The Gateway to Algorithmic and Automated Trading

Nasdaq Index Calculation System launches

First Published 29th June 2015

Offering gives exchanges index producer capabilities, opportunities for new revenue streams. Singapore Exchange to leverage technology to boost index services offering.

Lars Ottersgard, Nasdaq

Lars Ottersgard, Nasdaq

"Exchanges utilizing this product can offer new value added services while creating new sources of intellectual property and revenue lines."

New York - Nasdaq has announced the launch of the Nasdaq Index Calculation System, a standalone solution that provides marketplaces with a flexible index calculation platform to compute multi-asset, multi-currency indexes.

The system enables exchanges to operate and administer index calculations in-house, which enabling them to define and create unique products while maintaining operational control and controlling IP ownership over the marketplaces' indexes. In addition, Singapore Exchange (SGX) will utilize the technology to enhance their index services offering.

"By generating their own indexes and working with partners to create investible products based on their indexes, marketplaces can better differentiate their brands and generate new sources of revenue for the exchange," said Lars Ottersgard, executive vice president, Market Technology, Nasdaq. "As an owner and operator of several of the world's most renowned indices, including the Nasdaq Composite and the Nasdaq 100, we see this new technology giving other exchanges an opportunity to not only increase the profile of their respective market segments, but also add to the value of their existing market data business. Exchanges utilizing this product can offer new value added services while creating new sources of intellectual property and revenue lines."

Features include:

  • Multi-asset, multi-currency coverage;
  • Powerful index administration with management of calculation creation, supervision and maintenance;
  • Multiple input and output interface handling capabilities;
  • Historical database for historical reporting, restatements and back-testing;
  • Suite of index reports including predictive reporting to calculate adjusted index values prior to actual re-calculation;
  • High availability, resiliency and operational security.

For marketplaces that are seeking a complete index solution, but do not want full operational control of an index engine in-house, Nasdaq also offers a full index service, which includes in-bound data capture, index design and market data dissemination.

"We purposely made this new index calculator highly customizable and able to handle any type of index or asset type," said Torbjörn Nager, lead product manager, Market Technology, Nasdaq. "The solution's modular design supports efficient implementation of feed handlers, customer index types, calculation algorithms and reports, decreasing time-to-market for new index products."