Nasdaq boosted by non-trading units in Q4

Nasdaq boosted by non-trading units in Q4

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Nasdaq notched up record revenues in the last quarter of 2015 as the electronic exchange operator’s non-trading business put in a decent performance.

Total revenue of $536m for the group between October and December beat 2014’s fourth quarter by 4%.

Higher income from its data, technology and indexing divisions offset drops in equities, derivatives and fixed income trading.

Under chief exec Bob Greifeld, Nasdaq has transformed from a US-focused exchange operator to a global business that includes markets in the US, Canada and the Nordics.

A suite of fast growing non-trading businesses, including investor and public relations, technology and data have strengthened the firm’s offering.

Nasdaq’s technology division, for example, contributed 27% ($146m) of net revenue in the last quarter, up $4m from 2014.

Data revenues totalled $98m, up $7m compared to the fourth quarter of 2014.

“Market volatility and economic uncertainty increased in the fourth quarter, during which the company's non-trading businesses produced strong organic growth,” Greifeld said today.

On the trading side, market services revenue, which contributes 36% to the exchange's top line, fell 3% to $195m.

Net equity derivative trading and clearing revenues were $48m in the fourth quarter of 2015, down $5m compared to the fourth quarter of 2014.   

Fixed income, currency and commodities revenues were $20m in the fourth quarter of 2015, down $9m from the fourth quarter of 2014, due to volume declines in US fixed income and commodities products, and foreign exchange impact.

Listing services revenue rose 11.5% to $68m.

The firm also announced that Lee Shavel, chief financial officer, will retire in March 2016.

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