Nasdaq looks beyond stock trading in merger of units

PUBLISHED : Saturday, 19 January, 2013, 12:00am
UPDATED : Saturday, 19 January, 2013, 5:12am

Nasdaq OMX, the second-largest equity market operator in the United States, is combining two technology units that provide advisory services to exchanges and research on company shareholders.

The company said it would merge its market technology and corporate solutions divisions.

Anna Ewing, the executive vice-president of global technology solutions, will lead the new business.

The company named Bradley Peterson global chief information officer. He will assume his position on February 6.

Peterson, who held the position at Charles Schwab, will report to Ewing, who previously held the title.

Nasdaq, trying to expand its business beyond securities transactions, said the reorganisation would help integrate units it was buying from Thomson Reuters that provide investor and public relations products.

The purchase would boost Nasdaq's software revenue to more than US$500 million, chief executive Robert Greifeld said.

"We wanted a proper organisational structure in place," Greifeld said. "Anna Ewing has taken responsibility for this major integration effort."

Nasdaq's market technology division sells technology and advisory services to more than 70 markets, clearing organisations and central securities depositories in more than 50 countries.

The corporate solutions unit provides products and services for market intelligence to identify, target and communicate with shareholders.

The computerised infrastructure of American capital markets has come under increased scrutiny after a series of breakdowns in the past year, including Nasdaq OMX's mishandling of Facebook's initial public offering. Bats Global Markets and Knight Capital experienced mishaps.

Last month, Nasdaq bought a 25 per cent stake in The Order Machine (TOM), a Dutch alternative securities-trading system focused on stocks and equity derivatives. The exchange will operate TOM's market and has an eight-year contract to provide trading technology.

Bloomberg competes with Thomson Reuters in selling financial and legal information and trading systems.