 acquisition closing dates.
- Nasdaq announced a 19% increase in
the quarterly dividend to $0.38, and in the first quarter of 2017
repurchased $156 million of its common stock. Dividends and
buybacks totaled $209 million during the first quarter of
2017.
NEW YORK, April 26, 2017 (GLOBE NEWSWIRE) --
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. |