Nasdaq Maintaining Volume – US-FOREX.US
Though June has proven to be a weaker volume month for Nasdaq OMX Group
, most analysts expected a summer lull after record volatility. The exchange’s second quarter volumes of 10.7 billion were up 48% from last year but down 2% from last quarter. Nasdaq’s matched market share is beginning to stabilize; in June was 221%, unchanged from May. The average earnings per share estimate for Nasdaq is 0.47. Credit Suisse
analysts Howard Chen, Adam Eling and Ashley Serrao raised their estimate from 0.46 to 0.47 in light of the European derivatives market improving slightly. Nasdaq’s June daily derivatives volumes were 303,000 contracts, down 37% from last year but up 1% from May. Credit Suisse has maintained its 2009 EPS estimates at 1.85 and 2010 estimates at 2.25. Cash equities volumes may impact Nasdaq’s earnings as U.S. average daily volume industry wide went down 14%. Transaction fees made up 37% of William Blair & Company analysts Mark Lane and Katherine McCauley’s earnings projections, which were 0.46 EPS. European cash equities volumes for this quarter were 13.7 million, up 14% from a year ago and 3% from the first quarter. Pali Capital analysts Christopher Allen and Avi Ghosh attribute Nasdaq’s profitability to an increase in market share on Nasdaq OMX BX, its creation from the Boston Stock Exchange acquisition last year, and increased dark liquidity. BX offers a 0.006 per share rebate for providing liquidity on Tapes A and C. Non-displayed orders made up 16% of the exchange’s matched market share in June. Pali lowered its EPS estimate from 0.51 to 0.49. Nasdaq’s future earnings could be impacted by a series of management departures, the latest of which being Magnus Bocker, president of Nasdaq OMX and the exchange’s Asia head, who will be leaving to become chief executive officer of the Singapore Exchange.
NYSE Euronext
reported its earnings on July 30 to the tune of a GAAP net loss of 182 million or -0.70 per diluted share for the second quarter, down from a net income second quarter last year of 195 million or 0.73 per diluted share. The exchange attributes most of that loss to a one-time termination charge for NYSE Liffe Clearing. The IntercontinentalExchange
reported a consolidated GAAP net income of 72 million for the second quarter, a 15% decrease from 85 million in the first quarter. The ICE’s earnings report came out August 4. Nasdaq will report its earnings Thursday.