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Nasdaq's (NDAQ) Volumes Mixed in Q2, Increase in June

Nasdaq, Inc. NDAQ reported mixed volumes for second-quarter 2020. While U.S. equity options volume increased 45.7% year over year to 612 million contracts, European options and futures volume declined 22.5% year over year to 17.6 million contracts.

Though revenues per contract for U.S. equity options deceased 20% to 12 cents, the same for European options and futures increased 10% to 44 cents.

In Cash Equities, Nasdaq’s U.S. matched equity volume in the second quarter grossed 142.6 billion shares, up 62.7% from the prior-year quarter. European equity volume improved nearly 33.9% year over year to $253 billion.

Under Fixed Income and Commodities, U.S. Fixed income volume in the second quarter declined 57.3% to $1.2 trillion. European fixed income volume decreased 5.3% to 7.1 million contracts.

Notably, there were 3,788 listed companies on Nasdaq in the second quarter of 2020 compared with 3,735 in the year-ago period. Total listings grew 2.2% year over year to 4,198.

Nasdaq aims for long-term growth by banking on organic means. The company is also looking to ramp up growth by reviewing operations. Its increased focus on Market Technology and Information Services businesses bodes well, as these offer great growth opportunities.

Its organic growth has also been boosted by the strategy of accelerating its non-trading revenue base, which includes market technology, listing and information revenues. The company’s organic growth in non-trading segments was 8% in 2019, primarily attributable to its Market Technology, Index, and Investment Data & Analytics businesses. Nasdaq expects growth from its index and analytics businesses, followed by a moderate rise in its exchange data products across the U.S. and Nordic equities, options and fixed income businesses.

Notably, Nasdaq reported impressive volumes for the month of June. While U.S. equity options volume increased 74.2% year over year to 230 million contracts, European options and futures volume rose 4.8% year over year to 6.6 million contracts.

Shares of Nasdaq have gained 16.2% in the past year against the industry’s decline of 2.4%. The Zacks Consensus Estimate for second-quarter 2020 earnings per share is pegged at $1.43, suggesting an improvement of 17.2% from the year-ago reported figure.


Our proven model predicts an earnings beat for the company when it reports second-quarter results on Jul 22. This is because it has the right combination of a Zacks Rank #3 (Hold) and Earnings ESP of +1.30%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

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

Recently, securities exchanges, namely Intercontinental Exchange Incorporation ICE, CME Group Inc. CME and MarketAxess Holdings Ltd. MKTX reported their volumes.

Intercontinental Exchange’s average daily volume (ADV) in June decreased 19.1% to 5.3 million largely attributable to lower Commodities and Financial ADV.

CME Group reported unimpressive ADV for June 2020. Average daily volume of 17.1 million contracts per day was down 26% year over year attributable to lower volumes in five of the six product lines.

MarketAxess Holdings’s total monthly trading volume of $578.5 billion for June 2020, reflected a whopping improvement of 216.4% year over year. It reported ADV of $26.3 billion, surging 187.6% year over year. This upsurge can be attributed to robust volumes across the company’s product lines.

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