NASDAQ OMX Group (NDAQ)

Revenues less liquidity rebates, brokerage, clearance and exchange fees increased $91 million, or 32.7%, to $369 million in the first quarter of 2009, compared with $278 million in the first quarter of 2008 due to the following:

Increase in Market Services segment revenues less liquidity rebates, brokerage, clearance and exchange fees of $72 million, or 38.7%, to $258 million for the three months ended March 31, 2009 compared with $186 million for the three months ended March 31, 2008, primarily due to an increase in European Market Services revenues of $39 million, reflecting results of operations for the full three-month period in 2009 compared with one month in 2008, and the inclusion of NASDAQ OMX PHLX’s Market Services revenues less liquidity rebates, brokerage, clearance and exchange fees of $36 million.

Increase in Market Technology segment revenues of $16 million to $29 million for the three months ended March 31, 2009, compared with $13 million for the three months ended March 31, 2008, reflecting results of operations for the full three-month period in 2009 compared to one month in 2008.

Increase in total operating expenses of $58 million, or 40.0%, to $203 million for the three months ended March 31, 2009, compared with $145 million for the three months ended March 31, 2008, primarily due to an increase in OMX’s operating expenses of $43 million, reflecting a full three-month period of operating expenses in 2009 compared to one month in 2008, and the inclusion of NASDAQ OMX PHLX’s operating expenses of $14 million.

Increase in interest expense of $17 million to $27 million for the three months ended March 31, 2009, compared with $10 million for the three months ended March 31, 2008, primarily reflecting a full three-month period of interest expense in 2009 on our outstanding debt obligations related to the OMX AB business combination compared with one month of interest expense in 2008. In addition, interest expense increased due to our outstanding debt obligations related to the PHLX acquisition and the acquisition of certain businesses of Nord Pool that were completed in the second half of 2008.

Gain on foreign currency contracts, net of $35 million for the three months ended March 31, 2008 related to our business combination with OMX AB ($27 million) and our acquisition of certain businesses of Nord Pool ($8 million).

Income (loss) from unconsolidated investees, net was a net loss of $2 million for the three months ended March 31, 2009, compared to net income of $27 million for the three months ended March 31, 2008. The decrease of $29 million is primarily due to the gain recorded in the three months ended March 31, 2008 related to the NASDAQ Dubai transaction.

Improved revenues less liquidity rebates, brokerage, clearance and exchange fees from our Market Services segment, which increased $490.6 million, or 92.9%, to $1,018.7 million in 2008, compared with $528.1 million in 2007 due to the following:

Increases in the average daily share volume and trade execution market share for NYSE-listed securities and regional-listed securities, partially offset by higher cost of revenues; and

The inclusion of our European Market Services revenues in 2008 of $324.3 million and NASDAQ OMX PHLX’s revenues less liquidity rebates, brokerage, clearance and exchange fees of $70.0 million.

Increase in our Issuer Services segment revenues of $46.7 million, or 16.4%, to $330.6 million in 2008, compared with $283.9 million in 2007, primarily due to the inclusion of European listing fees in 2008 of $41.0 million.

Market Technology revenues of $106.2 million resulting from OMX operations since the date of the business combination.

Increase in total operating expenses of $373.1 million, or 83.5%, to $819.9 million in 2008, compared with $446.8 million in 2007, primarily due to the inclusion of OMX’s operating expenses in 2008 of $308.6 million and NASDAQ OMX PHLX’s operating expenses of $43.8 million.

Loss on foreign currency contracts of $57.9 million included in other income (expense), net in the Consolidated Statements of Income, primarily related to the Nord Pool transaction and losses on forward currency contracts used to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams, partially offset by gains on foreign currency contracts related to our business combination with OMX AB.

Asset impairment charges of $42.2 million primarily related to a non-cash other-than-temporary impairment on a long-term available-for-sale investment security.

Improved revenues less liquidity rebates, brokerage, clearance and exchange fees from our Market Services segment which increased $151.3 million to $288.0 million in the third quarter of 2008 compared with $136.7 million in the third quarter of 2007 due to the following:

Increases in the average daily share volume and trade execution market share for New York Stock Exchange, or NYSE-listed securities, and regional-listed securities, partially offset by higher cost of revenues; and

The inclusion of OMX Market Services revenues for the third quarter 2008 of $93.9 million and the inclusion of PHLX’s Market Services revenues less liquidity rebates, brokerage, clearance and exchange fees from the date of acquisition totaling $31.8 million.

Increase in our Issuer Services segment revenues of $11.8 million, or 16.1%, to $85.0 million in the third quarter of 2008, compared with $73.2 million in the third quarter of 2007, primarily due to the inclusion of OMX’s Issuer Services revenues for the third quarter 2008 of $11.4 million.

Market Technology revenues of $24.9 million resulting from our business combination with OMX.

Increase in total operating expenses of $107.7 million, or 85.3%, to $233.9 million in the third quarter of 2008, compared with $126.2 million in the third quarter of 2007, primarily due to the inclusion of OMX’s operating expenses in the third quarter 2008 of $83.9 million and the inclusion of PHLX’s operating expenses from the date of acquisition totaling $19.0 million.

Loss on foreign currency contracts of $50.7 million included in other income (expense), net in the Condensed Consolidated Statements of Income, primarily related to the Nord Pool transaction and losses on forward currency contracts used to limit our exposure to foreign currency exchange rate fluctuations on contracted revenue streams.

Improved revenues less liquidity rebates, brokerage, clearance and exchange fees from our Market Services segment which increased $124.9 million, or 97.7%, to $252.8 million in the second quarter of 2008 compared with $127.9 million in the second quarter of 2007 due to the following:

Increases in the average daily share volume and trade execution market share for New York Stock Exchange, or NYSE-, American Stock Exchange, or Amex-, and regional-listed securities, partially offset by higher cost of revenues and lower average daily share volume and market share for NASDAQ-listed securities; and

The inclusion of OMX Market Services revenues for the second quarter of $103.9 million.

Increase in our Issuer Services segment revenues of $16.9 million, or 23.9%, to $87.6 million in the second quarter of 2008, compared with $70.7 million in the second quarter of 2007, primarily due to the inclusion of OMX’s Issuer Services revenues for the second quarter 2008 of $15.0 million and increases in Financial Products licensing and Corporate services revenues.

Market Technology revenues of $38.7 million resulting from our business combination with OMX.

Increase in total operating expenses of $125.6 million to $225.4 million in the second quarter of 2008, compared with $99.8 million in the second quarter of 2007, primarily due to the inclusion of OMX’s operating expenses in the second quarter 2008 of $108.3 million, partially offset by lower operating expenses at NASDAQ.

Improved revenues less liquidity rebates, brokerage, clearance and exchange fees from our Market Services segment which increased $65.9 million, or 52.5%, to $191.5 million in the first quarter of 2008 compared with $125.6 million in the first quarter of 2007 due to the following:

Increases in the average daily share volume for New York Stock Exchange, or NYSE-, American Stock Exchange, or Amex-, and NASDAQ-listed securities and increases in trade execution market share for NYSE- and Amex-listed securities, partially offset by higher cost of revenues; and

The inclusion of OMX Market Services revenues from the date of acquisition of $39.9 million.

Increase in our Issuer Services segment revenues of $9.3 million, or 14.0%, to $75.7 million in the first quarter of 2008, compared with $66.4 million in the first quarter of 2007, primarily due to the inclusion of OMX’s Issuer Services revenues from the date of acquisition of $4.2 million and increases in Financial Products licensing and Corporate Client Services revenues.

Market Technology revenues of $11.0 million resulting from our business combination with OMX.

Increase in total operating expenses of $34.6 million, or 31.3%, to $145.3 million in the first quarter of 2008, compared with $110.7 million in the first quarter of 2007, primarily due to the inclusion of OMX’s operating expenses from the date of acquisition of $41.5 million, partially offset by lower operating expenses at NASDAQ.

Other income (expense), net was $63.5 million in the first quarter of 2008 compared to an expense of $50.7 million in the first quarter of 2007, primarily due to decreases in net interest expense of $19.5 million and strategic initiative costs of $24.9 million, and increases in gain from unconsolidated investees, net of $26.3 million and gain on foreign currency contracts of $43.1 million.