Nasdaq OMX to Combine Global Data and Index Businesses

Exchange operator looks to combined unit for data distribution and product innovation as a revenue opportunity.

Nasdaq OMX said it’s merging its global data products and global index businesses into a single unit that will comprise 20 percent of the exchange operator’s revenues.

"Combining these business areas allows us to better take advantage of the sweet spot they inherently both share: distribution of data and the delivery of innovative products that provide market insight and transparency," commented Bob Greifeld, President and CEO, NASDAQ OMX, in today’s release.

John L. Jacobs, EVP of Nasdaq OMX will lead the combined business, to be called Global Information Services. Jacobs previously oversaw the Global Index Group and served Chief Marketing Officer for Nasdaq OMX since 2003. With the changes, Jeremy Skule was named to the position of SVP and chief marketing officer, reporting to Nasdaq OMX CEO Robert Greifeld.

Nasdaq OMX began to treat the new combined unit as a separate reporting segment effective Jan. 1, 2013.

The move is a sign that exchanges are focusing on their data businesses as growth opportunities to generate revenues. Indexes are critical to product innovation for exchanges, which can create their own index-based products such as ETFs or derivatives based on indexes.

“Indexes and data continue to represent a significant opportunity for us, and our customers span virtually every segment of the financial services industry," said Mr. Jacobs. "More importantly, the combined business unit will enable us to leverage the recent technology investments and improvements we have made in these areas to deliver more data and indexes faster, across more asset classes, and at lower cost than ever before."

Currently, Nasdaq OMX’s global data products delivers historical and real-time market data to 2.5 million financial professionals and individuals in 83 countries. In addition, the exchange operator has been reating innovative and transparent indexes since 1971, notes the release. Today, there are over 7,000 products based on Nasdaq OMX indexes, spanning different geographies and asset classes with nearly $1 trillion in notional value.

In a statement, Greifeld said Nasdaq OMX “would strive to become one of the top global information providers in the financial services industry.”

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