17th Consecutive Nasdaq Closing Cross Sets Record for Number of Shares Traded During 2020 Russell US Indexes Reconstitution

Rhea-AI Summary

On June 26, 2020, Nasdaq (NDAQ) reported a record-breaking day for its Closing Cross, facilitating rebalancing for Russell U.S. Indexes for the 17th consecutive year. A total of 1.57 billion shares worth $56.7 billion were executed in just 1.46 seconds, surpassing last year’s figures of 1.279 billion shares and $42.59 billion. This event underscores the importance of accurate price discovery amidst market volatility and the reliance of investors on Russell’s indexes for performance tracking.

Positive

• Record execution of 1.57 billion shares valued at $56.7 billion during the Closing Cross.
• Successful annual reconstitution process enhances market integrity.
• Nasdaq’s technology supports efficiency and transparency for investors.

Negative

• None.

NEW YORK, June 26, 2020 (GLOBE NEWSWIRE) -- Nasdaq (Symbol: NDAQ) today announced the Nasdaq Closing Cross had a record day as it was used for the 17^th consecutive year to rebalance Nasdaq-listed securities in the entire family of  Russell U.S. Indexes, part of leading global index provider FTSE Russell, during their annual reconstitution.

A record 1.57 billion shares representing $56.7 billion were executed in the Closing Cross in 1.46 seconds across Nasdaq-listed securities. This compares with 1.279 billion shares representing $42.59 billion executed in 1.14 seconds across Nasdaq-listed securities during Russell's 32^nd annual reconstitution in 2019.

“Today’s record-breaking Nasdaq Closing Cross benefits issuers and investors by facilitating a transparent and efficient price discovery process,” said Tal Cohen, Executive Vice President and Head of North American Markets at Nasdaq. “This year our markets have withstood significant volatility and exhibited remarkable resiliency. With Nasdaq’s technology supporting the rebalance, Russell’s U.S. indexes continue to accurately reflect the ever-changing state of the equity market and its segments.”

“This is a new record for the Russell U.S. indexes,” said Waqas Samad, CEO of FTSE Russell. “The annual rebalancing is a significant event for the U.S. equity market, and a central part of maintaining the integrity and relevance of our leading set of U.S. benchmarks, which millions of investors rely upon to provide the most comprehensive and accurate measure of the US equity market. Our longstanding and successful work with Nasdaq around the annual Russell rebalance help make it a vital and transparent market event every year.” 

The Closing Cross brings together the buy and sell interest for Nasdaq, NYSE and NYSE MKT stocks, and executes all shares for each stock at a single price, one that reflects the true supply and demand for these securities. All nationally listed securities are eligible for the Nasdaq Closing Cross.

All Russell U.S. indexes are subsets of the Russell 3000^® Index, which represents approximately 98% of the U.S. equity market. Russell U.S. Indexes allow investors to track current and historical market performance by specific market segment (large cap/small cap) or investment style (growth/value/defensive/dynamic). Today, approximately $9 trillion in assets are benchmarked to or invested in products based on the Russell U.S. indexes.

Russell reconstitution day is one of the year’s most highly anticipated and heaviest trading days in the U.S. equity market, as asset managers seek to reconfigure their portfolios to reflect the composition of Russell's newly-reconstituted U.S. indexes. The index reconstitution process was completed today and the newly reconstituted index membership will take effect when markets open on Monday, June 29, 2020.

Please visit our website for more information on the Nasdaq Closing Cross. 

About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.

About FTSE Russell:
FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by London Stock Exchange Group.

For more information, visit www.ftserussell.com.

Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about Nasdaq and its products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq's control. These factors include, but are not limited to factors detailed in Nasdaq's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.

Nasdaq Media Contact
Matthew Sheahan
(212) 231-5945
matthew.sheahan@nasdaq.com

FTSE Russell Media Contact:
Tim Benedict
+1 917 582 0641
TBenedict@lseg.com

NDAQG

FAQ

What is the significance of the Nasdaq Closing Cross on June 26, 2020?

The Nasdaq Closing Cross facilitated a record rebalance for Russell U.S. Indexes, executing 1.57 billion shares valued at $56.7 billion.

How did the 2020 Nasdaq Closing Cross compare to 2019?

In 2020, the Closing Cross executed 1.57 billion shares in 1.46 seconds, a significant increase from 1.279 billion shares executed in 1.14 seconds in 2019.

What assets are tied to Russell U.S. Indexes?

Approximately $9 trillion in assets are benchmarked to or invested in products based on the Russell U.S. Indexes.

When will the newly reconstituted Russell U.S. Indexes take effect?

The newly reconstituted Russell U.S. Indexes will take effect when markets open on June 29, 2020.