Nasdaq sees tech partnership with HKEx in derivatives link-up
By Staff Reporter | Mar 18, 2015 07:52 AM EDT
Securities exchange operator NASDAQ OMX Group Inc (NDAQ.O) is a "natural partner" for its Hong Kong counterpart should the latter need technological assistance for derivatives link-ups with other exchanges, Nasdaq President Adena Friedman said.
Hong Kong Exchanges and Clearing Ltd (HKEx) (0388.HK) plans to add derivatives to a scheme which currently allows investors in Hong Kong to buy shares listed in mainlandChina and vice versa. HKEx is banking on the scheme to boost trading volume. [ID:nL4N0W74TK] [ID:nL4N0W7275]
Nasdaq provides software for trading and clearing derivatives, as well as surveillance tools that help market participants ensure they comply with regulations.
"We already are the technology provider to Hong Kong for the derivatives market. Were they to do derivatives connection, we will be a natural partner to them to make sure that they can build that connection," Friedman told Reuters in an interview in Jakarta on Wednesday.
Friedman said Nasdaq has been seeing double-digit annual revenue growth in its risk management products, driven by demand from big banks, brokers, exchanges and regulators.
Friedman, the former chief financial officer of global asset management firm Carlyle GroupLP (CG.O), also said Nasdaq plans to make "opportunistic" acquisitions in the index business.
Friedman said she expects "several dozen" listings in the United States by mostly Asian companies over the next two to three years, likely from technology and healthcare sectors inChina, India and Southeast Asia.
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