Nasdaq Implements Index Calculation System for Exchanges and Marketplaces

Nasdaq’s newly launched system will also administer functionality to in-house calculations across a number of asset classes.

Nasdaq has announced the implementation of its Nasdaq Index Calculation System, a comprehensive solution that helps provides marketplaces with an index calculation platform for computing multi-asset, multi-currency indexes, according to a Nasdaq statement.

Nasdaq’s newly launched system will also administer functionality to in-house calculations, with specific regard to IP ownership controls over marketplaces’ indexes. More specifically, this will afford exchanges greater levels of flexibility across a multitude of mediums. Additionally, the Singapore Exchange (SGX) has already endorsed the new technology and will be fully utilizing the system in their respective index services offering.

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The Index Calculation System will cater to multiple asset classes, namely multi-currency coverage. The system relies on complex algorithms with management of calculation creation and supervision, utilizing a deep historical database, restatements and back-testing methodology.

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According to Lars Ottersgard, Executive Vice President, Market Technology, Nasdaq, in a recent statement on the launch, “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.”

“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,” he added.

“We purposely made this new index calculator highly customizable and able to handle any type of index or asset type. 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,” noted Torbjorn Nager, Lead Product Manager, Market Technology, Nasdaq, in an accompanying statement.

Earlier this month, Stellar Trading Systems partnered with Nasdaq, introducing its connectivity solutions to Nasdaq Futures, Inc. (NFX), which will usher in the launch of the NFX platform in H2 2015.

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