Nasdaq, the world’s second largest stock market, is diversifying its revenue streams. It recently entered a deal with UK-based ‘Football Index’ a sports betting firm which allows people to bet on players. The American exchange will provide technology to the sports betting company.
Nasdaq’s CEO, Adena Friedman, told Bloomberg that the business is more than just a stock exchange. “Complacency is the killer of every great company,” she said in an interview. Nasdaq performs close to 20 percent of the equity trades in the US.
Tight competition in the stock market led Nasdaq to diversify its income streams. The exchange generates only 25 to 30 percent of its revenue from stock trading. The rest of the income comes from data and analytics, corporate services, and trading systems.
The New York-based exchange provides trading technology to exchanges like the Bermuda exchange, Indonesian exchange, and Iraq’s bourse. Additionally, Nasdaq has partnerships with other sports betting and horse racing companies such as the Hong Kong Jockey Club and Australia’s Tabcorp.
Nasdaq is not the only exchange moving into other fields, London Stock Exchange (LSE) is also working on increasing its income streams. Recently, LSE revealed plans to acquire Refinitiv, a data services company. The UK exchange intends to trade data through the new acquisition.