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NDAQ » Topics » Business Environment

This excerpt taken from the NDAQ 10-Q filed May 8, 2009.

Business Environment

We serve listed companies, market participants and investors by providing high quality cash equity, fixed-income and derivative markets, thereby facilitating economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment, government and private sector demands for capital, the regulatory environment for primary and secondary equity markets, and the changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by a number of domestic and international trends including:

 

  •  

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the global economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

The slow return of confidence to the credit markets limiting the availability of liquidity to our technology customers, our suppliers, trading participants, and our listed companies from sources such as bank lending, the commercial paper market and the asset securitization market;

 

  •  

The failure of certain market participants, the partial or complete takeover of financial institutions by national governments, and the distressed mergers of market participant organizations;

 

  •  

The reduction in the ability of our fixed-income issuers to access the credit markets due to ratings downgrades or illiquidity in the market;

 

  •  

The impact on the economic strength of technology customers and suppliers arising from the securities market declines and the economic slowdown;

 

  •  

Competition for listings and trade executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

Currently our business drivers are characterized by continued elevated levels of investor uncertainty about the outlook for financial institutions and global economic growth, declining levels of market volatility, ongoing industry adaptation to major regulatory initiatives (particularly the Markets in Financial Instruments Directive, or MiFID in the European economic area) and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the first quarter of 2009 can be characterized as follows:

 

  •  

The slowest pace of equity issuance since the late 1970s with 2 IPOs across all exchanges in the U.S. and no new IPOs on The NASDAQ Stock Market and the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic;

 

  •  

Continued reduced access to debt and equity capital for both new and established companies with the exception of capital raising activity associated with the financial crisis;

 

  •  

Moderate 8% year-on-year growth relative to the first quarter of 2008 in equity matched trades in the U.S. driven by increased trading levels which were partially offset by lower market share;

 

  •  

A 9% decline relative to the first quarter of 2008 in the number of equity transactions on our Nordic and Baltic exchanges driven by a downturn in market sentiment as well as a 47% decrease in the value of equity transactions caused in large part by lower equity prices;

 

  •  

A 28% decline experienced by our Nordic and Baltic exchanges relative to the first quarter of 2008 in number of traded derivatives contracts in equity related products (excluding EDX and Eurex);

 

  •  

A 49% decrease relative to the first quarter of 2008 in number of cleared derivatives contracts in fixed-income related products on our Nordic and Baltic exchanges caused in large part by short-term interest rates nearing 0% yield;

 

  •  

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

 

  •  

Consolidation of major global customers as financial institutions are acquired, merged, and restructured; and

 

  •  

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets.

 

31

Table of Contents
These excerpts taken from the NDAQ 10-K filed Feb 27, 2009.

Business Environment

 

We serve listed companies, market participants and investors by providing high quality cash equity, fixed-income and derivative markets, thereby facilitating economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, government and private sector demands for capital, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the global economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

The loss of confidence in the credit markets, which has restricted availability of liquidity to technology customers, our suppliers, trading participants and listed companies from sources such as bank lending, the commercial paper market and the asset securitization market;

 

  •  

The failure of certain market participants and the partial or complete takeover of financial institutions by national governments;

 

  •  

The reduction in the ability of our fixed-income issuers to access the credit markets due to ratings downgrades or illiquidity in the market;

 

  •  

The impact on the economic strength of technology customers and suppliers arising from the securities market declines and the economic slowdown;

 

  •  

Competition for listings and trading executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

 

Currently our business drivers are characterized by historically high levels of investor uncertainty about the outlook for financial institutions and global economic growth, similarly high levels of market volatility, industry adaptation to major regulatory initiatives (particularly MiFID in the European economic area) and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the full year 2008 can be characterized as follows:

 

  •  

The slowest pace of equity issuance since the late 1970s with 13 IPOs in the U.S. and 19 on the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic relative to the full year 2008;

 

  •  

Continued reduced access to debt and equity capital for both new and established companies;

 

  •  

Very strong 51% annual growth relative to the full year 2007 in equity matched trading volume in the U.S. driven by growth in our market share of NYSE- and regional-listed securities as well as market volatility;

 

  •  

Higher levels of volatility, as well as decreasing trade size, also drove 16% growth relative to the full year 2007 in the number of equity transactions on our Nordic and Baltic exchanges, which was offset by a 28% decrease in the value of equity transactions caused in large part by falling equity prices;

 

  •  

Our Nordic and Baltic exchanges experienced a 1% decline relative to the year 2007 in number of traded derivatives contracts in equity related products;

 

  •  

There was a 12% increase relative to the full year of 2007 in number of cleared derivatives contracts in fixed-income related products on our Nordic and Baltic exchanges;

 

46

Table of Contents
  •  

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe as new trading platforms, including NASDAQ OMX Europe, are launched in response to MiFID;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

 

  •  

Consolidation of major global customers as financial institutions are acquired, merge, and restructure; and,

 

  •  

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets.

 

Business Environment

SIZE="1"> 

We serve listed companies, market participants and investors by providing high quality cash equity, fixed-income and
derivative markets, thereby facilitating economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers
including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, government and private sector demands for capital, the regulatory environment for primary and
secondary equity markets, and changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by domestic and international trends including:

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

The number of companies seeking equity financing, which is affected by factors such as investor demand, the global economy, alternative sources of financing, and
tax and regulatory policies;

 







 • 

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 







 • 

The loss of confidence in the credit markets, which has restricted availability of liquidity to technology customers, our suppliers, trading participants and listed
companies from sources such as bank lending, the commercial paper market and the asset securitization market;

 







 • 

The failure of certain market participants and the partial or complete takeover of financial institutions by national governments;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

The reduction in the ability of our fixed-income issuers to access the credit markets due to ratings downgrades or illiquidity in the market;

 







 • 

The impact on the economic strength of technology customers and suppliers arising from the securities market declines and the economic slowdown;

 







 • 

Competition for listings and trading executions related to pricing, and product and service offerings; and

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Other technological advancements and regulatory developments.

SIZE="1"> 

Currently our business drivers are characterized by historically high levels of investor uncertainty about the outlook for
financial institutions and global economic growth, similarly high levels of market volatility, industry adaptation to major regulatory initiatives (particularly MiFID in the European economic area) and continued rapid evolution and deployment of new
technology in the financial services industry. The business environment that influenced our financial performance during the full year 2008 can be characterized as follows:

SIZE="1"> 







 • 

The slowest pace of equity issuance since the late 1970s with 13 IPOs in the U.S. and 19 on the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic
relative to the full year 2008;

 







 • 

Continued reduced access to debt and equity capital for both new and established companies;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Very strong 51% annual growth relative to the full year 2007 in equity matched trading volume in the U.S. driven by growth in our market share of NYSE- and
regional-listed securities as well as market volatility;

 







 • 

Higher levels of volatility, as well as decreasing trade size, also drove 16% growth relative to the full year 2007 in the number of equity transactions on our
Nordic and Baltic exchanges, which was offset by a 28% decrease in the value of equity transactions caused in large part by falling equity prices;

SIZE="1"> 







 • 

Our Nordic and Baltic exchanges experienced a 1% decline relative to the year 2007 in number of traded derivatives contracts in equity related products;

 







 • 

There was a 12% increase relative to the full year of 2007 in number of cleared derivatives contracts in fixed-income related products on our Nordic and Baltic
exchanges;

 


46






Table of Contents








 • 

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe as new trading platforms, including NASDAQ
OMX Europe, are launched in response to MiFID;

 







 • 

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Consolidation of major global customers as financial institutions are acquired, merge, and restructure; and,

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global
financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets.

 

This excerpt taken from the NDAQ 10-Q filed Nov 7, 2008.

Business Environment

We serve listed companies, market participants and investors by providing high quality cash equity and derivative markets, thereby enabling economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, government and private sector demands for capital, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

The loss of confidence in the credit markets, resulting in the unavailability of liquidity to customers, suppliers, trading participants and listed companies from sources such as the commercial paper market and the asset securitization market;

 

  •  

The failure of certain market participants and the partial or complete takeover of financial institutions by national governments;

 

  •  

The impact on the economic strength of technology customers and suppliers arising from the securities market declines and the economic slowdown;

 

  •  

Competition for listings and trading executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

Currently our business drivers are characterized by significant investor uncertainty about the outlook for financial institutions and global economic growth, historically high levels of market volatility, industry adaptation to past major regulatory initiatives particularly the Markets in Financial Instruments Directive, or MiFID, in the European economic area, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the third quarter of 2008 can be characterized as follows:

 

  •  

The slowest pace of equity issuance since 2003 with two IPOs in the U.S. and three on the Nordic Exchange;

 

  •  

Continued reduced access to debt and equity capital for both new and established companies;

 

  •  

Very strong 47.3% annual growth relative to the third quarter of 2007 in equity matched trading volume in the U.S. driven by growth in our market share of NYSE-, and regional-listed securities as well as market volatility;

 

  •  

Higher levels of volatility, as well as decreasing trade size, also drove 3.0% growth relative to the third quarter of 2007 in the number of equity transactions on the Nordic Exchange which was offset by a 35.6% decrease in the value of equity transactions caused in large part by falling equity prices;

 

  •  

The Nordic Exchange experienced a 6.5% decline relative to the third quarter of 2007 in number of traded derivatives contracts in equity related products;

 

  •  

There was a 5.5% decline relative to the third quarter of 2007 in number of cleared derivatives contracts in fixed income related products for the Nordic Exchange;

 

  •  

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe as new trading platforms including NASDAQ OMX Europe are launched in response to MiFID;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

 

  •  

Consolidation of major global customers as financial institutions are acquired, merge, and restructure; and,

 

  •  

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets.

This excerpt taken from the NDAQ 10-Q filed Aug 8, 2008.

Business Environment

We serve listed companies, market participants and investors by providing high quality cash equity and derivative markets, thereby enabling economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, government and private sector demands for capital, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

Competition for listings and trading executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

Currently our business drivers are characterized by investor uncertainty about the impact of anti-inflationary monetary polices on global economic growth, ongoing elevated levels of market volatility, industry adaptation to past major regulatory initiatives particularly the Markets in Financial Instruments Directive, or MiFID, in the European economic area, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the second quarter of 2008 can be characterized as follows:

 

  •  

The slowest pace of equity issuance since 2003 with three IPOs in the U.S. and nine on the Nordic Exchange;

 

  •  

Continued reduced access to debt and equity capital for both new and established companies;

 

  •  

Very strong 34.1% annual growth relative to the second quarter of 2007 in equity matched trading volume in the U.S. driven by growth in our market share of NYSE-, Amex-, and regional-listed securities and market volatility;

 

  •  

Higher levels of volatility, as well as decreasing trade size, also drove a robust 14.0% growth relative to the second quarter of 2007 in the number of equity transactions on the Nordic Exchange which was offset by a 27.0% decrease in the value of equity transactions caused in large part by falling equity prices;

 

  •  

The Nordic Exchange experienced a 0.5% decline relative to the second quarter of 2007 in number of traded derivatives contracts in equity related products;

 

  •  

Continued instability in the credit markets was the primary cause of very strong 14.0% growth relative to the second quarter of 2007 in number of cleared derivatives contracts in fixed income related products for the Nordic Exchange;

 

  •  

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe as new trading platforms are launched in response to MiFID;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

 

  •  

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets; and

 

  •  

The introduction of NASDAQ Last Sale continued the recent trend of innovation and development in data products as market operators intensify their competition for market data revenues.

This excerpt taken from the NDAQ 10-Q filed May 9, 2008.

Business Environment

We serve listed companies, market participants and investors by providing high quality cash equity and derivative markets, thereby enabling economic growth and corporate entrepreneurship. We also provide market technology to exchanges and markets around the world. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, government and private sector demands for capital, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. and Nordic equity and derivative securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

Competition for listings and trading executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

Currently our business drivers are characterized by increasing concern over the pace of economic growth, diverging monetary policies in the U.S. and Europe, uncertain investor sentiment, elevated levels of equity market volatility, significant regulatory changes in the U.S. and the European Union, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the first quarter of 2008 can be characterized as follows:

 

  •  

The slowest pace of equity issuance since 2003 with seven IPOs in the U.S. and two in the Nordic and Baltic markets;

 

  •  

Reduced access to debt and equity capital for both new and established companies;

 

  •  

Very strong 61.5% annual growth relative to the first quarter of 2007 in equity matched trading volume in the U.S driven by Regulation NMS, growth in our market share of NYSE- and Amex-listed securities, and market volatility;

 

  •  

Higher levels of volatility, as well as decreasing trade size, also drove a robust 27.6% growth relative to the first quarter of 2007 in the number of equity transactions on the Nordic Exchange which was partially offset by a decrease in the value of equity transactions caused by falling equity prices;

 

  •  

The Nordic Exchange experienced 2.2% growth relative to the first quarter of 2007 in number of traded derivatives contracts in equity related products;

 

  •  

Instability in the credit markets was the primary cause of very strong 58.1% growth relative to the first quarter of 2007 in number of cleared derivatives contracts in Fixed Income related products for the Nordic Exchange;

 

43

Table of Contents
  •  

Intense competition among U.S. exchanges for both equity trading volume and listings and growing competition in Europe as new trading platforms are launched in response to MiFID;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond national markets;

 

  •  

Market Technology order intake growth of 16.0% relative to the first quarter of 2007 driven by an increased opportunity pipeline;

 

  •  

Market trends requiring continued investment in technology to meet customers’ demands for speed, capacity, and reliability as markets adapt to a global financial industry, as increased numbers of new companies surface, and as emerging countries show ongoing interest in developing their financial markets; and

 

  •  

Continued intense competition for market data revenues due to the market data revenue allocation formula required by Regulation NMS.

These excerpts taken from the NDAQ 10-K filed Feb 25, 2008.

Business Environment

 

Nasdaq serves listed companies, market participants and investors by providing a high quality cash equity market, thereby enabling corporate growth and entrepreneurship. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues, revenues less liquidity rebates, brokerage, clearance and exchange fees and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. equity securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

Competition for listings and trading executions related to pricing, and product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

 

2007 was a year of contrasts for our business drivers. The first half of the year saw the best first six month period for IPOs since 2000 supported by an optimistic outlook for the economy and a general upward trend in securities prices and trading volumes. As the year progressed, increasing concern over the impact of recent events in the credit markets clouded the outlook for the future pace of economic growth. Additional challenges included uncertain U.S. investor sentiment resulting in the highest level of market volatility in the last four years, significant regulatory changes in the U.S. and the European Union, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance in 2007 can be characterized as follows:

 

  •  

An overall pace of equity issuance very similar to 2006;

 

  •  

Continued growth of financing alternatives for both new and established companies;

 

  •  

Very strong 25.7% annual growth relative to 2006 in equity trading volume in the U.S driven by Regulation NMS as well as elevated levels of volatility;

 

  •  

Intense competition among U.S. exchanges for both equity trading volume and listings;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond the U.S.;

 

  •  

Customers’ demands for speed, capacity, and reliability require continuing investment in technology; and

 

  •  

Increasing competition for market data revenues due to the new market data revenue allocation formula required by Regulation NMS.

 

Business Environment

SIZE="1"> 

Nasdaq serves listed companies, market participants and investors by providing a high quality cash equity market, thereby
enabling corporate growth and entrepreneurship. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the
outlook for equity investments, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues, revenues less liquidity rebates, brokerage, clearance and
exchange fees and net income will continue to be influenced by domestic and international trends including:

 







 • 

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and
regulatory policies;

 







 • 

Trading volumes, particularly in U.S. equity securities, which are driven primarily by overall macroeconomic conditions;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Competition for listings and trading executions related to pricing, and product and service offerings; and

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Other technological advancements and regulatory developments.

SIZE="1"> 

2007 was a year of contrasts for our business drivers. The first half of the year saw the best first six month period for
IPOs since 2000 supported by an optimistic outlook for the economy and a general upward trend in securities prices and trading volumes. As the year progressed, increasing concern over the impact of recent events in the credit markets clouded the
outlook for the future pace of economic growth. Additional challenges included uncertain U.S. investor sentiment resulting in the highest level of market volatility in the last four years, significant regulatory changes in the U.S. and the European
Union, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance in 2007 can be characterized as follows:

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

An overall pace of equity issuance very similar to 2006;

 








 • 

Continued growth of financing alternatives for both new and established companies;

SIZE="1"> 







 • 

Very strong 25.7% annual growth relative to 2006 in equity trading volume in the U.S driven by Regulation NMS as well as elevated levels of volatility;

 







 • 

Intense competition among U.S. exchanges for both equity trading volume and listings;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Globalization of exchanges, customers and competitors extending the competitive horizon beyond the U.S.;

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Customers’ demands for speed, capacity, and reliability require continuing investment in technology; and

STYLE="margin-top:0px;margin-bottom:-6px"> 







 • 

Increasing competition for market data revenues due to the new market data revenue allocation formula required by Regulation NMS.

STYLE="margin-top:0px;margin-bottom:0px"> 

This excerpt taken from the NDAQ 10-Q filed Nov 9, 2007.

Business Environment

We serve listed companies, market participants and investors by providing a high quality cash equity market, thereby enabling corporate growth and entrepreneurship. In broad terms, our business performance is impacted by a number of drivers including macroeconomic events affecting the risk and return of financial assets, investor sentiment regarding the outlook for equity investments, the regulatory environment for primary and secondary equity markets, and changing technology in the financial services industry. Our future revenues, revenues less liquidity rebates, brokerage, clearance and exchange fees and net income will continue to be influenced by domestic and international trends including:

 

  •  

The number of companies seeking equity financing, which is affected by factors such as investor demand, the economy, alternative sources of financing, and tax and regulatory policies;

 

  •  

Trading volumes, particularly in U.S. equity securities, which are driven primarily by overall macroeconomic conditions;

 

  •  

Competition for listings and trading executions related to pricing, product and service offerings; and

 

  •  

Other technological advancements and regulatory developments.

Currently our business drivers are characterized by increasing concern over the impact of recent events in the credit markets on the future pace of economic growth, uncertain U.S. investor sentiment resulting in the highest level of volatility in the last four years, significant regulatory changes in the U.S. and the European Union, and continued rapid evolution and deployment of new technology in the financial services industry. The business environment that influenced our financial performance during the third quarter of 2007 can be characterized as follows:

 

  •  

A slowing in the pace of equity issuance to more moderate levels than those of the first half of 2007;

 

  •  

Continued growth of financing alternatives for both new and established companies;

 

  •  

Very strong 34.5% annual growth relative to the third quarter of 2006 in equity trading volume in the U.S driven by elevated levels of volatility;

 

  •  

Intense competition among U.S. exchanges for both equity trading volume and listings;

 

  •  

Globalization of exchanges, customers and competitors extending the competitive horizon beyond the U.S.;

 

  •  

Customers’ demands for speed, capacity, and reliability require continuing investment in technology; and

 

  •  

Increasing competition for market data revenues due to the new market data revenue allocation formula required by Regulation NMS.

 

34

Table of Contents

EXCERPTS ON THIS PAGE:

10-Q
May 8, 2009
10-K (2 sections)
Feb 27, 2009
10-Q
Nov 7, 2008
10-Q
Aug 8, 2008
10-Q
May 9, 2008
10-K (2 sections)
Feb 25, 2008
10-Q
Nov 9, 2007

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