Nasdaq OMX Group Inc. has launched a new index calculation system that aims to enable other exchanges to ramp up their own index offerings, the New York-based exchange operator said Monday.
Nasdaq Index Calculation System is a stand-alone product that will provide marketplaces with a platform to compute their own multi-asset, multi-currency indices.
The system will enable exchanges to operate and administer their own index calculations in-house, Nasdaq states, which allows them to create unique products while maintaining operational control over those indices, and intellectual property control.
“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,” said Lars Ottersgard, executive vice president, market technology, at Nasdaq, in a statement.
“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,” Ottersgard added.
The Singapore Exchange (SGX) will utilize the technology to enhance its index services offering, Nasdaq said.