A Closer Look At NASDAQ’s Equity Trading Volumes

by Trefis Team
Nasdaq OMX Group
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After a strong performance in the previous year, NASDAQ (NASDAQ:NDAQ) sustained its growth trend in equity options trading volumes in January, with around 165 million contracts traded in the U.S. market, about 28% more than the prior year period. 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.

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


NASDAQ’s cash equity trading volumes continued strong growth, with around 27 billion shares traded in the U.S. market, in comparison to previous Januafy’s 23.2 billion shares. We attribute that to the growth in the overall U.S. cash equity market.  This will add on to the revenue growth from the rise in equity options volumes. Moreover, the volumes were slightly better in comparison to the previous quarter.


We have a $92 price estimate for NASDAQ’s stock, which is significantly ahead of the current market price. Our interactive dashboard shows our expectations for the company’s Q1 equity trading volumes; you can modify the key value drivers to see how they impact the company’s revenue.

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