Nasdaq has completed its purchase of the Intercontinental Securities Exchange (ISE) from Deutsche Börse group for $1.1 billion in cash.
ISE operates three US equity options exchanges. The deal includes transfer of ISE’s PrecISE Trade execution management system for options and stock option combinations, plus ISE Ventures and ISE’s Longitude technology for aggregating liquidity.
Nasdaq and Deutsche Börse entered into a sale agreement in March, and the transaction has now closed, having gained all necessary regulatory approvals.
The purchase is intended to improve efficiencies for Nasdaq clients, to improve Nasdaq’s technology offering, and to create more opportunity for innovation within the equities options segment.
It will also increase market share, as, according to Nasdaq, ISE exchanges serve as the venue for more than 15 percent of trading in US options.
When the acquisition was agreed, Nasdaq CEO Bob Greifeld said: "The equities options business has been core to our long-term strategy, and we believe an essential component to the strength of the Nasdaq franchise."
He added: "I believe this transaction advances our ambitions with all our stakeholders, including clients and shareholders."
On completion of the acquisition, Tom Wittman, Nasdaq’s executive vice president and global head of equities, added: “The hallmark of Nasdaq’s DNA is to provide innovative solutions to reduce inefficiency and improve the way market participants trade and interact. The ISE acquisition squarely fits within these objectives.”
“The merger of Nasdaq and ISE’s innovative options franchises will result in a combination of talent and technology from both organisations.”
Jeanine Hightower, currently senior vice president for business development at ISE will take on the role of ISE COO, and will oversee the business throughout the migration to Nasdaq’s INET technology platform.
Hightower has been with ISE since 2004, with previous roles at the exchange including head of options business development and director of business development and product management.
In her new position, she will work closely with the US options team, and will report to Kevin Kennedy, head of US options.
