nasdaq omx group/the (NDAQ) Key Developments
Nasdaq OMX Agrees to Pay $26.5 Million to Settle Class-Action Lawsuit Involving its Bungling of Facebook IPO
Apr 24 15
Nasdaq OMX agreed to pay $26.5 million to settle a class-action lawsuit involving its bungling of Facebook's $16 billion initial public offering. The lawsuit said Nasdaq violated federal and state laws by not disclosing technology weaknesses in its IPO systems and failing to properly design and test them for the Facebook offering. The settlement is significant because exchanges are responsible for policing their own markets and therefore are legally immune from private liability for damages incurred when they are performing regulatory functions like conducting an IPO. Facebook's first day of trading on 18 May 2012, was rife with technology problems that resulted in a delayed opening and thousands of orders being stuck in Nasdaq's system for hours. Market-making firms lost an estimated $500 million as a result, and in 2013, Nasdaq voluntarily repaid about $41.6 million to them. But retail investors must use brokers to send orders to the exchange and were not able to apply for compensation.
The Nasdaq OMX Group, Inc. Announces Quarterly Dividend, Payable on June 26, 2015; Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Non-GAAP Effective Tax Rate Guidance for Full Year of 2015
Apr 23 15
The Board of Directors of The Nasdaq OMX Group, Inc. has declared a regular quarterly dividend of $0.25 per share on the company's outstanding common stock, an increase of 67% from the prior $0.15 per share quarterly dividend. The dividend is payable on June 26, 2015, to shareowners of record at the close of business on June 12, 2015.
The company announced unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported net revenues of $507 million, down 4% from $529 million in the prior year period, driven primarily by a $29 million negative impact from foreign exchange rates. Operating income was $27 million against $184 million a year ago. Non-GAAP operating income was $235 million against $232 million a year ago. Income before income taxes was $14 million against $156 million a year ago. Non-GAAP diluted earnings per share were $0.80, up $0.02 compared to $0.78 in the first quarter of 2014. On a GAAP basis, net income attributable to Nasdaq was $9 million, or $0.05 per diluted share, compared with $103 million, or $0.59 per diluted share, in the prior year quarter. The $0.02 increase in non-GAAP EPS represents core organic EPS growth of $0.05 operationally and $0.01 due to acquisitions, partially offset by $0.04 - the $0.04 impact of changes in foreign exchange rates.
For the year of 2015, the company expects non-GAAP effective tax rate in the range of 33% to 35%.
Nasdaq to Provide SMARTS Market Surveillance Technology to Japan Electric Power Exchange
Apr 22 15
Japan Electric Power eXchange (JEPX) has announced that they will enhance their market oversight capabilities with Nasdaq's SMARTS Market Surveillance platform. The technology will give JEPX the surveillance tools to monitor spot and forward transactions of electricity for market manipulation, as well as complex analytical capabilities. The surveillance system will be operational before the full deregulation of Japan's electricity industry which is slated to enter into the country's retail sector in April 2016. Mitsubishi Electric Corporation (MELCO) will be the system integrator for this project.
The Nasdaq OMX Group, Inc. Presents at Milken Institute, Global Conference 2015, Apr-27-2015 10:45 AM
Apr 17 15
The Nasdaq OMX Group, Inc. Presents at Milken Institute, Global Conference 2015, Apr-27-2015 10:45 AM. Venue: 2025 Ave Of The Stars, Los Angeles, CA 90067, California, United States. Speakers: Adena Friedman, President.
IRGiT Agrees to Upgrade its Post-Trade Platform to Nasdaq's X-stream Clearing technology
Apr 17 15
IRGiT has agreed to upgrade its post-trade platform to Nasdaq's X-stream Clearing technology. Under the terms of the agreement with Nasdaq, IRGiT (Izba Rozliczeniowa Gield Towarowych S.A.) or the Warsaw Commodity Clearing House, will replace its existing legacy engine (Condico Clearing) with one powered by X-stream technology. The upgrade was expected to be rolled out by mid-2016. The new technology upgrade will give IRGiT improved functionality, offering scalability which will offer opportunities to expand its clearing capabilities to a variety of other asset classes, including commodities.