NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) signed a memorandum of understanding with China Financial Futures Exchange (CFFEX) during the World Federation of Exchanges annual meeting. NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) Vice Chairman Sandy Frucher said his company will cooperate with CFFEX to develop its markets. NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) is the second largest stock exchange operator in the United States.
Nasdaq and CFFEX take their past collaboration to the next level
The companies said in a statement that they will collaborate on technology, information sharing, staff training, and consultation. The pair also plans to develop markets in China. China Financial Futures Exchange was founded in 2006 by Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange. It is authorized by China Securities Regulatory Commission and the State Council.
China Financial Futures Exchange is the only financial futures exchange in Asia’s largest economy. Its main functions are trading, arranging and organizing the listing, formulating exchange rules, settlement and clearance of financial derivatives, providing technology and releasing market trading information. Over the past few years, it has been trying to go global. CFFEX has been strengthening ties with international exchanges and learning from their experience. It has already collaborated with NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) in the past in many areas. But this time they will cooperate on other areas that benefit both exchanges.
Nasdaq continues to diversify its business
NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) reported a 27% increase in Q3 profits. The exchange operator said it was helped by solid sales of technology and information services, reports Nandini Sukumar of Bloomberg. U.S. stock exchanges are facing a decline in stock trading. To offset that, NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) is rapidly diversifying its business. It has acquired the shareholder relations division of Thomson Reuters Corporation (NYSE:TRI) (TSE:TRI), and the eSpeed platform that will help it strengthen its presence in U.S. Treasury bonds dealing. The exchange operator has also purchased a 25% stake in the Dutch alternative trading system The Order Machine.
NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) shares rose 0.59% to $35.93 at 11:45 AM EDT.
