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Nasdaq’s (NDAQ) 4Q16 Volumes Reflect Mixed Performance


Nasdaq, Inc. NDAQ reported trading volumes for the month of December and fourth-quarter 2016 (ending Dec 30, 2016), which are segregated under equity derivatives, cash equities, and fixed income and commodities. Notably, the company has provided estimated revenue capture for the quarter.

This major exchange operator’s U.S. equity options volume surged nearly 49%, year over year, to 356 million contracts during fourth-quarter 2016. Projected revenue capture per contract (RPC) for the quarter stands at 16 cents, flat year over year. The company’s European options and futures volume was 21.2 million contracts, down 13.5% year over year. Estimated RPC reflects a 9.5% year-over-year increase to 46 cents.

Under its cash equities, Nasdaq’s U.S. matched shares totaled 76.4 billion shares in the quarter, declining 7% from the prior-year period. Estimated revenue capture per 1,000 shares reflects a decline of 7.5% on a year-over-year basis to 49 cents. While value of shares under European equity dipped 5.2% from the prior-year quarter to $201billion, projected revenue capture per 1,000 shares indicate a 10% year-over-year rise to 11 cents.

The U.S. Fixed income volume for the quarter increased 3% year over year to $5,465 billion. Also, European fixed-income volume of 5.6 million contracts climbed 15.2% from the prior-year quarter, with the estimated RPC reflecting a 15.7% increase to 59 cents. In addition, European energy clearing and trading volumes improved year over year in the quarter.

The quarterly report certainly reflects a mixed performance. Over the past one year, Nasdaq’s shares increased 17.6%, underperforming the 22.5% gain for the Zacks categorized Securities Exchanges industry.

Currently, Nasdaq carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of other Securities Exchanges

CME Group Inc. ‘s CME average daily volume (ADV) for fourth-quarter 2016 surged 24% year over year to 16.3 million contracts, with growth across five of the six product lines. Notably, full-year 2016 options volume averaged 3.1 million contracts per day, up 14%, with electronic options averaging a record 1.7 million contracts per day, up 21% year over year.

CBOE Holdings, Inc. CBOE reported trading volume for Dec 2016 as well as for full-year 2016. For December, the company witnessed trading volume of 96.1 million, up 7% from the year-ago month, but down 18% from the prior month. In 2016, the recorded trading volume was 1,184.6 million, up 1% year over year.

MarketAxess Holdings Inc.’s MKTX total volume of $101.3 billion for the month of Dec 2016 was up 22% year over year, but down 18.2% from the month of Nov 2016.

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