Nasdaq Partners With Israeli Exchange

Nasdaq Stock Market(NDAQ) is teaming with an Israeli stock exchange in a move intended to expand its international footprint.

Nasdaq signed a so-called memorandum of understanding with the Tel Aviv Stock Exchange, under which the two exchanges will "develop the channels of communication" between their respective markets and facilitate the trading of listed stocks.

Nasdaq currently has 70 Israeli companies publicly listed on the exchange.

The U.S. electronic market has been busy improving its product offering and global positioning, particularly in light of the NYSE Euronext(NYX) merger this spring. Earlier this year, Nasdaq was in desperate need of a Plan B for its strategic growth plan, after it failed to acquire the London Stock Exchange in February. Nasdaq was left holding onto a nearly 30% stake in the London bourse.

Tel Aviv Exchange CEO Praises Nasdaq Deal

Making matters worse, Nasdaq agreed in May to purchase Nordic exchange operator OMX, but this summer, the Dubai government offered to buy the OMX for $3.9 billion -- about 10% above what the Nasdaq and OMX had agreed to.

Nasdaq and Borse Dubai ended up reaching an agreement in September giving Nasdaq control of the OMX stock exchange and the Dubai stock exchange a 20% stake in Nasdaq. The Dubai exchange also purchased Nasdaq's remaining 28% stake in the London Stock Exchange.

The deal is expected to be completed in the first quarter.