UPDATE: Nasdaq CFO: Will Be 'Rational' Amid Consolidation

Nasdaq OMX Group Inc. (NDAQ) will be rational and analytical amid a fresh round of consolidation that could reshape the global business of running financial exchanges, according to a senior executive.

The complexity of the cross-border exchange mergers announced this week will give Nasdaq OMX time to evaluate the fallout and evolved competition--if the deals close, said Adena Friedman, chief financial officer for Nasdaq OMX.

"Generally speaking, we don't see any significant competitive dynamic that changes in terms of what we are here to do," Friedman told investors at a presentation Thursday.

NYSE Euronext (NYX) and Deutsche Boerse AG (DBOEF, DB1.XE) announced Wednesday that they were in advanced merger talks for a deal that would create a titan in global stock and derivatives trade. The announcement followed just hours after Canada's TMX Group (TMXGF, X.T) agreed on its own combination with London Stock Exchange Group PLC (LSE.LN).

The twin deals prompted a rally in exchange stocks as investors speculated on the potential for other major participants to do their own deals. Nasdaq OMX and CME Group Inc. (CME) are seen on the defensive particularly in light of an NYSE Euronext-Deutsche Boerse combination, which would pose a formidable challenge to CME's strength in futures, and create the leading equities platform in terms of both listings and trading volume.

Friedman said Thursday that Nasdaq OMX would watch closely for opportunities arising from the dealmaking, particularly in terms of growing its share of trading in U.S. options and European markets.

"I think that our job right now is to sit back and understand the deals in great detail and make sure we're acting in a fiduciary duty to our shareholders," said Friedman.

"The best thing we can do for our business is to be rational, to be analytical and look at all the potential outcomes that could come from those [merger] announcements," she said.

Nasdaq OMX shares recently were 0.5% lower at $27.45.

Shares in NYSE Euronext were 0.9% lower at $37.77, with CME 1.2% higher at $306.

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

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