The Bourse Supremacy
Nasdaq (NDAQ) shares have been breaking out amid its purchase of the Boston Exchange Tuesday and its deal for Nordic OMX last month. What’s the trade as NYSE, Nasdaq and Middle East money grapple for world exchange domination?
Bob Greifeld, CEO of the Nasdaq, tells the desk that Tuesday’s announcement of the acquisition of the Boston Stock Exchange is an opportunity for Nasdaq to further increase its operating leverage. Investors and traders alike will win with the deal, he says.
The exchanges are in the midst of a period of consolidation at home and abroad, and Nasdaq is clearly in the fray. In September it locked in a 47% interest in the Nordic OMX, although the oil-rich Middle East nation of Qatar has been aggressively looking to take a bigger stake itself. Greifeld says he feels comfortable with his company’s position in the OMX, although he won’t comment on if he will go higher on Nasdaq’s offer for the OMX if a bidding war with Qatar ensues. The deal has to make money for Nasdaq’s business in 2009, he says, otherwise it isn’t worth doing.
Nasdaq is a favorite among the desk, and not just because Fast Money airs from its flagship location in Times Square.
Pete Najarian thinks the acquisition of the Boston Stock Exchange gives NDAQ better leverages to options trading which will strengthen the core business.
Karen Finerman is bullish on NDAQ from a valuation perspective, although she likes the entire exchange space.
Guy Adami is a believer, too. The Nasdaq, in particular, is a volume story. Heavy volumes today could be light volumes a year from now, he says. “You gotta own these names.”
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Trader disclosure: On Oct 2, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (ATVI), (EMC); Najarian Owns (BIDU), (UA), (PDLI); Najarian Owns (GS) Options; Finerman Owns (GS); Finerman's Firm Owns (DAI), (LEN), (NVT), (NMX), (NYX), (KSS); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts