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Press release from GlobeNewswire (a Nasdaq OMX company)

NASDAQ OMX Reports Fourth Quarter and Full Year 2012 Results

Thursday, January 31, 2013

NASDAQ OMX Reports Fourth Quarter and Full Year 2012 Results04:00 EST Thursday, January 31, 2013 Fourth quarter 2012 non-GAAP diluted EPS of $0.64, tied for the second highest quarterly performance in the firm's history; fourth quarter 2012 GAAP diluted EPS of $0.50 Fourth quarter net exchange revenues1 reach $419 million, the highest non-GAAP net exchange revenue level of the year. On an organic basis (constant currency and excluding acquisitions) fourth quarter revenue declined by 3 percent year-over-year Non-transaction based revenues were 71 percent of fourth quarter net exchange revenue, tied for the highest level in NASDAQ OMX's history 2012 non-GAAP operating expenses of $918 million came in below previous guidance range of $922 to $935 million Repurchased 11.5 million shares at an average price of $23.82 for a total cost of $275 million in 2012 NEW YORK, Jan. 31, 2013 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the fourth quarter and full year 2012. Fourth quarter net exchange revenues were $419 million, driven by particularly strong growth in our Corporate Solutions business. Operating expenses were $244 million in the fourth quarter of 2012, compared to $259 million in the prior year quarter. On a non-GAAP basis, fourth quarter 2012 operating expenses were $233 million, flat compared to the prior year quarter. Fourth quarter 2012 non-GAAP diluted earnings per share were $0.64, up $0.01 compared to the prior year quarter. Non-GAAP earnings per share in the fourth quarter of 2012 exclude $8 million of restructuring expenses, $4 million of merger and strategic expenses, $3 million in sublease reserve expenses, $2 million of special legal expenses, and a $7 million value added tax refund related to prior year periods. On a GAAP basis, net income attributable to NASDAQ OMX for the fourth quarter of 2012 was $85 million, or $0.50 per diluted share, compared with $82 million, or $0.45 per diluted share, in the prior year quarter. "NASDAQ OMX ended 2012 with a strong finish to the year, driven by a significant pick-up in corporate activity coupled with solid performance in our U.S. options, U.S. proprietary data products and global index businesses," said Bob Greifeld, CEO, NASDAQ OMX. "While the volume environment remained weak in the fourth quarter, we continued to expand our diversified, global portfolio of businesses, increasing our stream of recurring revenues, generating strong cash flows and delivering attractive returns for our shareholders."Mr. Greifeld continued, "Looking to 2013, we are encouraged to see positive, multi week inflows from retail investors into U.S. equity mutual funds and some signs of improvement in the volume environment. As we move through the year, we will remain focused on strengthening our franchise by ensuring we have the talent, structure and business portfolio to deliver for our clients and shareholders. I believe we are creating the foundation for growth and outperformance regardless of the economic, business or volume cycles."Lee Shavel, NASDAQ OMX's EVP and Chief Financial Officer, said: "Our cost reduction plan was successful and we exited the year with $50 million in run-rate savings. In 2012 we generated in excess of $500 million in free cash flow, and we continued to deploy our cash flow in ways that benefit our investors. During the year, we returned $275 million to shareholders through buybacks, $65 million through our dividend program, and we purchased a number of attractive assets, including BWise, NOS and the index business of Mergent, Inc., including Indxis. We also recently announced the proposed acquisition of Thomson Reuters' Investor Relations, Public Relations and Multimedia Solutions businesses. I fully expect these acquisitions, coupled with our ongoing capital deployment efforts to drive substantial shareholder value in the years ahead." At December 31, 2012, the company had cash and cash equivalents of $497 million and total debt of $1,976 million, resulting in net debt of $1,479 million. This compares to net debt of $1,611 million at December 31, 2011. During the fourth quarter of 2012, the company repurchased 2.1 million shares of outstanding common stock under a share repurchase program, for a total of $50 million. Since January 2010, NASDAQ OMX has repurchased $1,172 million of outstanding common stock, representing 53.4 million shares at an average price of $21.97.BUSINESS HIGHLIGHTSMarket Services(64% of total net exchange revenues) - Net exchange revenues were $270 million in the fourth quarter of 2012, down $11 million when compared to the fourth quarter of 2011.Cash Equities (11% of total net exchange revenues) – Total net cash equity trading revenues were $47 million in the fourth quarter of 2012, down $12 million compared to the fourth quarter of 2011. A lower level of industry trading volumes and a slightly lower market share were partially offset by positive revenue capture in both the U.S. and Nordic equity markets.Derivatives (18% of total net exchange revenues) – Total net derivative trading and clearing revenues were $75 million in the fourth quarter of 2012, up $2 million compared to the fourth quarter of 2011. U.S. derivative revenues increased 10% year-over-year on market share gains and positive revenue capture per traded contract. European derivative and clearing revenues declined $2 million on lower volumes.Access and Broker Services (15% of total net exchange revenues) – Access and broker services revenues totaled $65 million, up $4 million compared to the fourth quarter of 2011. The increase was primarily driven by the uptake of new products including 40G connectivity.Market Data (20% of total net exchange revenues) – Total Market Data revenues of $83 million reflect a $4 million decrease compared to the year ago quarter. The decrease was driven by a lower level of audit collections and lower U.S. tape revenues.Issuer Services (24% of total net exchange revenues) – Revenues were $101 million in the fourth quarter of 2012, up $10 million compared to the fourth quarter of 2011. The increase was driven by strength in the Corporate Solutions business which saw double digit revenue growth in the GlobeNewswire, Directors Desk and Surveillance businesses. In addition, Corporate Solutions revenues benefited from the acquisitions of BWise in May 2012 and Glide Technologies in October 2011. The Global Index Group's revenues increased by $1 million, or 8%, year-over-year driven by an increase in the underlying assets associated with licensed financial products due to product growth and newly executed product licenses.Market Technology (12% of total net exchange revenues) – Revenues of $48 million in the fourth quarter of 2012 were flat compared to the fourth quarter of 2011. The Market Technology segment had exceptionally strong order intake of $95 million in the fourth quarter of 2012, rounding out a record year for new business wins.COST GUIDANCE – For the full year of 2013, core operating expenses, including $50 million of expenses related to 2012 acquisitions, are expected to be in the range of $910 million to $930 million, with an additional $50 million to $60 million in incremental new initiative spending, resulting in total operating expenses in the range of $960 million to $990 million. This guidance excludes expenses related to our previously announced cost reduction plan, expenses for the proposed voluntary accommodation program and special legal expenses. We anticipate that the effective tax rate may increase in 2013, due to the potential loss of tax deductions resulting from changes in tax laws in certain jurisdictions. The impact of such tax law changes has not yet been determined. As a result, we expect a 2013 effective tax rate in the range of 34% to 37%.CORPORATE HIGHLIGHTS Agreement to Acquire Thomson Reuters' IR, PR and Multimedia businesses. Announced agreement with Thomson Reuters to acquire the Investor Relations, Public Relations and Multimedia Solutions businesses, which provide insight, analytics and communications solutions to more than 7,000 clients worldwide. Upon completion of the transaction, these complementary businesses will be integrated into NASDAQ OMX Corporate Solutions. The combination, which is subject to customary regulatory approvals, will create a global corporate services portfolio, with more diversified and comprehensive offerings to sell to NASDAQ OMX's listing and corporate clients.Acquired the Index Business of Mergent, Inc., including Indxis. Announced and closed on the first acquisition in the Global Index Group - the index business of Mergent, Inc., including Indxis. With this acquisition, the Global Index Group is one of the largest providers of dividend-themed indexes based on benchmarked assets.Appointment of Chief Information Officer. Appointed Bradley Peterson as Executive Vice President and Chief Information Officer. Mr. Peterson joins NASDAQ OMX from Charles Schwab. He will focus on driving the design and development of scalable and reliable solutions to further the growth and expansion of core products and services and underlying tools and technologies used by NASDAQ OMX customers.Combination of Market Technology and Corporate Solutions businesses. Announced the combination of the Market Technology and Corporate Solutions businesses, which will operate under the name Global Technology Solutions and will be led by Anna Ewing, Executive Vice President, Global Technology Solutions. The combination will enable increased focus, drive growth across the company's technology businesses and create a dedicated software and technology management structure. Combination of Global Data Products and Global Index Group businesses. Announced the combination of the Global Data Products and Global Index Group businesses, which will operate under the name Global Information Services and be led by John Jacobs, Executive Vice President, Global Information Services. The combination will enable greater customer focus and leverage of NASDAQ OMX's scalable technology, product innovation and robust distribution channels. About NASDAQ OMX Group The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels economies and provides transformative technologies for the entire lifecycle of a trade - from risk management to trade to surveillance to clearing. In the U.S. and Europe, we own and operate 23 markets, 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed income, derivatives, commodities, futures and structured products. Able to process more than 1 million messages per second at sub-40 microsecond speeds with 99.99+% uptime, our technology drives more than 70 marketplaces in 50 developed and emerging countries into the future, powering 1 in 10 of the world's securities transactions. Our award-winning data products and worldwide indexes are the benchmarks in the financial industry. Home to approximately 3,300 listed companies worth more than $6 trillion in market cap whose innovations shape our world, we give the ideas of tomorrow access to capital today. Welcome to where the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more, visit www.nasdaqomx.com. Follow us on Facebook (www.facebook.com/NASDAQ) and Twitter (www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)Non-GAAP Information In addition to disclosing results determined in accordance with GAAP, NASDAQ OMX also discloses certain non-GAAP results of operations, including, but not limited to, net income attributable to NASDAQ OMX, diluted earnings per share, net exchange revenues, operating income, and operating expenses, that make certain adjustments or exclude certain charges and gains that are described in the reconciliation table of GAAP to non-GAAP information provided at the end of this release. Management believes that this non-GAAP information provides investors with additional information to assess NASDAQ OMX's operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance. The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.Cautionary Note Regarding Forward-Looking Statements Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. NASDAQ OMX cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections about our future financial results, growth, trading volumes, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain strategic and capital return initiatives, (iii) statements about our integrations of our recent acquisitions and (iv) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to, NASDAQ OMX's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in NASDAQ OMX's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on NASDAQ OMX's website at http://www.nasdaqomx.com and the SEC's website at www.sec.gov. NASDAQ OMX undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.1 Represents revenues less transaction rebates, brokerage, clearance and exchange fees.NDAQF     The NASDAQ OMX Group, Inc.  Consolidated Statements of Income  (in millions, except per share amounts)                  Three Months Ended  Year Ended    December 31,  September 30,  December 31,  December 31,  December 31,    2012  2012  2011  2012  2011 Revenues: (unaudited)(unaudited)(unaudited)(unaudited)   Market Services   $ 603  $ 603  $ 698  $ 2,560  $ 2,886Cost of revenues:            Transaction rebates   (249)  (250)  (324)  (1,104)  (1,344) Brokerage, clearance and exchange fees   (84)  (84)  (93)  (352)  (404) Total cost of revenues   (333)  (334)  (417)  (1,456)  (1,748) Total Market Services revenues less transaction rebates, brokerage, clearance and exchange fees   270  269  281  1,104  1,138             Issuer Services   101  93  91  375  361 Market Technology   48  47  48  184  183            Revenues less transaction rebates, brokerage,  clearance and exchange fees   419  409  420  1,663  1,682Operating Expenses:            Compensation and benefits   116  113  113  454  458 Marketing and advertising   7  6  9  26  24 Depreciation and amortization   27  26  28  104  109 Professional and contract services   26  24  23  96  83 Computer operations and data communications   10  18  15  60  65 Occupancy   25  22  22  93  91 Regulatory   7  8  9  34  35 Merger and strategic initiatives   4  (3)  1  4  38 Restructuring charges   8  10  --   44  --  General, administrative and other   14  15  39  58  83 Total operating expenses   244  239  259  973  986            Operating income   175  170  161  690  696             Interest income   3  2  3  10  11 Interest expense   (25)  (24)  (26)  (97)  (119) Asset impairment charges   --   --   (18)  (40)  (18) Dividend and investment income   --   --   --   --   1 Loss on divestiture of business   --   (14)  --   (14)  --  Income (loss) from unconsolidated investees, net   --   --   1  (1)  2            Income before income taxes   153  134  121  548  573 Income tax provision   69  45  40  199  190Net income   84  89  81  349  383             Net loss attributable to noncontrolling interests   1  --   1  3  4Net income attributable to NASDAQ OMX   $ 85  $ 89  $ 82  $ 352  $ 387            Basic and diluted earnings per share:            Basic earnings per share   $ 0.52  $ 0.53  $ 0.46  $ 2.09  $ 2.20 Diluted earnings per share   $ 0.50  $ 0.52  $ 0.45  $ 2.04  $ 2.15Cash dividends declared per common share   $ 0.13  $ 0.13  $ --   $ 0.39  $ --             Weighted-average common shares outstanding for earnings per share:            Basic   164.5  166.2  175.4  168.3  176.3 Diluted   169.1  170.5  179.5  172.6  180.0    The NASDAQ OMX Group, Inc.Revenue Detail(in millions)               Three Months Ended Year Ended   December 31,  September 30,  December 31,  December 31,  December 31,    2012  2012  2011  2012  2011   (unaudited)(unaudited)(unaudited)(unaudited)  MARKET SERVICES           Transaction Services           Cash Equity Trading Revenues:            U.S. cash equity trading   $ 283  $ 297  $ 385  $ 1,294  $ 1,617 Cost of revenues:            Transaction rebates   (180)  (193)  (261)  (854)  (1,087) Brokerage, clearance and exchange fees   (74)  (75)  (87)  (318)  (375) Total U.S. cash equity cost of revenues   (254)  (268)  (348)  (1,172)  (1,462) Net U.S. cash equity trading revenues  29  29  37  122  155 European cash equity trading   18  18  22  78  93Total net cash equity trading revenues 47  47  59  200  248            Derivative Trading and Clearing Revenues:            U.S. derivative trading and clearing   124  110  110  458  471 Cost of revenues:            Transaction rebates   (69)  (57)  (63)  (250)  (257) Brokerage, clearance and exchange fees   (10)  (9)  (6)  (34)  (29) Total U.S. derivative trading and clearing cost of revenues   (79)  (66)  (69)  (284)  (286) Net U.S. derivative trading and clearing revenues  45  44  41  174  185 European derivative trading and clearing   30  28  32  116  128Total net derivative trading and clearing revenues 75  72  73  290  313            Access Services Revenues  60  61  56  238  223            Total Transaction Services revenues less transaction rebates, brokerage, clearance and exchange fees  182  180  188  728  784            Market Data Revenues:            Net U.S. tape plans   26  28  29  117  115 U.S. market data products   39  38  37  150  135 European market data products   18  18  21  77  83            Total Market Data revenues 83  84  87  344  333            Broker Services Revenues  5  5  5  19  19            Other Market Services Revenues  --  --  1  13  2 Total Market Services revenues less transaction rebates, brokerage, clearance and exchange fees  270  269  281  1,104  1,138       ISSUER SERVICES           Global Listing Services Revenues:            Annual renewal   28  28  30  112  117 Listing of additional shares   10  10  10  39  40 Initial listing   5  5  5  20  21 Total U.S. listing services   43  43  45  171  178 European listing fees   13  12  13  50  55 Corporate Solutions   31  24  20  97  76Total Global Listing Services revenues  87  79  78  318  309            Global Index Group Revenues   14  14  13  57  52Total Issuer Services revenues 101  93  91  375  361            MARKET TECHNOLOGY       License, support and facility management   27  27  29  110  115 Delivery project   6  7  6  27  24 Change request, advisory and broker surveillance   15  13  13  47  44Total Market Technology revenues  48  47  48  184  183       Total revenues less transaction rebates, brokerage, clearance and exchange fees  $ 419  $ 409  $ 420  $ 1,663  $ 1,682    The NASDAQ OMX Group, Inc.Consolidated Balance Sheets (in millions)        December 31,December 31,  20122011Assets(unaudited)   Current assets:     Cash and cash equivalents  $ 497  $ 506 Restricted cash  85  34 Financial investments, at fair value  223  279 Receivables, net  333  308 Deferred tax assets  33  16 Default funds and margin deposits  209  17 Open clearing contracts:     Derivative positions, at fair value  --   1,566 Resale agreements, at contract value  --   3,745 Other current assets  112  110 Total current assets  1,492  6,581 Non-current restricted cash  25  97 Property and equipment, net  211  193 Non-current deferred tax assets  294  392 Goodwill 5,335 5,061 Intangible assets, net  1,650  1,648 Other non-current assets  125  119 Total assets  $ 9,132  $ 14,091      Liabilities      Current liabilities:     Accounts payable and accrued expenses  $ 172  $ 164 Section 31 fees payable to SEC  97  106 Accrued personnel costs  111  132 Deferred revenue  139  124 Other current liabilities  119  112 Deferred tax liabilities  35  27 Default funds and margin deposits  209  17 Open clearing contracts:      Derivative positions, at fair value  --   1,566  Repurchase agreements, at contract value  --   3,745 Current portion of debt obligations  45  45 Total current liabilities  927  6,038 Debt obligations  1,931  2,072 Non-current deferred tax liabilities  713  670 Non-current deferred revenue  156  154 Other non-current liabilities  196  171 Total liabilities  3,923  9,105      Commitments and contingencies     Equity     NASDAQ OMX stockholders' equity:      Common stock  2  2  Additional paid-in capital  3,771  3,793  Common stock in treasury, at cost  (1,058)  (860)  Accumulated other comprehensive loss  (185)  (350)  Retained earnings  2,678  2,391 Total NASDAQ OMX stockholders' equity  5,208  4,976 Noncontrolling interests  1  10 Total equity  5,209  4,986 Total liabilities and equity  $ 9,132  $ 14,091    The NASDAQ OMX Group, Inc.Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net Exchange Revenues(3) and Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net Exchange Revenues(3) and Operating Expenses(in millions, except per share amounts)(unaudited)               Three Months Ended  Year Ended    December 31,  September 30,  December 31,  December 31,  December 31,    2012  2012  2011  2012  2011 GAAP net income attributable to NASDAQ OMX:  $ 85  $ 89  $ 82  $ 352  $ 387             Non-GAAP adjustments:                       Income from open positions relating to the operations of the Exchange  --   --   --   (11)  --  Merger and strategic initiatives  4  (3)  1  4  38 Restructuring charges  8  10  --   44  --  Asset impairment charges  --   --   18  40  18 Loss on divestiture of business  --   14  --   14  --  Special legal expenses  2  4  --   7  --  Extinguishment of debt  --   --   25  --   31 Sublease reserve  3  --   --   3  --  Value added tax refund  (7)  --   --   (7)  --  Other  1  --   --   4  4 Total non-GAAP adjustments  11  25  44  98  91             Adjustment to the income tax provision to reflect non-GAAP adjustments(1)  (5)  (10)  (13)  (32)  (28) Significant tax adjustments, net  17  1  --   14  5 Total non-GAAP adjustments, net of tax  23  16  31  80  68            Non-GAAP net income attributable to NASDAQ OMX:  $ 108  $ 105  $ 113  $ 432  $ 455                        GAAP diluted earnings per share:  $ 0.50  $ 0.52  $ 0.45  $ 2.04  $ 2.15 Total adjustments from non-GAAP net income above  0.14  0.10  0.18  0.46  0.38            Non-GAAP diluted earnings per share:  $ 0.64  $ 0.62  $ 0.63  $ 2.50  $ 2.53                           Three Months Ended  Year Ended    December 31,  September 30,  December 31,  December 31,  December 31,    2012  2012  2011  2012  2011             GAAP operating income:  $ 175  $ 170  $ 161  $ 690  $ 696             Non-GAAP adjustments:                        Income from open positions relating to the operations of the Exchange  --   --   --   (11)  --   Merger and strategic initiatives  4  (3)  1  4  38  Restructuring charges  8  10  --   44  --   Extinguishment of debt  --   --   25  --   31  Special legal expenses  2  4  --   7  --   Sublease reserve  3  --   --   3  --   Value added tax refund  (7)  --   --   (7)  --   Other  1  --   --   4  4  Total non-GAAP adjustments  11  11  26  44  73            Non-GAAP operating income  $ 186  $ 181  $ 187  $ 734  $ 769                                                Total Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange fees   $ 419  $ 409  $ 420  $ 1,652  $ 1,682            Non-GAAP operating margin (2) 44% 44% 45% 44% 46%                         (1) We determine the tax effect of each item based on the tax rules in the respective jurisdiction where the transaction occurred.         (2) Non-GAAP operating margin equals non-GAAP operating income divided by Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange fees.        (3) Represents revenues less transaction rebates, brokerage, clearance and exchange fees.               The NASDAQ OMX Group, Inc.Reconciliation of GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net Exchange Revenues(1) and Operating Expenses to Non-GAAP Net Income, Diluted Earnings Per Share, Operating Income, Net Exchange Revenues(1) and Operating Expenses(in millions)(unaudited)               Three Months Ended  Year Ended   December 31,September 30, December 31, December 31, December 31,   2012 2012 2011 2012 2011             GAAP revenues less transaction rebates, brokerage, clearance and exchange fees:  $ 419  $ 409  $ 420  $ 1,663  $ 1,682             Non-GAAP adjustments:                       Income from open positions relating to the operations of the Exchange  --   --   --   (11)  --  Total non-GAAP adjustments  --   --   --   (11)  --             Non-GAAP revenues less transaction rebates, brokerage, clearance and exchange fees:  $ 419  $ 409  $ 420  $ 1,652  $ 1,682                           Three Months Ended  Year Ended   December 31, September 30, December 31, December 31, December 31,   2012 2012 2011 2012 2011             GAAP operating expenses:  $ 244  $ 239  $ 259  $ 973  $ 986             Non-GAAP adjustments:                       Merger and strategic initiatives  (4)  3  (1)  (4)  (38) Restructuring charges  (8)  (10)  --   (44)  --  Extinguishment of debt  --   --   (25)  --   (31) Special legal expenses  (2)  (4)  --   (7)  --  Sublease reserve  (3)  --   --   (3)  --  Value added tax refund  7  --   --   7  --  Other  (1)  --   --   (4)  (4) Total non-GAAP adjustments  (11)  (11)  (26)  (55)  (73)            Non-GAAP operating expenses  $ 233  $ 228  $ 233  $ 918  $ 913             (1) Represents revenues less transaction rebates, brokerage, clearance and exchange fees.     The NASDAQ OMX Group, Inc.Quarterly Key Drivers Detail(unaudited)          Three Months Ended   December 31,  September 30,  December 31,    2012  2012  2011 Market Services      Cash Equity Trading       NASDAQ securities       Total average daily share volume (in billions) 1.74 1.66 1.85 Matched market share executed on NASDAQ 23.6% 25.2% 27.2% Matched market share executed on NASDAQ OMX BX 2.6% 2.7% 2.5% Matched market share executed on NASDAQ OMX PSX 1.3% 1.2% 1.1% Market share reported to the FINRA/NASDAQ         Trade Reporting Facility 33.2% 31.5% 30.2% Total market share (1) 60.6% 60.6% 61.0%         New York Stock Exchange, or NYSE securities       Total average daily share volume (in billions) 3.39 3.39  4.14 Matched market share executed on NASDAQ 11.5% 12.8% 13.3% Matched market share executed on NASDAQ OMX BX 2.5% 2.5% 2.5% Matched market share executed on NASDAQ OMX PSX 0.7% 0.6% 0.6% Market share reported to the FINRA/NASDAQ         Trade Reporting Facility 30.0% 28.6% 27.5% Total market share (1) 44.7% 44.6% 44.0%         NYSE MKT and regional securities       Total average daily share volume (in billions) 0.97 0.94  1.45 Matched market share executed on NASDAQ 14.1% 16.1% 19.2% Matched market share executed on NASDAQ OMX BX 2.9% 3.0% 1.9% Matched market share executed on NASDAQ OMX PSX 1.6% 1.5% 1.9% Market share reported to the FINRA/NASDAQ         Trade Reporting Facility 30.6% 29.5% 27.2% Total market share (1) 49.3% 50.1% 50.2%         Total U.S.-listed securities       Total average daily share volume (in billions)  6.09  5.99  7.45 Matched share volume (in billions)  71.6  76.6  100.0 Matched market share executed on NASDAQ 15.4% 16.8% 17.9% Matched market share executed on NASDAQ OMX BX 2.6% 2.7% 2.4% Matched market share executed on NASDAQ OMX PSX 1.0% 0.9% 1.0%         NASDAQ OMX Nordic and NASDAQ OMX Baltic Securities       Average daily number of equity trades 273,330 284,764  394,290 Total average daily value of shares traded (in billions)  $ 3.4  $ 3.2  $ 4.2 Total market share 68.2% 68.5% 71.9%        Derivative Trading and Clearing       U.S. Equity Options       Total industry average daily volume (in millions) 14.3 13.8  15.5 NASDAQ OMX PHLX matched market share 21.9% 21.4% 22.7% The NASDAQ Options Market matched market share 6.2% 5.2% 4.5% NASDAQ OMX BX Options matched market share 1.0% 0.7%  --          NASDAQ OMX Nordic and NASDAQ OMX Baltic       Average daily volume:       Options, futures and fixed-income contracts 379,905 371,230  455,341 Finnish option contracts traded on Eurex 107,373 70,211  46,557         NASDAQ OMX Commodities       Clearing Turnover:       Power contracts (TWh)(2)  453  384  494 Carbon contracts (1000 tCO2)(2)  7,503  5,009  29,908        Issuer Services       Initial public offerings       NASDAQ 19 17 15 Exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic 4 1 1         New listings       NASDAQ (3) 46 40 44 Exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic (4) 9 4 12         Number of listed companies       NASDAQ (5)  2,577  2,610  2,680 Exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic (6)  754  754  776        Market Technology       Order intake (in millions)(7)  $ 95  $ 31  $ 36 Total order value (in millions)(8)  $ 546  $ 523  $ 458         (1) Includes transactions executed on NASDAQ's, NASDAQ OMX BX's and NASDAQ OMX PSX's systems plus trades reported through the FINRA/NASDAQ Trade Reporting Facility. (2) Primarily transactions executed on Nord Pool ASA and reported for clearing to NASDAQ OMX Commodities measured by Terawatt hours (TWh) and one thousand metric tons of carbon dioxide (1000 tCO2).  (3) New listings include IPOs, including those completed on a best efforts basis, issuers that switched from other listing venues, closed-end funds and separately listed ETFs. (4) New listings include IPOs and represent companies listed on the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic and companies on the alternative markets of NASDAQ OMX First North. (5) Number of listed companies for NASDAQ at period end, including separately listed ETFs. (6) Represents companies listed on the exchanges that comprise NASDAQ OMX Nordic and NASDAQ OMX Baltic and companies on the alternative markets of NASDAQ OMX First North at period end. (7) Total contract value of orders signed during the period.  (8) Represents total contract value of orders signed that are yet to be recognized as revenue. CONTACT: Media Relations: Joseph Christinat +1.646.441.5121 Joseph.Christinat@NASDAQOMX.Com Investor Relations: John Sweeney +1.212.401.8737 John.Sweeney@NASDAQOMX.Com