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Nasdaq (NDAQ) & FIA Tech to Enhance Post Trade Infrastructure

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Nasdaq (NDAQ - Free Report) recently announced that its strategic clearing platform will be adopted by FIA Tech. This partnership is aimed at dealing with and reducing the complex nature of post-trade data processing in the exchange-traded derivative market. FIA Tech’s Trade Data Network and NDAQ’s Real-Time Clearing integration are expected to lower friction and enhance the quality and volume of post-trade data.

This move bodes well for Nasdaq as it expands its presence in the exchange-traded derivatives market. This will enable NDAQ to enter new markets and attract new clients. The integration of FIA Tech and NDAQ’s platforms will streamline data processing, leading to improved processing time, lesser complexity and reconciliation issues.

Moreover, NDAQ’s existing clients will gain access to clearing activity data through FIA Tech’s network, thereby enhancing its offerings. Improved data quality will lead to greater reliability in post-trade reporting and analysis, fueling informed decisions by clients and helping NDAQ with better retention.

This is a time opportune move as demand for post-trade processing solutions is on the rise. A highly fragmented global post-trade network causes multiple points of reconciliation, leading to inefficiency. NDAQ is expected to address systemic inefficiency in the global post-trade network with this partnership. A resilient operating model will benefit market participants by enabling efficient use of capital. Hence, this partnership is a win-win situation for all the parties involved.

NDAQ might experience higher usage of its platform, leading to revenue growth through higher volumes or enhanced service offerings. Moreover, this will also aid NDAQ in building a moat and reinforce its position in the market as a financial technology solutions provider.

Zacks Rank & Price Performance

Nasdaq currently carries a Zacks Rank #3 (Hold). In the past three months, the stock has gained 6.5% compared with the industry’s rise of 2%.

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Stocks to Consider

Some better-ranked stocks in the broader Finance space are Coinbase Global, Inc. (COIN - Free Report) , Euronet Worldwide, Inc. (EEFT - Free Report) and Brown & Brown, Inc. (BRO - Free Report) . While Coinbase Global sports a Zacks Rank #1 (Strong Buy) at present, Euronet and Brown & Brown carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Coinbase’s current-year earnings implies a 1,840.5% year-over-year surge. It has witnessed five upward estimate revisions against none in the opposite direction in the past month. COIN beat earnings estimates in each of the past four quarters, with an average surprise of 364.6%.

The Zacks Consensus Estimate for Euronet Worldwide’s 2024 earnings is pegged at $8.64 per share, which increased 17 cents in the past month. It beat earnings estimates in each of the past four quarters, with an average surprise of 9.3%. The consensus mark for EEFT’s revenues in 2024 is pegged at $4 billion.

The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $3.61 per share, which indicates 28.5% year-over-year growth. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 11.9%. Also, the consensus mark for BRO’s 2024 revenues suggests 9.1% year-over-year growth.


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