The CEO of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) has been given a public boost to their confidence today. The Wall Street Journal reported earlier today that the company’s board still strongly supports CEO Robert Greifeld, even after technology problems brought trading to a halt in recent weeks.
The WSJ report, which was authored by Jacob Bunge, source people familiar with the thinking of the company’s board. According to the piece, the board retains “full confidence” in the management and creation of new business at NASDAQ OMX Group, Inc. (NASDAQ:NDAQ). The exchange company has been aggressively pursuing new acquisitions in order to diversify the company’s base.
Trading problems at NASDAQ OMX
NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) has had huge technology problems in recent years, with the most recent problem resulting in a halt to trade on the exchange. The fault was traced to an important information feed. The fault meant that the company was unable to deliver real time stock prices. That meant the company had to shut down the exchange until it could resume delivering information.
The Nasdaq closure was not a huge problem by itself, but the firm has had other issues which have made its systems seem less than reliable. Back in May of 2012, the Nasdaq handled the initial public offering of Facebook Inc (NASDAQ:FB) so poorly that it was forced to pay a settlement to traders after a lawsuit was filed.
If companies and traders lose faith in the ability of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) to take orders and deliver proper pricing, there is less of a chance that companies will want to list on the exchange. That means its fees will have to come down if it wants to keep clients at its business.
Diversification at NASDAQ OMX
Robert Greifeld has spent his recent time at NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) diversifying the company away from its stock exchange business. Since he took charge of the company in 2003, Nasdaq has acquired the Boston Stock Exchange, parts of Thompson Reuters, and the Philadelphia stock exchange.
Financial markets are always changing, and NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) is trying to future-proof itself. With this note of confidence for the current CEO, the company can move forward with its diversification plan.