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No. 2 - Global Trading Domination

NASDAQ (NDAQ) revenue climbed a whopping 42% last quarter, partly at the expense of the New York Stock Exchange (NYX). Despite gaining market share at home, investors are concerned about the NASDAQ’s global footprint, damaged after a failed merger with the London Stock Exchange. Is there a trade in the NASDAQ?

Dylan Ratigan explains The NYSE just completed a merger with Paris-based Euronext, but during the last quarter the NASDAQ failed in their attempt to merge with the London Stock Exchange.

NASDAQ Chief Executive Bob Greifeld joins the guys to address the concerns.



Dylan asks how much momentum does the NASDAQ have?

Mr. Greifeld says earnings are up 94% year on year. And “matched market share” for March is up 9 billion shares as compared to March of 2006.

Dylan asks if all the recent volatility adds volume?

Mr. Greifeld says yes.

Dylan asks what are the ambitions for derivative trading at the NASDAQ?

Mr. Greifield explains the NASDAQ is launching an options exchange which should be on-line by 3Q. And he adds the NASDAQ is looking at other strategic alternatives.

Dylan asks about the 144A market?

Mr. Greifeld says the 144A private placement market is the largest non-automated market on the planet. NASDAQ will be bringing a level of automation to it. He explains that in 2006 more capital was raised in the private placement market than on the NASDAQ, NYSE and AMEX combined.

After the interview, Eric Bolling says for the NASDAQ to fly, it has to go global. Eric thinks it’s the NYSE that has the tailwind.

Guy Adami says NASDAQ trades 24 times forward earnings. NYX trades around 38 times. For no other reason investors should own it on a valuation basis.

Questions? Comments? fastmoney@cnbc.com

Trader disclosure:
On APR 19, 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 (SWY) Najarian Owns (AXP), (HNZ), (MON), (MOT), (NDAQ), (XLF), (MPEL) Bolling Owns (NMX), (MPEL), Gold, Silver, Natural Gas Corn; Bolling Is Short Soybeans