Nasdaq Stock Market
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
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
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Making matters worse, Nasdaq agreed in May to purchase Nordic exchange operator
, 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.
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.
Both Nasdaq and NYSE have been looking to boost their international listings. Nasdaq has been eagerly promoting Portal, its platform for unregistered securities, as a way for international companies to list in the U.S. without having to follow the rigorous requirements under Sarbanes-Oxley.
This month, it partnered with 12 banks and brokerages, including
and other top banks, to include technology that will create "an industry standard facility" that will serve the market for 144a equity securities.
Nasdaq has also been making inroads in the options marketplace.
In October, it agreed to acquire the
Boston Stock Exchange
for around $61 million. Earlier this month it also agreed to purchase the
Philadelphia Stock Exchange
, the third-largest options exchange in the U.S., for $652 million.
Nasdaq shares recently were losing 0.9% to $43.22.