More exchanges to morph into solutions providers?

The Nasdaq OMX is leading the way for exchanges bent on developing a new source of revenue by becoming technology vendors. Via OMX, the Nasdaq OMX provides technology to more than 60 exchanges around the world, notes Securities Industry News. The NYSE Eurex has moved aggressively in that direction as well, as has the London Stock Exchange. This makes perfect sense. These exchange companies have developed some dazzling market technology. Why wouldn't they try to sell it? A lot of top financial services companies, very proud of their systems, have attempted as much over the years--with mixed results. TowerGroup says that about one-tenth of the world's exchanges are now selling technology. That could rise to 80 percent by 2010. At some companies, tech sales could account for 40 percent of revenue. You have to wonder if there are enough small exchanges out there who will buy all that tech. Most likely not. So vendors-exchange will likely have to branch out and find other buyers.   

For more:
- here's the Securities Industry News article

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