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Nasdaq quarterly profit soars on record trading volumes
[NEW YORK] Transatlantic exchange operator Nasdaq on Wednesday reported a 38.5 per cent rise in quarterly profit as more people took to trading from home while under lockdown, with pandemic-driven market volatility also boosting volumes to record levels.
Trading in technology stocks, which were relatively insulated from coronavirus-led business curbs, soared during the quarter as more people under lockdown bought these stocks. Volumes were also boosted by the recent move by retail brokerages to offer commission-free trading.
Nasdaq benefits from trades on its exchange and when assets linked to its indexes rise.
Revenue at Nasdaq's market services unit, which accounted for 40 per cent of the total revenue, rose 22 per cent to US$276 million. The unit oversees transactions, clearing and settlements.
The company also narrowed its forecast for adjusted operating expenses for 2020 to between US$1.33 billion and US$1.36 billion, from an earlier range between US$1.32 billion and US$1.37 billion.
Net income attributable to Nasdaq rose to US$241 million, or US$1.45 per share, in the second quarter ended June 30, from US$174 million, or US$1.04 per share, a year earlier.
Revenue, excluding transaction-based expenses, rose 12 per cent to US$699 million.