Will NASDAQ’s Transaction-Based Revenues Recover In 2016?
NASDAQ’s transaction-based revenues include revenues from equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities (FICC) trading and clearing, and the access and broker services businesses. The revenues – excluding transaction expenses – fell 7% in 2015 compared to 2014. The most significant declines were seen in equity derivative and FICC revenues. Equity derivative revenues were down almost 20% year-on-year (y-o-y), primarily due to a decrease in U.S. gross revenue capture and a decline in its overall market share, while FICC revenues dropped 25% due to the termination of an eSpeed (an acquisition made by NASDAQ in 2013) technology licensing customer contract.
However, we expect NASDAQ’s transaction-based revenues to recover in 2016, making strides in equity derivatives and cash equity revenues. While the increase in equity derivatives revenues will largely be a result of its acquisition of ISE, we attribute the expected 6% y-o-y gain in cash equity revenues to a higher volume forecast of U.S. cash equities and the expansion of its equities footprint in North America through the acquisition of Chi-X Canada.
See the links below for more information and analysis about NASDAQ:
- How Much Value Is International Securities Exchange (ISE) Acquisition Expected To Add To NASDAQ?
- What Is NASDAQ’s Fundamental Value Based On Expected 2016 Results?
- What Percentage of Trades In U.S.-Listed Equities Is Matched By Nasdaq?
- How Is NASDAQ’s Revenue & EBITDA Compensation Expected To Change in 2016?
- What’s NASDAQ’s Revenue And EBITDA Breakdown In Terms Of Different Operating Segments?
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap