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Nasdaq OMX Group Management Discusses Q2 2012 Results - Earnings Call Transcript

Following the prepared remarks, we'll open up to Q&A. You can access the results, the press release and the presentation of NASDAQ OMX's Investors website, nasdaqomx.com. We intend to use our website as a means of disclosing material non-public information in complying with disclosure obligations and SEC Regulation FD, and these disclosures will be included on the Events and Presentations section of the site.

Now, before I turn the call over to Bob, I'd like to remind you that certain statements in this prepared presentation and during the Q&A period may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation and Reform Act of 1995. The actual results may differ materially from those projected in these forward-looking statements. Information concerning that could cause actual results to differ from forward-looking statements is contained in our press release and other periodic reports filed with the SEC.

And with that, I'll turn the call over to Bob.

Robert Greifeld

Thank you, John. Your introduction will become longer than my comments soon enough. For the second quarter of 2012, our non-GAAP exchange revenues were $413 million, down slightly to the -- compared to the $415 million in the prior-year quarter but up 3% when you exclude the net impact of acquisitions and the foreign currency charges. Our non-GAAP EPS was $0.64, up $0.02 compared to the prior-year quarter. This performance was achieved with a significant currency headwind. If exchange rates had held constant with prior-year levels, our non-GAAP EPS would have been $0.03 higher, tying our all-time record.

Given the weak trading volumes we are experiencing, this is a strong performance. We continue to see good growth on our non-transaction driven businesses, which are mainly recurring and subscription base. These revenues totaled $291 million and were up 4% compared to the second quarter of 2011. This growth was the result of 8% revenue growth in our global market data business. Access and brokerage services continue to perform well, up 12% driven by our new technology introductions. Our transaction-based businesses, equity and option trading in the U.S. and Europe, saw relatively weak volumes compounded by a weakening euro. Currency reduced our second quarter 2012 transaction revenues by $5 million year-over-year.

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