FEDERATION OF EURO-ASIAN STOCK EXCHANGES
As the market gains greater trust, it can
launch organized trading in new instruments,
such as indices, options and futures.
By now, the market is close to reaching
critical mass. Local end investor awareness of
the market increases, leading to a surge in
investments and a broader ownership base of
listed entities. International trading firms start
seeing the market as a feasible investment
opportunity. If traders can more easily learn
market rules, and understand how trading,
clearing and settlement works, trust comes
faster. Naturally, adapting to international best
practices and standards will be important.
Also, by enabling remote members, markets
can attract trading from medium-sized firms
that cannot afford a local presence but have a
regional office.
As volumes increase, the market can improve
business development, thereby making itself
more attractive to a broader investor base. At
the same time, larger volumes mean lower
unit costs, which can facilitate more
aggressive pricing strategies.
Finally, the mature market has adopted most
commonly accepted standards and offers a
wide range of products in a transparent and
fair manner. For many markets in this
category, business development may focus
on international expansion and partnerships,
paired with cost control. The local economy
benefits from a vibrant capital market that
serves as a source of capital for new
investments.
To tackle the large volume drops in the wake
of the current financial downturn and to
prepare for future growth, markets must think
about their current position and future vision.
How can the market become more relevant?
How can it reach critical mass? There is a
wide range of potential actions. Some, though
long term, need to be started now to have the
desired future effect. Other actions have more
immediate consequences and can give a
ANNUAL REPORT APRIL 2009
quick boost to market relevance. The plan
does not have to be grand and cover every
step to full maturity, but without a long term
strategic plan, a market is likely to lag in
comparison to other venues. So, take a step
back and review your situation. What is your
vision for the future and what is your plan to
get there?
Advisory Services from NASDAQ OMX is
uniquely qualified to provide strategic
guidance and help marketplaces prepare for
the future. As an exchange owner, operator
and technology provider, NASDAQ OMX has
deep exchange industry business expertise
and hands-on operational experience. We
understand first-hand how marketplaces
operate, the challenges they face and the
complex technology infrastructures that
support them.
We focus on the core businesses of the
securities industry: issuer services, trading,
clearing, order routing, market data,
surveillance, settlement, depository, and
registry. Our approach is practical and issue
driven. We view benchmarking against best
practices as an essential tool to align different
stakeholder views as changes are introduced
and implemented. Our management
consultants have broad experience in
strategy, operations and change
management. For each Advisory assignment,
we also bring in subject matter experts from
across the NASDAQ OMX organization.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's
largest exchange company. It delivers trading,
exchange technology and public company
services across six continents, with over 3,800
listed companies. NASDAQ OMX offers
multiple capital raising solutions to companies
around the globe, including its U.S. listings
market, NASDAQ OMX Nordic, NASDAQ
OMX Baltic, NASDAQ OMX First North, and
the U.S. 144A sector. The company offers
trading across multiple asset classes
including equities, derivatives, debt,
commodities, structured products and
exchange-traded funds. NASDAQ OMX
technology supports the operations of over 70
exchanges, clearing organizations and central
securities depositories in more than 50
countries. NASDAQ OMX Nordic and
NASDAQ OMX Baltic are not legal entities but
describe the common offering from NASDAQ
OMX exchanges in Helsinki, Copenhagen,
Stockholm, Iceland, Tallinn, Riga, and Vilnius.
For more information about NASDAQ OMX,
visit www.nasdaqomx.com.
To date, NASDAQ OMX Advisory Services has
provided strategic guidance to more than 60
exchange industry clients in 25 countries.
Currently NASDAQ OMX supplies technology
to the following FEAS marketplaces: Abu
Dhabi Securities Market, Bahrain Stock
Exchange, Egyptian Exchange, Istanbul Stock
Exchange, Iraq Stock Exchange, Palestine
Securities Exchange and Zagreb Stock
Exchange.
CONTACT INFORMATION
Contact Name Mr. Adam Kostyal
E-mail [email protected]
Website www.nasdaqomx.com
PAGE 15