Credit: Shutterstock photoNasdaq OMX Group, Inc.NDAQ announced that it will offer its X-Stream trading technology to Noble Markets. This will enable its customers to buy and sell cryptocurrencies and other digital assets.
However, shares lost 2.3% in the last two trading sessions owing to broader market fundamentals.
New York-based Noble Markets is a digital currency marketplace and technology platform serving financial and commercial institutions, professional traders and other exchanges trading digital currencies and other assets.
Per the deal, Noble Markets will use Nasdaq's X-Stream technology to offer institutional investors a credible platform for trading digital currency. Additionally, it currently connects 30 global marketplaces that use the multi-asset trading platform.
The technology can handle more than 40,000 orders a second. Nasdaq's X-stream trading technology also helps customers reliably trade billions of dollars daily in any part of the world.
Moreover, with this deal Nasdaq will be able to venture into the cryptocurrency space without putting its exchanges at risk. Of late, bitcoin - an innovative payment service - has gained considerable recognition in the emerging digital currency space. However, it had earned a bad reputation earlier for being a favored currency for illegal transactions online. The Nasdaq deal has turned the tables with bitcoin being accepted as a legitimate financial product. The global financial system had previously been affected by price fluctuations, investment scams and cybersecurity concerns. However, the deal will now pave way for financial institutions to own and trade digital currencies that should make the global financial system more efficient.
Nasdaq's X-stream technology is well positioned to contribute to growth as the industry is becoming more focused on solutions that effectively manage risk. These factors also attract new listings and lead to client activity in a recovering economy.
Currently, Nasdaq OMX carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Better-ranked stocks in the securities exchange sector include MarketAxess Holdings Inc. MKTX , CME Group Inc. CME and Intercontinental Exchange, Inc. ICE . While MarketAxess Holdings sports a Zacks Rank #1 (Strong Buy), CME Group and Intercontinental Exchange hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
INTERCONTNTLEXC (ICE): Free Stock Analysis Report
CME GROUP INC (CME): Free Stock Analysis Report
NASDAQ OMX GRP (NDAQ): Free Stock Analysis Report
MARKETAXESS HLD (MKTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
