Nov. 11, 2014, 4:47 PM
- "The exchanges (apparently ICE's NYSE and NDAQ) who have a hand in this and seek to benefit from the onerous version of a trade-at basically put the screws to us," says Michael Masone, legal counsel for equities at Citigroup (NYSE:C), speaking at a SIFMA-sponsored conference.
- At issue is a SEC pilot program meant to boost trading in smaller-cap names. One of the provisions - the so-called "trade-at" rule - is a stealth attempt at hurting brokerages which run private trading systems (dark pools), said both JPMorgan (NYSE:JPM) and Citi at the conference.
- The one-year program - if approved (the SEC began seeking public comment this month) - would begin next year and widen the minimum tick at which bids and asks are quoted on exchanges to more than a penny. The plan would create four groups of companies with market caps of less than $5B. One segment would require quotes in increments of a nickel or more, and another will require both quotes and trades to be in five-cent steps. In a third group, trading will be discouraged in dark pools. A fourth group would trade normally.
- Opposition has been pretty fierce - even within the SEC - but the agency for now has decided to move forward anyway.
Oct. 24, 2014, 8:09 AM
Oct. 24, 2014, 8:08 AM
- Non-GAAP diluted EPS of $0.72 up 9% from a year ago.
- Non-transaction based revenue totaled 74% of overall Q3 revenue
- 0.7M shares, or $27M of stock repurchased during Q3 at average price of $41.39. The board has authorized additional $500M of stock repurchase bringing total authorized repurchase to $560M
- Market Services revenue (39% of total) of $194M down from $200M a year ago.
- Derivatives revenue (13% of total) of $66M slipped from $71M.
- Cash equities revenue (10% of total) of $52M up from $46M.
- Fixed Income revenue of $13M down from $18M in 3Q13
- Access and Broker Services revenue (13% of total) of $63M down from $65M.
- Information Services revenue (23% of total) of $114M down from $117M.
- Market Data revenue (19% of total) of $92M down from $99M.
- Technology Solutions revenue (26% of total) of $130M down from $132M.
- Operating expense guidance lowered to $1.21B-$1.21B from $1.22B-$1.25B.
- Conference call at 8 ET
- NDAQ No trades PM
- Previously: NASDAQ beats by $0.02, misses on revenue
Oct. 24, 2014, 7:06 AM
Oct. 23, 2014, 5:30 PM
Oct. 23, 2014, 4:33 AM
- U.S. options market operators have agreed in recent months on the need for new automatic trading halts when stock options prices suddenly surge or plunge, similar to the "Limit Up/Limit Down" rules, fully implemented this past May.
- Sources tell Reuters that the first part of the plan, which creates a uniform set of rules on how to deal with erroneous trades, is soon to be filed with regulators.
- Related Stocks: NDAQ, ICE
Oct. 2, 2014, 10:24 AM
- "We are constructive on Nasdaq OMX's (NDAQ +0.3%) progress over many years in creating a lower-risk, high-recurring revenue business model with solid execution, especially in cost management," says analyst Brian Bedell, upgrading to a Buy with price target lifted to $49 from $46. "We see the story as increasingly gaining traction among investors and improving NDAQ's P/E from subdued levels."
- Also boosted to a Buy is IntercontinentalExchange (ICE +1.5%), with price target lifted to $219 from $202.
- CME Group (CME +1.5%), however, is Bedell's top pick in the exchange sector, and he lifts the price target to $95.
- Previously: Brisk September business at CME
Jul. 28, 2014, 3:06 PM
- "The maker fee is an incentive ... for people to provide liquidity into the market," says Nasdaq OMX (NASDAQ:NDAQ) CEO Robert Greifeld, speaking on the sidelines of a congressional-sponsored roundtable about equity market reforms. "To be rewarded for that in some way I think is fair and legitimate."
- However, he says, the $0.30 fee "was not designed by God," and notes it's been at that level for 10 years.
- The so-called "maker-taker" model is receiving heightened scrutiny following the Michael Lewis book which questioned the practice of paying brokers an an incentive to boost liquidity, and the major exchanges are competing with market-makers like KCG Holdings for order flow, perhaps enticing brokers to send orders to where they get paid the most, instead of where their customers get the best execution.
- ICE CEO Jeffrey Sprecher also advocated lower fees, but goes further in suggesting a ban on maker-taker pricing altogether.
Jul. 24, 2014, 3:31 PM
- Non-GAAP diluted EPS of $0.70 up 13% from a year ago.
- Overall organic growth of 4% and 9% organic growth in non-transactional segments. Non-transaction based revenue totaled 74% of overall Q2 revenue, and gained 19% from a year ago.
- 2.6M shares, or $93M of stock repurchased during Q2 at average price of $36.46.
- Market Services revenue (39% of total) of $202M up from $190M a year ago.
- Derivatives revenue (13% of total) of $66M slipped from $76M.
- Cash equities revenue (11% of total) of $57M up from $51M.
- Fixed Income revenue of $14M flat.
- Access and Broker Services revenue (12% of total) of $65M up from $63M.
- Information Services revenue (23% of total) of $123M up from $107M.
- Market Data revenue (19% of total) of $101M up from $89M.
- Technology Solutions revenue (26% of total) of $138M up from $96M.
- Operating expense guidance lowered to $1.22B-$1.25B from $1.25B-$1.285B.
- Previously: NASDAQ beats by $0.02, beats on revenue
- NDAQ +2.8%
Jul. 24, 2014, 10:25 AM
Jul. 24, 2014, 7:16 AM
Jun. 26, 2014, 1:08 PM
Jun. 17, 2014, 12:41 PM
- "The market seems to have spoken," writes the team at MarketWatch blogging the hearing. "Translation: Not much appetite to dramatically change the rules."
- E*Trade (ETFC +6.5%), Schwab (SCHW +5.3%), Ameritade (AMTD +4.5%), Interactive Brokers (IBKR +2%).
- The stock exchange operators are performing as well: IntercontinentalExchange (ICE +0.9%), and Nasdaq OMX (NDAQ +1.1%).
May. 16, 2014, 11:56 AM
- Raymond James upgrades Bank of the Ozarks (OZRK -0.2%) to Outperform with $67 PT.
- Home Bancshares (HOMB +1.8%) is boosted to a Buy at both KBW and Drexel Hamilton
- Credit Suisse upgrades NASDAQ OMX (NDAQ -0.6%) to Buy with $42 PT.
- Bank of America boosts Protective Life (PL +0.1%) to Buy and sets a $62 PT.
- KBW upgrades Stonegate Mortgage (SGM +4.4%) to Outperform with $17 PT after the company reported earnings yesterday.
- Bank of America downgrades Assurant (AIZ -1.3%) to Under Perform with a $73 PT.
May. 13, 2014, 7:29 PM
- U.S. exchanges are now unified in canceling some wild trades in (AOL -3.1%) in a two-minute span just 10 minutes before the close.
- The odd trades, traced to a trading firm's mistake, also affected dealing in Nabors (NBR), Lorillard (LO -1.3%), Marathon Petroleum (MPC -0.3%), Canadian Natural Resources (CNQ +0.3%), Nasdaq OMX (NDAQ -0.9%) and Caterpillar (CAT +0.9%), among others -- but those trades will be left standing.
- The NYSE will bust AOL trades of $33.17 or below, while Nasdaq, Direct Edge and NYSE Arca will cancel those at $33.16 and below.
May. 12, 2014, 3:43 AM
- Nasdaq OMX (NDAQ) has appointed Carlyle (CG) CFO Adena Friedman as a co-President in a move that the WSJ reports makes her the leading candidate to replace Robert Greifeld as CEO of the exchange operator when he departs. Nasdaq has been working on a succession plan since last year.
- Friedman, who will become President of Global Corporate & Information Technology solutions, returns to the exchange operator after leaving for Carlyle in 2011 following an initial 17-year stint at Nasdaq.
- The company also named Hans-Ole Jochumsen as a co-president with Friedman. Jochumsen will head the firm's Global Trading & Market Services.
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