Nasdaq (NDAQ) Partners With LEX, Offers its SaaS Platform

Nasdaq, Inc. NDAQ has teamed up with LEX Markets Corp. to boost the trading platform of Lex and enable people to trade commercial real estate securities.

NY-based LEX is an operator of a commercial real estate securities marketplace. The company's platform enables users to buy and sell shares of individual commercial properties, giving retail investors the flexibility to create customized income-producing real estate portfolios. Also, it enables property owners to unlock equity while retaining operational control of their properties. It provides a more efficient and cost-effective way to raise capital through a public offering of a partial interest in the property at fair market value.

Recently, Nasdaq launched an end-to-end SaaS platform known as Marketplace Services Platform in a bid to ease the exchange of assets, services and information across market ecosystems. This SaaS platform will be utilized by LEX for its alternative trading system (ATS). The underlying technology will provide LEX with a full range of trading functions, interfaces and surrounding market operations capabilities in a dynamic environment that can flexibly adjust as LEX’s business evolves.

The Lex-Nasdaq tie-up aims to develop the most powerful platform for trading real estate securities. It will assist the accredited and unaccredited investors to invest in individual properties. Further, it will reduce the cost of capital for the real estate industry.

The Market Technology business of Nasdaq is a leading global technology solutions provider and partner to exchanges, clearing organizations, central securities depositories, regulators, banks, brokers, buy-side firms and corporate businesses. It powers over 100 market infrastructure operators in more than 50 countries. It provides technology solutions for trading, clearing, settlement, surveillance and information dissemination to markets with wide-ranging requirements, from the leading markets in the United States, Europe and Asia to emerging markets in the Middle East, Latin America, and Africa.

Revenues in this segment increased at a two-year CAGR (2017-2019) of 17% owing to an increase in the size and number of software delivery projects, an increase in SaaS surveillance revenues, and higher change request revenues.

Shares of this Zacks Rank #3 (Hold) stock have rallied 23.5% in the past year, outperforming the industry’s increase of 4.8%. Solid fundamentals should help the stock retain the momentum.

Stocks to Consider

Some better-ranked stocks from the security and exchange industry include MarketAxess Holdings Inc MKTX, Deutsche Boerse AG DBOEY and Green Dot Corporation GDOT. While MarketAxess sports a Zacks Rank #1 (Strong Buy), Deutsche Boerse and Green Dot carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MarketAxess operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments worldwide. It surpassed estimates in three of the last four quarters, with the average positive surprise being 1.09%.

Deutsche Boerse operates as an exchange organization in Europe, the United States, and the Asia-Pacific and engages in electronic trading of derivatives, foreign exchange, operating Eurex Repo over the counter trading platform and electronic clearing architecture. It came up with four-quarter average positive surprise of 15.38%.

Green Dot operates as a financial technology and bank holding company in the United States. It offers deposit account programs, consumer and small business checking accounts, network-branded gift cards, secured credit cards and other financial services. It surpassed estimates in each of the last four quarters, with the average positive surprise being 247.59%.

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