I have to take my hat off to Bob Greifeld, the CEO of Nasdaq OMX
GAAP earnings per diluted share of $0.48 were $0.02 ahead of the analyst consensus, rising 23% from adjusted EPS in the prior-year quarter. Market volatility has promoted higher trading volumes in Nasdaq's traditional equities business and in its new derivatives operations.
If you're just thinking tech company listings, you haven't kept up
This is not your grandfather's Nasdaq. Once synonymous with high-tech listings, the company has made a big push into the lucrative business of derivatives with the acquisition of the Philadelphia Stock Exchange, the third-largest U.S. options market. With 17% of the U.S. equity options market, Nasdaq trails only CME Group
Looking forward, investors should continue to track the ongoing integration of OMX and the Philadelphia and Boston exchanges. Furthermore, the September launch of its pan-European market, Nasdaq OMX Europe, is an important milestone in Greifeld's ambition to replicate Nasdaq's success in Europe.
With the loosening of regulation in European financial markets, a number of new competitors have emerged. Project Turquoise, which counts Goldman Sachs
One of the best bargains on Nasdaq may be Nasdaq itself
Even after yesterday's run-up, Nasdaq OMX shares are changing hands at 13.1 times next year's earnings -- quite a bargain compared to the S&P 500, which is trading at 19.1 times estimated 2009 earnings. Barely a week ago, I wrote that competitor NYSE Euronext