Nasdaq OMX Extends EGX Contract, Launches SMARTS
Nasdaq OMX Group Inc. (NDAQ) has announced the extension of its contract with the Egyptian Exchange (EGX.V) for five more years. The company will continue to offer its globally leading X-stream trading technology to EGX till Jan 2020.
EGX has been Nasdaq’s technology client since 1999. In 2006, EGX became Nasdaq’s strategic partner through the Egypt for Information Dissemination (:EGID). Since 2008, Nasdaq has been offering X-stream trading technology to EGX, thereby managing trading risks even during times of extreme volatility.
The contract extension shows Nasdaq’s success in preserving the trust of Egyptian Exchange for 14 years and also meeting the demand of providing the best technology and resources to the company’s market clients.
Last week, Nasdaq also announced the launch of SMARTS Surveillance for Energy which helps in protecting against any trading manipulation across physically and financial energy markets.
Nasdaq’s X-stream, INET and SMARTS technologies are well positioned to contribute to growth as the industry is becoming more focused on solutions to effectively manage risk. These factors also aid in attracting new listings and driving client activity in the recovering economic environment.
Although one cannot overlook the technical anomalies faced by Nasdaq in the past couple of years, we believe that it is aggressively focusing on being more technically competent to respond to the changing industry dynamics and exploit opportunities for gaining scale. These efforts are also supporting growth in the company’s non-transaction revenue base.
Nasdaq’s Zacks Consensus Estimate for 2014 is pegged at $2.90 while for 2015, it is $3.29. Long-term growth for the stock is targeted at 10.5%.
Currently, Nasdaq OMX has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the finance sector that are worth reckoning include AllianceBernstein Holding L.P. (AB), AmTrust Financial Services, Inc. (AFSI) and Arlington Asset Investment Corp. (AI). All these stocks sport a Zacks Rank #1 (Strong Buy).
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Read the Full Research Report on AB
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