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Setting The Record Straight w/ Nasdaq CEO Bob Greifeld

Thursday, 7 May 2009 | 5:43 PM ET

Since it’s March low the Technology SPDR has more than doubled. But what does that mean for the tech heavy Nasdaq? Find out from CEO Bob Greifeld!

There’s some good new and some bad news.

First the good news. March set a record for trading volume, with the number of transactions even higher than they were in October, the steepest phase of the selloff. It seems big money is coming off the sidelines afraid to miss the next leg higher. And the more transactions, the merrier for exchanges such as Nasdaq.

Now the bad news. The Nasdaq's market share has slipped since October as rivals including the New York Stock Exchange have won customers by driving down trading fees. Less market share equals lower profits.

And that’s exactly what the Nasdaq revealed in their quarterly report released Thursday. Nasdaq reported 94 million, or 44 cents per share, compared with $121 million, or 69 cents per share, in the same quarter a year earlier.

That’s a decline of 22 percent in the first quarter.

Nasdaq Earnings Top Estimates
Robert Greifeld, Nasdaq OMX CEO, discusses the company's earnings report.

Nasdaq chief executive, Robert Greifeld, calls the trend "obviously disappointing," and says, "we clearly have to do a better job."

However, there’s a little more good news, the decline was better than expected and Nasdaq managed to beat the Street by a penny.

Part of the weakness stems from the fact that there have been far fewer IPOs in this environment. However, there are now 98 initial public offering applications in Nasdaq queue, Greifeld says, which could bode well going forward. Still, analysts see their current losses as worrisome.

To see our full interview with Robert Greifeld, including his thoughts on the bank stress tests please watch the video above.


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Trader disclosure: On May 7th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (BAC), (F), (TX); Seygem Asset Management Is Short (DVN); Finerman's Firm Owns (CSCO); Finerman's Firm And Finerman Own (BAC) Preferred Shares And Are Short (BAC); Finerman's Firm Owns (C) Preferred Shares And Is Short (C); Finerman's Firm Owns (MSFT) And Owns (MSFT) Put Spreads; Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm Is Short (IJR),(MDY) (SPY), (IWM), (USO), (BBT)

Terranova Owns (GENZ), (ABT), (XBI); Terranova Is Long (DIS) Call Spreads; Terranova Is Short June Crude Oil; Terranova Is Short (JPM), (WYNN), (X), (MS), (JOYG), (HES), (BRCM), (POT); Terranova Is Short (IBM) Call; Terranova Is Short (XOM) Call Spreads

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV); Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.

Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (CAL), (DLR), (EPR), (EXR), (IGE), (MEE), (DBC), (DBV), (DBA), (SKT), (UA), (CLB), (WBMD): Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co: Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights


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