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The story
1971–1980: Founding and early acquisitions
The Nasdaq was established in 1971 by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority (FINRA), as the world's first electronic stock market. Initially, Nasdaq operated as a quotation system for over-the-counter (OTC) securities, providing electronic bid and ask prices to increase transparency among market participants. Over time, Nasdaq expanded its functions to enable actual trading, eventually becoming a full stock exchange. This transition marked a shift in how securities were traded, focusing on speed, automation, and accessibility.
In 1992, Nasdaq entered a partnership with the London-based International Stock Exchange, establishing the first intercontinental linkage of securities markets. In 1998 a merger happened with the American Stock Exchange (Amex), forming Nasdaq-Amex Market Group.
1980–2008: European stock exchanges merged in OMX AB
OM AB (Optionsmäklarna) was a futures exchange founded by Olof Stenhammar in the 1980s to introduce trading in standardized option contracts in Sweden. OM acquired the Stockholm Stock Exchange in 1998 and unsuccessfully attempted acquisition of the London Stock Exchange in 2001. During the dot-com bubble in the early 21st century, OM, together with investment bank Morgan Stanley Dean Witter, launched a virtual European stock exchange called Jiway. The project was not successful and was canceled on October 14, 2002.
On September 3, 2003, the Helsinki Stock Exchange (HEX) merged with OM, and the joint company became OMHEX. On August 31, 2004, the brand name of the company was changed to OMX. OMX then acquired the Copenhagen Stock Exchange in January 2005 for €164 million. On September 19, 2006, the Iceland Stock Exchange owner Eignarhaldsfelagid Verdbrefathing (EV) announced it would be acquired by OMX in a deal valuing the company at 250 million SEK. The transaction was completed by the end of the year.
The company took a 10% stake in Oslo Børs Holding ASA, the owner of the Oslo Stock Exchange in October 2006. As of September 2016, Nasdaq is not a major shareholder in the Oslo Stock Exchange holding company, which following a merger is currently called Oslo Børs VPS Holding ASA. Nasdaq has, however, publicly stated its interest in eventually acquiring the Oslo Stock Exchange.
In November 2007, OMX acquired the Armenian Stock Exchange and the Central Depository of Armenia. Nasdaq sold the exchange and the depository in 2018 to the Central Bank of Armenia.
In December 2005, OMX started First North, an alternative exchange for smaller companies, in Denmark. The First North exchange expanded to Stockholm in June 2006, Iceland in January 2007 and Helsinki in April 2007. The Markets Technology division of Computershare was acquired in 2006. The acquisition greatly expanded its product offerings and made its client list the largest of all trading system technology providers.
On October 2, 2006, the group launched a virtual Nordic Stock Exchange after merging the individual lists of shares traded at its three wholly owned Nordic exchanges into a combined Nordic List. Companies listed on the Iceland Stock Exchange have also since been merged into the list. OMX also launched a pan-regional benchmark index known as the OMX Nordic 40 on the same date; however, the individual exchanges have also retained their own national benchmark indices.
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2007: Creation of Nasdaq OMX Group
On May 25, 2007, NASDAQ agreed to buy OMX for US$3.7 billion. In August, however, Borse Dubai offered US$4 billion, prompting speculation of a bidding war. On September 20, 2007, Borse Dubai agreed to stop competing to buy OMX in return for a 20% stake and 5 percent of votes in NASDAQ as well as NASDAQ's then 28% stake in the London Stock Exchange. In a complex transaction, Borse Dubai acquired 97.2% of OMX's outstanding shares before selling them on to NASDAQ. The newly merged company was renamed the NASDAQ OMX Group upon completion of the deal on February 27, 2008.
On June 18, 2012, NASDAQ became a founding member of the United Nations Sustainable Stock Exchanges initiative on the eve of the United Nations Conference on Sustainable Development (Rio+20).
From Wikipedia’s article on Nasdaq, Inc., shared under CC BY-SA 4.0.7