Nasdaq Press release on an iteration of its system;
NASDAQ's Electronic Trading Platform for the 144A Private Placement Market Begins Operation
NEW YORK, Aug. 15, 2007 (PRIME NEWSWIRE) -- The Nasdaq Stock Market, Inc. (NASDAQ(r)) (Nasdaq:NDAQ), today announced that its new centralized trading and negotiation system for 144A securities begins operating today. The fully automated Web-based platform, an outgrowth of NASDAQ's 17-year old PORTAL system, is the first and only centralized electronic system for displaying and accessing trading interest in 144A issues.
The new PORTAL system is available to all qualified users. It is intended to improve the efficiency and transparency of the private placement market -- thereby encouraging capital formation.
"The launch of NASDAQ's PORTAL trading platform is a milestone in the transformation of the capital raising process in the U.S.," said NASDAQ Executive Vice President John Jacobs. "The PORTAL platform will bring the same efficiency and transparency to the 144A market that NASDAQ brought to public equity trading in the U.S. 36 years ago."
The PORTAL Market has this year alone designated more than 1,700 144A equity and debt securities as PORTAL securities, compared to nearly 2,700 in all of 2006. Among the companies that have raised capital using The PORTAL Market this year and last are Archer Daniels Midland Company, Adidas (Germany), Bank of China, Rosneft (Russia), Samsung (Korea), Telstra (Australia), and UTI Bank (India).
Following today's launch of a centralized trading and negotiation system for 144A equity securities, NASDAQ anticipates it will phase in debt securities in the fourth quarter.
The private placement market has grown substantially in the last five years. NASDAQ estimates that the amount of equity and debt capital raised using Rule 144A has grown three-fold since 2002 and exceeded $1 trillion in 2006 for the first time. In the first half of 2007, global equity and debt capital raised in conjunction with a 144A tranche was almost $1 trillion, a 43% increase over the first half of 2006.
About NASDAQ
NASDAQ is the largest U.S. equities exchange. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks as well as a leading liquidity pool for trading NYSE-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom/.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein may contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the capabilities, timing and expected benefits of the planned trading platform, the related shareholder tracking mechanism and the PORTAL Market. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the control of The Nasdaq Stock Market, Inc., which could cause actual results to differ materially from historical results, performance or other expectations and from any opinions or statements expressed or implied with respect to future periods. These factors include, but are not limited to, NASDAQ's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in the Company's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
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