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NASDAQ Services
Design
Index and Product Design Consulting
Home to two of the most widely watched indexes in the world -- the patented NASDAQ-100 Index and the benchmark NASDAQ Composite Index -- NASDAQ offers custom index design services tailored to the specific investment objectives or strategies of product issuers, sponsors, and distributors. NASDAQ's innovative index methodologies allow you to better capture an already existing index opportunity or create something new for the market. Either way, you can trust that NASDAQ Financial Products, as a global index leader, will collaborate with you to create an index that fits your specific needs comprising a broad range of underlying global asset categories, selection criteria and weighting methodologies. Our index designs are supported by full analytic capabilities, including historically reconstructed price histories, correlation and volatility analysis and other advanced quantitative means to measure index liquidity to support active financial instruments.
Calculation
Index Calculation and Dissemination
All NASDAQ indexes are calculated based on precise methodology that is available to investors through www.nasdaq.com/indexes. We calculate indexes that are broad market, industry sector, country or theme-based and that utilize various weighting methodologies. Third parties can request NASDAQ calculation as a stand-alone service even if the index is not co-branded or custom designed by NASDAQ. Prices of component securities enter NASDAQ's proprietary index calculation engine and are used to value the index every 15 seconds. Our indexes are calculated on both a price-return basis and a total-return basis. NASDAQ indexes are ordinarily disseminated real time from 9:30:15 a.m. to 5:16:00 p.m. ET through the award-winning, state-of-the-art NASDAQ data factory that Bloomberg, Yahoo! Finance, Reuters, and CNBC rely on.
Index Administration
NASDAQ Financial Products handles the administration of indexes for ongoing maintenance and continuity. Index administration requires daily, weekly, quarterly, semi-annual and annual review and periodic precise divisor adjustments. We track corporate actions daily to determine potential component or share changes and offsetting divisor adjustments by reviewing many sources including news and public filings, market information and company investor relations communications. Week-to-week we monitor total shares outstanding and schedule share changes to index components as necessary in relation to certain thresholds. Share rebalances generally occur on a quarterly basis and most index components are re-evaluated and re-ranked semi-annually or annually to determine if they continue to meet eligibility criteria. Accuracy, transparency, integrity - these are the qualities exemplified by NASDAQ's index program.
Licensing
Index Licensing and Marketing Support
NASDAQ licenses its indexes to investors, asset managers and financial institutions worldwide to issue, sponsor, or distribute a variety of financial instruments. Various licensing arrangements are available to our clients depending on the nature of the financial instrument and/or scope of the index license. We maintain a book of index licensing arrangements amounting to a notional value of over $200 billion with over 150 counterparties in over 35 countries. We also provide licensing services to other index and financial product developers worldwide such as:
- assist in negotiations, legal review, and administration of licensing arrangements;
- maintain SOX-compliant licensing books and records;
- collect and distribute licensing fees to appropriate parties; and
- audit and confirm licensing fees.
Marketing for Third-Party Indexes
NASDAQ Financial Products promotes third-party indexes as vigorously as its own branded indexes. We are able to market third-party indexes to our current and prospective customers through various direct communications, a consistent advertising campaign in trade publications, calling programs and international and domestic conferences.
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