NEW YORK, June 24, 2016 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq:NDAQ) today announced the Nasdaq Closing Cross was used for the 13th consecutive year to rebalance Nasdaq-listed securities in the entire family of U.S. Russell indexes during its annual reconstitution. Approximately 933 million shares representing $20.6 billion were executed in the Nasdaq Closing Cross in 0.8 seconds across some 2,464 Nasdaq-listed stocks.
Nasdaq official closing prices (NOCPs) determined by the Nasdaq Closing Cross are widely used throughout the industry, by firms such as Russell Investments, S&P, Dow Jones, and many mutual funds across the country. The Nasdaq Closing Cross mechanism provides market participants with transparency and consistent prices with the dissemination of imbalances, indicative, and likely clearing prices every five seconds via the Net Order Imbalance Indicator. Nasdaq’s INET technology platform processes accurate closing prices for the industry in milliseconds.
“The superior capabilities and market integrity of Nasdaq’s INET technology platform are once again evident through today’s generation of accurate prices on one of the heaviest trading sessions of the year,” said Tom Wittman, Head of Global Equities and Executive Vice President of Global Trading and Market Services at Nasdaq. “The rebalance is a critical element to ensure accurate representation and we are proud to partner with FTSE Russell for the 13th consecutive year.”
“Russell indexes reconstitution is an important and closely watched event for the US markets,” said Ron Bundy, CEO North America Benchmarks, FTSE Russell. “On ‘recon day’ each year, a significant level of market activity takes place on the US exchanges and we rely on our key exchange partners like Nasdaq to ensure year-after-year that the process goes off without a hitch.”
The Closing Cross brings together the buy and sell interest in specific Nasdaq, NYSE and NYSE MKT stocks and executes all shares for each stock at a single price, one that reflects the true supply and demand for these securities. All nationally-listed securities are eligible for the Nasdaq Closing Cross.
All Russell U.S. indexes are subsets of the Russell 3000®Index, which represents approximately 98% of the U.S. equity market. Russell U.S. Indexes allow investors to track current and historical market performance by specific market segment (large cap/small cap) or investment style (growth/value/defensive/dynamic). Approximately $6 trillion in assets are benchmarked to the Russell indexes.
Russell reconstitution day is usually one of the most highly anticipated and heaviest trading days in the U.S. equity market as asset managers seek to reconfigure their portfolios to reflect the composition of Russell's U.S. indexes. The index reconstitution process was completed today and the newly reconstituted index membership will take effect when markets open on June 27, 2016.
Please visit our website for more information on the Nasdaq Closing Cross.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to 3,700 listed companies with a market value of $9.3 trillion and over 17,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about Nasdaq and its products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq's control. These factors include, but are not limited to factors detailed in Nasdaq's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
Nasdaq Media Contacts: Joseph Christinat +1 646 441 5121 Joseph.Christinat@nasdaq.com