NASDAQ OMX Is Acquiring The eSpeed Platform To Offer Trading Of U.S. Treasuries

Posted Apr 1, 2013

The NASDAQ OMX Group, Inc. (NDAQ) has acquired the eSpeed platform for $750 million in cash from BGC Partners Inc.  The acquisition was done in cash plus certain contingent issuances of stock that approximate certain tax benefits to NASDAQ OMX.  eSpeed runs a fully executable central limit order book for electronic trading in U.S. Treasures.  This will give NASDAQ OMX a strong entry point for the electronic fixed income business.  When the transaction is completed, the eSpeed platform will become a part of the NASDAQ OMX Transaction Services business, which offers equities, derivative, commodities, and exchange traded products.

“We are building a diverse, customer-centric portfolio of corporate, trading, technology and information solutions,” said NASDAQ OMX CEO Bob Greifeld in a prepared statement. “We view the eSpeed platform as a compelling extension of NASDAQ OMX’s strategic direction as eSpeed is a major player in the U.S. Treasury market, has derivative-industry margins, 70 percent of its revenue is derived from fixed contracts and it has a long-standing presence on trading desks around the world. The acquisition furthers our stated diversification strategy, and strengthens our commitment to deliver significant value to shareholders.”