NASDAQ Sees Growth In Cash Equity and Equity Options Trading Volumes, Market Share In October

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After a strong performance in previous three quarters, NASDAQ (NASDAQ:NDAQ) sustained its growth trend in equity options trading volumes in October, with around 133 million contracts traded in the U.S. market, about 24% more than the prior year period trading volumes. This was primarily due to a substantial gain in market share to over 41%, driven by the acquisition of ISE in 2016. Moreover, we believe the strengthening of the U.S. dollar and other macro factors contributed to increased volatility in the market, and consequently drove trading volumes.

We have a $92 price estimate for NASDAQ’s stock, which is significantly ahead of the current market price.

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NASDAQ generates around 18% of its revenues from this asset class. With around 24% growth in volumes, we expect significant top line growth from this segment.

After a slight improvement in the previous quarter, NASDAQ’s cash equity trading volumes continued its growth in October, with around 23.7 billion shares traded in the U.S. market, in comparison to October 2016’s 22.5 billion shares. NASDAQ generates around 18% of its revenues from this asset class. With around 4% growth in volumes and a positive impact of foreign exchange rates on European trading, we expect significant top line growth from this segment.

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