NEW YORK, April 24, 2008 (PRIME NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that The NASDAQ Stock Market(r) (NASDAQ(r)) has won the "Largest Exchange for ETFs" in the Americas award, as measured by dollar turnover, for the fourth consecutive year. NASDAQ is also the recipient of the "Largest Exchange for ETFs" in the Americas award, as measured by share volume. The awards were presented on April 17, 2008 by Exchangetradedfunds.com Inc. -- a leading provider of information about ETFs. They were based on objective statistical evaluations conducted by Morgan Stanley.
According to Morgan Stanley, NASDAQ's average daily share volume in all U.S. ETFs in 2007 was 265.3* million, more than all other U.S. exchanges. The average daily value of those shares (dollar turnover) was $21.2 billion*, also surpassing all other U.S. exchanges.
"We are elated that NASDAQ has been recognized as the largest and most liquid market for ETFs in the U.S.," said Chris Concannon, Executive Vice President, Transaction Services U.S., NASDAQ OMX Group. "NASDAQ OMX is committed to duplicating this success by creating similarly deep pools of liquidity on our Pan European Market."
NASDAQ OMX announced on April 17, 2008 it has filed an application with the UK Financial Services Authority (FSA) for the NASDAQ OMX Pan European Market to become a multilateral trading facility (MTF).
The NASDAQ OMX Pan European Market will enable best execution in high volume securities trading in a cross-border, multi-market environment. The market, which will be the first platform to connect European liquidity pools with Pan-European routing, is scheduled to open in September 2008. The launch of the NASDAQ OMX Pan European Market is subject to FSA approval.
NASDAQ's efficiency in ETF trading is attributable, in part, to The NASDAQ ETF Market, a market segment designed specifically for exchange traded funds and Index Linked Notes (ILNs). The centerpiece of the market is the Designated Liquidity Provider, a Market Maker who has been selected to maintain liquidity in qualified ETFs (i.e., Qualified Securities). NASDAQ requires Designated Liquidity Providers to maintain a higher standard of market quality measured by spread, depth, and time quoting at or near the National Best Bid and Offer (NBBO). They receive price incentives to support ETFs during their period of initial listing, when ETFs need to develop more active trading.
The NASDAQ ETF Market allows the traditional floor-based specialist, who has historically provided initial liquidity to new ETFs, to play a similar role by placing two-sided quotes in the NASDAQ Market Center. This enables ETF sponsors to continue to have the ability to develop "preferred" relationships with intermediaries. ETF issuers may choose a single Designated Liquidity Provider or multiple, competing liquidity providers. This flexible structure enables ETF issuers and traders to interact based on the needs of the issuer as they vary throughout the life cycle of the ETF.
NASDAQ OMX is a leading index calculator, designer and creator of some of the world's most popular ETFs, including PowerShares QQQ(tm) (Nasdaq:QQQQ) -- the most heavily traded listed equity security in the U.S. and the most active ETF in the world. PowerShares QQQ is designed to correspond to the price and yield performance of the NASDAQ-100 Index(r), the basis of more than 500 investment products in more than 36 countries.
For more information about the NASDAQ ETF Market, please contact Richard Keary, NASDAQ OMX New Listings, at 212.401.8903 or Richard.keary@nasdaqomx.com or NASDAQ OMX Market Sales at 800.846.0047 or sales@nasdaq.com.
ABOUT NASDAQ OMX GROUP
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, and with over 3,900 companies, it is number one in worldwide listings among major markets. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; the OMX Nordic Exchange, including First North; and the 144A PORTAL Market. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX technology supports the operations of over 60 exchanges, clearing organizations and central securities depositories in more than 50 countries. OMX Nordic Exchange is not a legal entity but describes the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX's initiatives (including the NASDAQ OMX Pan European Market and The NASDAQ ETF Market), products and offerings and their potential success. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements. There can be no assurance that the FSA will give the NASDAQ OMX applicant the authorization and permissions which it seeks.
*Source: Morgan Stanley
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