Nasdaq to Boost Exchanges with Index Calculation System

The Nasdaq OMX Group, Inc. NDAQ recently launched a unique solution to provide marketplaces with an extremely adaptable index calculation platform – the Nasdaq Index Calculation System.

With this launch, Nasdaq intends to provide the marketplaces with an intuitive, index calculation platform that aims to make the computation of multi-asset, multi-currency indices very convenient. Marketplaces will now be able to operate and administer in-house index calculations with the help of this solution. Moreover, the platform will provide the much-needed flexibility to define and create unique products. Simultaneously, it will also help in maintaining operational control as well as ensuring IP and ownership over the marketplaces’ indexes. This will further reduce time-to-market operations. Notably, the first entity to utilize this technology is Singapore Exchange. The adoption of this technology will boost the exchange’s index services offering.

The new platform will also allow the exchanges to create their own indices as well as work with their partners to create attractive products based on the same. These endeavors will not only enable these marketplaces to distinguish their brands but also generate new sources of revenue.

Additionally, this solution will enable the exchanges to offer new value-added services as well as broaden their product portfolio to bolster their brand name and expand their reach. Nasdaq Index Calculation System will also help in the generation of more value for members by enabling them to use more products and services from the marketplaces. This technology is also expected to benefit all the exchanges through time and cost reduction as well as top-line growth.

Currently, Nasdaq carries a Zacks Rank #3 (Hold). Better-ranked stocks from the same space include Euronet Worldwide, Inc. EEFT, MarketAxess Holdings Inc. MKTX and Blackhawk Network Holdings, Inc. HAWK. While Euronet Worldwide sports a Zacks Rank #1 (Strong Buy), both MarketAxess Holdings and Blackhawk Network hold a Zacks Rank #2 (Buy).

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