Transcript Document

© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
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© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
NASDAQ: What we have achieved and where we are heading
 NASDAQ 1sts
•
The Global Select Market with the highest listing standards in the world
•
Select Market Makers
•
Highest achievement in dual, spin-off and switch listings for any exchange
•
Achieved 20.7% market share for the top 10 most actively traded NYSE companies
•
Independent Research Network (IRN) - Coverage and visibility for issuers
 Technology Advancements
•
NASDAQ IPO/Halt process
•
Open, Closing & Intraday Crosses
•
Most advanced Online trading system (Openview) for traders and our issuers
 Corporate Acquisitions
•
25% of the London Stock Exchange
•
Risk Management - Carpenter Moore
•
Investor Relations - Shareholder.com & PrimeZone Wire Services
 Alliance partners
•
Corporate Governance – Equilar, BOD compensation
•
MetricStream – SOX automated systems
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
2
NASDAQ is the World’s Most Recognized Market
NASDAQ is home to…
Category-defining companies drawn from
all sectors of the economy
Industrials
10%
• 50% of Fortune’s 100 Fastest
Growing Companies
• 80% of Forbes “Top Brands”
companies
Energy
& Utilities
3%
Consumer
16%
Financials
23%
Telecomm
Services
2%
Materials
2%
Health Care
19%
Forbes data source: www.forbes.com. As of June 2006.
Number of domestic companies listed on NASDAQ National Market. Consumer represents consumer discretionary and staples.
Data source: FactSet Research Systems, Inc. Data as of May 2006.
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Information
Technology
25%
NASDAQ is Home for IPOs
Since 1999, over 81% of all companies
that have done an IPO in the leading
U.S. exchanges have chosen NASDAQ.
All NASDAQ and NYSE IPOs
486
NASDAQ
NYSE
397
All International NASDAQ and NYSE IPOs
170
139
47
1999
48
2000
63
34
2001
51
35
2002
79
56
78
71
26
41
23
2003
55
86
11
2004
2005
YTD August
25, 2006
1999
Includes common stocks, ADRs, and GDRS. Close end funds, REITS, and trusts are excluded.
Source: EquiDesk, FactSet Research Systems, Inc., Bloomberg, and NASDAQ Economic Research.
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8
2000
11
2001
1
10
2002
23
3
5
2003
12
2004
22
9
2005
11
8
YTD August
25, 2006
NASDAQ Three Tier Market System
On February 15th, 2006, NASDAQ announced plans to create a new market tier for
public companies that will have the highest initial listing standards in the world.
NASDAQ Global Select Market
NASDAQ Global Market
NASDAQ Capital Market
• The NASDAQ Global Select
Market is being created for
companies that meet the most
stringent initial financial listing
standards ever set by a stock
market.
• The NASDAQ Global Market,
formerly the NASDAQ National
Market® has a new name that
more accurately reflects the
global leadership and
international reach of our market
and our listed companies.
• The NASDAQ Capital Market®,
formerly The NASDAQ SmallCap
Market, was renamed in 2005
to reflect the core purpose of this
market which is capital raising.
NASDAQ Global Select Expected Industry Distribution
NASDAQ Global Select Expected Market Cap Distribution
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
5
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
Companies Choose NASDAQ
NYSE listed companies are transferring to and listing their spin-offs on NASDAQ.
NYSE Companies are listing their
spin-offs on NASDAQ
NYSE Companies are switching
to NASDAQ
NYSE Parent
Company
“After a dual listing trial of nearly two years, we are convinced
of NASDAQ’s commitment to a highly competitive, well
regulated marketplace that is optimal for trading our stock.”
- Charles R. Schwab, Chairman and CEO, Charles Schwab
"As we look to our future as a publicly traded company, we
concluded that NASDAQ, with its cadre of dynamic companies,
state-of the-art electronic trading platform and focus on firstrate customer service, was a natural fit for us.“
-Glenn Tilton, Chairman, President & CEO, UAL
"We believe that our association with NASDAQ will afford us
an opportunity to reinforce our position as a technology and
market leader.“
-Mike Fister, President and CEO, Cadence Design Systems
“Listing on NASDAQ was the right choice for the new
company. We look forward to a new and growing relationship
with NASDAQ.”
- Sears spokesman Chris Brathwaite
Liberty Media switched to NASDAQ in 2006.
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NASDAQ SpinOff Company
NASDAQ’s largest non-U.S. companies
328 foreign companies are listed on NASDAQ
Sweden
($46.8bn)
Sweden
($18.7bn)
Canada
($11.5bn)
Ireland
($7.8bn)
Israel
($28.2bn)
India
($18.1bn)
Japan
($10.6bn)
U.K
($6.4bn)
Japan
($27.2bn)
Japan
($21.5bn)
Netherlands
($14.2bn)
U.K.
($14.2bn)
Bermuda
($13.7bn)
Cayman Islands
($9.1bn)
U.K.
($8.7bn)
France
($5.5bn)
South Africa
($5.1bn)
Netherlands
($9.3bn)
Singapore
($5.8bn)
Source: Bloomberg Financial Markets. Data as of June 14th 2006.
The list excludes companies grandfathered on NASDAQ: Anglo American, CSK Corporation, Dai'ei Inc, Fuji Photo Film, Highveld Steel and Vanadium,
Kirin Brewery Company, Nissan Motor, Rexam, Santos, Sanyo Electric, and Velcro Industries.
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Norway
($19.6bn)
Performance
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Current Dealer Market vs. Auction Market
Electronic Market Structure
Technology
•
35 years of experience
•
0 years of experience
•
Well-defined
•
Undefined hybrid model
•
INET complements current
structure
•
ARCA/Euronext integration challenges
•
Pressure from specialists to maintain
floor
•
Robust, proven technology •
Legacy infrastructure
•
Significant ongoing technology
issues
•
INET easy to integrate
•
SIAC (2/3 NYSE, 1/3 AMEX)
•
Proven integrator – Brut
•
Untested acquiror
Regulatory Structure
•
Independent regulator
•
Owned regulator
Corporate Culture
•
For profit orientation
•
•
Focus on costs
Transitioning from memberowned organization
•
Transitioning from utility
Integration
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
10
Dealer Market is the Market of the Future
Most stock exchanges have eliminated trading floors.
The remaining floor-based exchanges are building electronic networks to trade.
Exchange
Date
Current Use
London
1986
Space occupied by
Knight Securities
Copenhagen
1987
Electronics/Record Shop
Paris
1991
Securities museum
Stockholm
1991
Nobel Prize museum
Milan
1996
Conference space
Switzerland
1996
Office space
Toronto
1997
Office space
Tokyo
1998
Visitor/Media center
Vienna
1998
Currently unused
Dublin
2000
Currently unused
Athens
2001
Conference space
Only three auctions markets are currently standing:
New York Stock Exchange
American Stock Exchange
Nobelmuseet (The Nobel Museum) in the former Stockholm Stock
Exchange, built in 1778.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
Argentina Stock Exchange
10
Superior Performing Market Based on SEC Definition
NASDAQ outperforms auction based exchanges on independent SEC mandated Order Execution Rule
(605) measures, which compares execution quality among market centers using uniform statistics.
54
Average Execution Speed (Seconds)
28
7
4
$100 to
$250
NASDAQ
NYSE
21
13
4
$250 to
$500
2
2
$500 to
$1,000
$1,000 to
$5,000
Execution speed effects efficiency

Faster execution speed maximizes the
likelihood of completing the transaction at
an investor’s price point.
10
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
3.7
2.4
Average Effective Spread (Cents)
3.2
2.2
$100 to
$250
2.2
$250 to
$500
2.7
$500 to
$1,000
2.6
1.6
$1,000 to
$5,000
2.1
Spread directly impacts investor cost

1.1
Tighter spreads lead to lower costs which
make available more investor capital for
investment allocation.
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
95%
Percent of Executions At or Within the Spread
96%
96%
95%
92%
87%
87%
86%
85%
82%
$100 to
$250
$250 to
$500
$500 to
$1,000
$1,000 to
$5,000
Trades relative to the spread indicates quality of
execution

Higher execution quality provides investors
with greater certainty of execution at the
desired price.
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
See appendix for footnotes. NASDAQ data represents NASDAQ Execution Centers
Source: Market Systems, Inc., April 2006
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
11
NASDAQ Provides Greater Market Depth
NASDAQ’s competitive market structure produces greater liquidity and offers a broad reaching
platform for issuers to convey their message.
NASDAQ
NYSE
Liquidity Providers*
23
1
1
1
$100 to
$250
$250 to
$500
$500 to
$1,000
1
Market participants commit capital and provide
continuous liquidity

41
31
28
55
Multiple market makers provide greater
liquidity, competition, and transparency for
your investors.
1
$1,000 to
$5,000
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
Amivest Liquidity (000's)
$117,736
$97,193
Greater liquidity enhances trading

$994$1,025
$100 to
$250
$6,738
$3,124
$5,345
$2,569
$250 to
$500
$500 to
$1,000
$17,795
$22,803
$1,000 to
$5,000
More stock can be bought or sold on
NASDAQ without impacting the price.
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
Analyst Coverage
11
3
2
$100 to
$250
5
4
$250 to
$500
7
5
$500 to
$1,000
18
15
Analysts provide multiple channels to
disseminate your story to investors

8
More analyst sponsorship helps raise
investor awareness and lowers volatility.
$1,000 to
$5,000
$5,000 to
$50,000
D o llar V alue o f F lo at ( M illio ns)
See appendix for footnotes.
Source: FactSet Research Systems, Inc., June 2006.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
12
NASDAQ Companies Have Higher Valuations - Across All
Size Ranges and All Sectors
NASDAQ
NYSE
27.8
26.9
Average PE Ratio
33.5
31.9
27.8
27.6
25.8
33.5
32.9
31.2
29.8
30.0
24.4
18.6
< $100 MIL
$100 - $250 MIL
$250 - $500 MIL
$ 5 0 0 M I L - $ 1 BI L
$ 1 - $ 5 BI L
$ 5 - $ 5 0 BI L
> $ 5 0 BI L
D ollar V alue of Float ($ mm)
Average PE Ratio
41.2
40.2
35.9
34.3
31.7
30.5
24.6
Consumer Discretionary
23.9
21.4
Consumer Staples
Energy
28.9
27.7
26.1
26.4
21.4
Financials
34.4 33.4
33.8
Health Care
Industrials
Information Technology
24.7
M aterials
Sector: GICS Sector.
Sample size: 2,952 Companies – NASDAQ: 1,556, NYSE: 1,396.
Includes all domestic common stocks on Nasdaq National Market and the NYSE with current P/E > 0. Top and bottom 2% have been removed as outliers.
Data Source: FactSet Research Systems, Inc. As of March 2006.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
13
36.0
21.1
Telecommunication
Services
Utilities
NASDAQ Stocks Have Higher Valuations
NASDAQ Companies sustain higher P/Es, on-average, than NYSE companies with like-kind 2-year
forecasted growth rates.
AVERAGE P/E
120
Current P/E (March 2006)
100
80
60
CAGR
1-5%
6-10%
11-15%
16-20%
21-25%
26-30%
31-35%
36-40%
41-45%
46-50%
51-60%
61-70%
71-80%
81-90%
91-100%
NASDAQ
19.3
21.1
24.0
31.3
32.0
39.4
41.8
41.9
41.2
57.5
50.2
50.8
61.8
69.5
97.8
Number of Companies
NYSE
17.6
20.0
22.8
27.3
27.3
33.4
43.2
42.5
46.8
41.5
54.2
47.0
76.2
56.6
50.0
NASDAQ
99
209
221
173
102
54
44
36
31
14
26
17
8
13
6
NYSE
149
274
235
155
83
43
28
25
19
18
16
13
8
6
4
NASDAQ
NYSE
40
20
81-90%
71-80%
61-70%
51-60%
91-100%
2 Year Projected Compound Annual Growth Rate
46-50%
41-45%
36-40%
31-35%
26-30%
21-25%
16-20%
11-15%
6-10%
1-5%
0
CAGR is the 2 year projected compound annual growth rate. It is the year over year growth rate applied to an company's EPS. It measures two year's average EPS from the prior fiscal period (FY0)
to the upcoming fiscal period (FY2).
Sample size: 2,129 Companies – NASDAQ: 1,053, NYSE: 1,076. Companies with negative or >100% CAGR have been excluded for this analysis. (NASDAQ: 106 companies, NYSE: 141 companies)
Includes all domestic common stocks on Nasdaq National Market and the NYSE with current P/E > 0. Top and bottom 2% have been removed as outliers.
Data Source: FactSet Research Systems, Inc. As of March 2006.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
14
Institutional Investors are Moving Their Trades Away from
the Floor Towards Electronic Markets
The percentage of trades occurring on the NYSE is continually decreasing as institutional investors
take advantage of NASDAQ’s superior platform to receive more efficient, higher quality executions
with lower spreads.
Average NYSE Historical Trading Volume
8 1.7 %
7 9 .9 %
7 9 .8 % 7 9 .3 % 7 9 .5 %
7 8 .1% 7 7 .7 %
7 9 .0 % 7 8 .5 %
7 8 .9 %
7 7 .8 %
7 6 .1% 7 6 .7 % 7 5 .7 %
7 5 .4 % 7 4 .8 %
7 3 .8 %
7 2 .0 %
7 0 .0 %
J un04
J ul04
A ug04
S e p04
Oct04
N o v04
D ec04
J a n05
F e b05
M a r05
A pr05
M a y05
J un05
J ul05
A ug05
S e p05
Oct05
N o v05
D ec05
7 0 .9 % 7 1.7 %
6 9 .5 %
J a n06
F e b06
M a r06
6 8 .6 %
A pr06
6 9 .5 %
M a y06
6 8 .2 %
J un06
“The recent slide reflects huge changes in the business of trading
stocks. Electronic competitors to the NYSE have gained ground as big
investors such as hedge funds have increasingly used computerized
strategies that rely on quick execution of buy and sell orders,
especially in heavily traded stocks or when news affects a company's
stock price. In those situations, the NYSE's human traders sometimes
can't keep up”.
Wall Street Journal; November 29, 2005
"Trading on the floor today...is so different," says Jamie Selway, head
of White Cap Trading, a New York brokerage firm. Just a few years
ago, he says, "inertia" kept trades flowing to the NYSE floor, but those
orders are now "portable" and can go anywhere.
Wall Street Journal; November 29, 2005
© Copyright 2005, Wall Street Journal. All rights reserved.
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15
Institutional Investors are Wary of NYSE Hybrid Model
For 35 years NASDAQ has brought leadership and innovation to the markets, today our electronic
market model is emulated around the world.
“Why were specialists the big winners here?” asked George Rutherfurnd,
a Chicago based consultant to two trading organizations. “It appears
that the NYSE somehow convinced the SEC staff that the NYSE specialist
system would not be economically viable… unless specialists were given
unimaginable competitive advantages to the detriment of the public
orders”… “It’s a classic deal with the devil”… “totally contradicts the
original intent of the hybrid model”… “now basically foolish for us to post
at the NYSE”.
The Hybrid Market allows the Specialist to Remain in a
Privileged Position
•
Power to view incoming orders before the public
•
Only person to have access to reserve,
discretionary and hidden orders
•
Trading in their proprietary account without
interacting with public orders
Trader’s Magazine - June 2006 issue
“The NYSE hybrid plan is an attempt to meet the demands of regulators
and customers, but simultaneously provide for the needs of specialist
member firms. Critics charge the NYSE decided, in the fifth
amendment, to restore advantages of the specialists, who
supposedly had complained after the first four amendments.”
Trader’s Magazine 2006
“..90 percent of our orders are placed electronically and, if we can't
be treated fairly, then we will go to a place where electronic orders are
treated fairly.”
Michael Buek- Head Trader Vanguard
Institutional Investors still have many concerns about the
Hybrid Proposal
•
Specialist is still in a privileged position against
public interest
•
Confusion as to how investors will interact with the
auction model, the hybrid and Arca
•
Best execution requirements
•
Unproven technology
“The hybrid market is a securities market disaster waiting to
happen. Even putting aside issues of unfairness to the trading public
(which IBAC is not prepared to do in regard to the ultimate shape of the
hybrid market), we ask the Commission staff to envision the scenario in
this country's securities markets if the technology fails in a fully
implemented NYSE hybrid market environment. Much of the
technology (specialists' algorithms, certain order types, broker
technology) has not yet even been offered, let alone tested. That
which has been tested has repeatedly failed.” .
Comment letter to SEC from Independent Broker Action CommitteeMarch 2006
“…the proposal falls short of providing an effective trading system that
will encourage investors to place orders on the Exchange”
Ari Burstein, ICI (Buyside Advisory)
NASDAQ’s Market Model is What The NYSE is Trying to Create
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16
Price
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17
Listing and Annual Fees
NASDAQ has lower listing fees for all levels of shares outstanding
$500,000
$450,000
NYSE Initial Fees
NYSE Annual Fees
NASDAQ Initial Fees
NASDAQ Annual Fees
$400,000
$350,000
NASDAQ ADR Annual Fees
Fees
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
1
5
10
15
20
25
30
50
75
100
150
Max
ORIGINAL LISTING FEES[1]
CONTINUING ANNUAL FEES [2]
ADR ANNUAL FEES [3]
SHARES
(MILLIONS)
NASDAQ
Global
Market
NASDAQ
Global
Market
NYSE [3]
NASDAQ
Global
Market
Up to 1
1+ to 2
2+ to 3
3+ to 4
4+ to 5
5+ to 6
6+ to 7
7+ to 8
8+ to 9
9+ to 10
10+ to 11
11+ to 12
12+ to 13
13+ to 14
14+ to 15
15+ to 16
16+ to 20
20+ to 25
25+ to 30
30+ to 50
50+ to 75
75+ to 100
100+ to 150
over 150 million
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$125,000
$150,000
$150,000
$150,000
$150,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$30,000
$35,000
$35,000
$35,000
$35,000
$35,000
$35,000
$35,000
$35,000
$37,500
$37,500
$45,500
$65,500
$85,000
$95,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
$38,000
38,000+ to 46,500
38,000+ to 46,500
46,500+ to 69,750
69,750+ to 93,000
93,000+ to 139,500
139,500+ to 500,000**
$21,225
$21,225
$21,225
$21,225
$21,225
$21,225
$21,225
$21,225
$21,225
$21,225
$26,500
$26,500
$26,500
$26,500
$26,500
$26,500
$26,500
$26,500
$29,820
$29,820
$29,820
$30,000
$30,000
$30,000
NYSE
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
$150,000
150,000+ to 154,600
154,600+ to 172,100
172,100+ to 242,100
242,100+ to 250,000
250,000*
250,000*
250,000*
[1] The original listing fee for NYSE is based on the total number of shares listed, including all shares issued and outstanding, as well as shares
reserved by the Board of Directors for a specific future issuance. The original fee for NASDAQ Global Market is based on total shares outstanding.
Fees include one-time initial listing charges of $5,000 for NASDAQ Global Market,
$36,800 for NYSE, applied for the first class of securities listed by an issuer.
[2] Newly listed companies are billed the annual fee on a pro-rata basis at the end of the calendar year in which they are listed.
[3] NYSE annual fees payable are the greater of amounts shown under a minimum fee schedule or a fee applied on a per share basis.
* The initial fee component of the original listing fee for common shares is capped at $250,000, including the $36,800 special charge.
** Maximum $500,000 annual listing fee applies to all securities listed by an issuer, other than derivative products, fixed income products,
and closed end-funds.
[4] NASDAQ ADR annual fees are capped at $30,000. NYSE ADR fees are the same as the schedule for ordinary shares.
Source: Domestic listing fees for NASDAQ and NYSE; based on fees as of October 2006.
Shares Oustanding (Millions)
Source: Fee schedule as of October 2006. NASDAQ Annual fees represent proposed fees filed with SEC 2/10/06 and are pending approval.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
18
Comparative Listing Fees
NASDAQ annual fees are lower than both NYSE and proposed NYSE Arca fees across all TSO
Ranges.
Original Listing Fees
TSO Range (mil)
0 to 5
5 to 10
10 to 15
15 to 30
30 to 50
Over 50
NYSE Arca Proposed Fees
$100,000
$100,000
$100,000
$100,000
$125,000
$150,000
NASDAQ NCM Fees
$25,000
$35,000
$45,000
$50,000
$50,000
$50,000
Difference
$75,000
$65,000
$55,000
$50,000
$75,000
$100,000
NYSE Fees
$150,000
$150,000
$150,000
$150,000 to $181,500
$181,500 to $250,000
$250,000
NASDAQ NNM Fees
$100,000
$100,000
$100,000
$100,000
$125,000
$150,000
Difference
$50,000
$50,000
$50,000
$50,000 to $81,500
$50,000 to $81,500
$50,000 to $81,500
Annual Listing Fees
TSO Range (mil)
0 to 10
10 to 25
25 to 50
50 to 75
75 to 100
100 to 150
150 to 200
200 to 250
250 to 300
Over 300
NYSE Arca Proposed Fees
$30,000
$30,000 to $35,625
$35,625 to $45,000
$45,000 to $54,375
$54,375 to $63,750
$85,000
$85,000
$85,000
$85,000
$85,000
NASDAQ NCM Fees
Difference
$27,500
$2,500
$27,500
$2,500 to $8,125
$27,500
$8,125 to $17,500
$27,500 $17,500 to $26,875
$27,500 $26,875 to $36,250
$27,500
$57,500
$27,500
$57,500
$27,500
$57,500
$27,500
$57,500
$27,500
$57,500
Fee Schedules as of March, 2006. Proposed NYSE Arca fees from SEC filing on 3/1/2006.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
19
NYSE Fees
$38,000
$38,000
$38,000 to $46,500
$47,430 to $69,750
$70,680 to $93,000
$93,000 to $139,500
$139,500 to $186,000
$186,000 to $232,500
$232,500 to $279,000
$279,000 to $500,000
NASDAQ NNM Fees
Difference
$30,000
$8,000
$35,000
$3,000
$37,500
$500 to $9,000
$45,000
$2,430 to $24,750
$65,500
$5,180 to $27,500
$85,000
$8,000 to $54,500
$95,000
$44,500 to $91,000
$95,000
$91,000 to $137,500
$95,000 $137,500 to $184,000
$95,000 $184,000 to $405,000
Brand
© Copyright
TheStock
Nasdaq
StockInc.
Market,
Inc.reserved.
All rights reserved.
© Copyright
2005, The2006,
Nasdaq
Market,
All rights
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National Visibility in Times Square NYC
The MarketSite provides unbeatable visibility to reach potential investors and customers
The NASDAQ MarketSite
Tower
MarketSite Network
Coverage
NASDAQ MarketSite
Events
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
NASDAQ companies can
advertise on the largest electronic
screen in the US seen by millions
of tourists and New Yorkers in
Times Square
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
Visibility through: Market Open and
Close Ceremonies, press conferences
and interviews, listing anniversaries,
product announcements, and other
special events
21
Bloomberg (USA, Brazil, Spain,
Italy)
BusinessWeek
BusinessWeek Weekend
CNBC ( USA, Asia, India)
Fox News
MSNBC
CNN (USA, India, International)
Phoenix TV China
New Tang Dynasty TV China
It’s About Finance.com
Business Canada
NDTV India
Reuters Japan
BBC
TV Tokyo
Sino TV
NASDAQ's MarketSite has
worldwide visibility. Over 150
broadcasts per day occur on
location from major domestic and
global news media
NASDAQ International Programs
Worldwide Visibility
2006 Dates
2005 Highlights
• Europe currently has
approximately $1 trillion invested
in US Securities.
• NASDAQ Growth Conference
• Over 100 participating companies
with combined total market value
of $650 billion.
• In addition to their considerable
purchasing power, European
Investors are a longer term, more
stable group of investors.
London, February 7-8 2006
• NASDAQ 17th Investor
Program London, Spring 2006
• NASDAQ 18th Investor
Program London, December
2006
• In excess of 260 investors per
event.
• Over 20,000 portfolio managers,
brokers and analysts worldwide
can view the presentations via
the investors.NASDAQ.com
webcast.
• 90% of the entire European
institutional investor community
investing in US Securities attend
each year.
• International Programs have
been taking place since the early
1990’s.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
• 800+ one-on-one meetings.
22
Brand - NASDAQ is a Diversified Market of Leaders
Companies that List on
NASDAQ Stay and
Grow on NASDAQ
Listed since 1987
Listed since 1972
Listed since 1971
Listed since 1988
Listed since 1999
Listed since 1989
Listed since 1971
Listed since 1978
Listed since 1980
Listed since 1986
Listed since 1992
Listed since 1984
Listed since 1975
Listed since 1985
Listed since 1982
Listed since 1970
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
23
Many of the NYSE’s most respected companies are now
choosing NASDAQ
“Listing on NASDAQ was the right choice
for the new company. We look forward to
a new and growing relationship with
NASDAQ.”
- Sears spokesman Chris Brathwaite
“Since its inception, NASDAQ has shown a spirit
of innovation and a focus on leveraging
technology to provide investors the benefit of
fast, high quality and low cost trade executions.
After a dual listing trial of nearly two years, we
are convinced of NASDAQ’s commitment to a
highly competitive, well regulated marketplace
that is optimal for trading our stock.”
- Charles R. Schwab, Chairman and CEO, Charles
Schwab
"Cadence's experience with being dual listed gave us an
opportunity to compare the relative benefits of both
marketplaces. After careful analysis, we determined that
the NASDAQ electronic trading platform is the preferred
marketplace for many of the institutional investors
trading Cadence shares."
- Bill Porter, SVP and CFO, Cadence Design Systems, Inc.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
24
Professional Investors Prefer NASDAQ
NASDAQ’s high-speed, transparent market brings multiple market participants together and is
increasingly the market of choice for professional investors.
“The liquidity in NASDAQ allows us to execute larger size in the bigname stocks more efficiently and quicker. You hit a button and get
things done. With the New York, you have to think of strategies to
break up your order. It is complicating rather than simplifying.”
Peter Jenkins, Head of North American Equity Trading, Deutsche Asset Management
“ ‘Everybody who does what I do feels like it’s basically a stacked
deck down here,’ said James Malles, head of U.S. equity trading
at UBS Global Asset Management, quoted in the Journal...
‘There's an inherent conflict. The specialists have to provide a
fair and orderly market, but they can trade for their proprietary
account. Those are clearly in conflict with each other.’ ”
James Glassman, American Enterprise Institute
“The New York Stock Exchange specialist system doesn’t enjoy the
confidence of the institutional investor community. I don’t think that’s
going to change anytime soon.”
Kevin Connellan, Head of Trading, Northern Trust Corp
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
25
Services
© Copyright
TheStock
Nasdaq
StockInc.
Market,
Inc.reserved.
All rights reserved.
© Copyright
2005, The2006,
Nasdaq
Market,
All rights
26
NASDAQ Corporate Services – Further driving down the costs
The NASDAQ Corporate Services is designed to provide listed companies the power to maximize their
effectiveness in:
Risk Management: Provide solutions that protect companies against risk.
NASDAQ Insurance Agency is a full service corporate insurance broker specializing in
the protection of Officers and Directors.
Corporate Governance: Provide solutions that empower companies to comply with new regulatory
requirements while mitigating risk.
Equilar is viewed as the “gold standard” in executive compensation data.
National Association of Corporate Directors (NACD) provides NASDAQ-listed
companies with corporate governance educational services at a discount.
WeComply, the leading provider of customizable online “Code of Conduct” training.
Investor Relations: Provide solutions for greater visibility to the investment community.
Shareholder.com, provides award-winning websites, and other critical services to help
public companies communicate more openly with investors.
MetricStream Compliance products and solutions designed to enable public companies to better
manage their compliance processes.
PrimeZone is one of the world’s leading full-text press release, newswire, photo and multimedia distribution
services
Reuters provides research, notes, estimates, financials market data, and filings on more
than 25,000 companies.
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
27
NASDAQ – A Global Market
Competitive Differentiators
• Dash 5 Statistics
• Times of Stress
• Electronic Market
• Off Floor Volume
• Liquidity
Brand
Price
Performance
• NASDAQ Initial
Listing Fees
• NASDAQ
MarketSite
• NASDAQ Annual
Listing Fees
• International
Conferences
• NASDAQ has
Lower Effective
Spreads
• NASDAQ
Composite Index
• A Diversified
Market of Leaders
• More for Your
Money
• NASDAQ
Relationship
Manager
• Market
Intelligence Desk
• NASDAQ
Corporate
Services
• NASDAQ Online
100% Customer Satisfaction
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
Services
28
Your NASDAQ Support Team
Senior Management
Bob Greifeld, Chief Executive Officer, +1 212 401 8901
Bruce Aust, Executive Vice President, +1 212 401 8746
Charlotte Crosswell, Vice President, +44 20 7825 5500
James Ogilvy-Stuart, Head of Asia Pacific, +852 2 580 1028
Regional Directors
Ghanshyam Dass, MD Asia Pacific, +91 984 507 9937
Mikio Fujino, Chief Representative in East Asia, +81 803 024 6138
Asaf Homossany, MD Israel & CEE, +44 20 7825 5537
Paulina McGroarty, MD Europe & Africa, +44 20 7825 5534
Lawrence Pan, Chief Representative in China, +86 13 701 136824
Isabella Schidrich, MD Europe, +44 20 7825 5522
Rebecca Smith, Senior Associate, +44 20 7825 5540
Mohammad Abdul Ali, Associate, +44 20 7825 5506
© Copyright 2006, The Nasdaq Stock Market, Inc. All rights reserved.
29
Associates