Demand for Nasdaq tech prompts record earnings

Nasdaq technology solutions and market technology see combined 37% increase that drove total sales to record $559 million.

Nasdaq reported record high revenues in the second quarter, seeing an 8% increase year-on-year.

Technology solutions and market technology saw a hefty increase in sales which constituted over 42% of the exchange’s total net revenue.

Market Technology revenues increased by $10 million this past year, totaling $69 million in 2016. This comes alongside an increase of $28 million in technology solutions revenues, now totaling at $163 million.

Growth in market technology sales was primarily driven by increased income from software licensing and support, and surveillance products.

A portion of the technology solutions revenues however, was due to the acquisitions of Marketwired and Boardvantage, but 30% of organic revenue growth came primarily from market technology contracts.

Data Products revenues were up $8 million, which now total $107 million.

Bob Greifeld, Nasdaq CEO, said: “Nasdaq has experienced broad-based demand for our distinctive technology, services and solutions, resulting in continued organic growth from each of our business segments”.

The exchange CEO went on to claim that material expansion in the SMARTS surveillance product’s customer base has stood out as a significant second quarter development, in addition to the acquisition of the ISE.

Derivatives sales were up 2% from last year, which was accompanied by a 1% increase in equity sales and a 12.5% decrease in Fixed Income, currency and commodities (FICC).

Nasdaq claimed the FICC revenues decrease was due to the negative impact of Nasdaq futures trading incentives and a decline in US fixed income sales.