NDAQ » Topics » Overview of transaction rationale

This excerpt taken from the NDAQ 8-K filed Nov 20, 2006.

Overview of transaction rationale

NASDAQ and LSE are both pre-eminent equity markets in their respective countries. NASDAQ believes that bringing together the two organisations would present listed companies, traders and investors with a leading global equity market place, based on dynamic industry leadership. A transaction presents the potential to create:

 

  the leading global, cross-border equity market platform giving issuers the ability to dual-list simultaneously in London and New York;

 

  the leading global exchange by number of listings featuring over 6,400 listed companies with a total market capitalisation of approximately £6.3 trillion ($11.8 trillion) presenting a strong platform for companies of all sizes and the natural choice for international issuers;

 

  the most active global equity exchange, with an average daily volume of 7.4 billion shares traded, 5.5 million average daily bargains and an average daily value traded of approximately £41.5 billion ($75.6 billion);

 

  significant efficiencies which would benefit the users of both platforms, and fully execute on the efficiencies that both companies offer their market participants; and

 

  a combined entity well positioned to lead further consolidation and compete effectively with any transatlantic or European combination.
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