19th Consecutive Nasdaq Closing Cross Sets Record for Number of Shares Traded During 2022 Russell US Indexes Reconstitution

Rhea-AI Summary

On June 24, 2022, Nasdaq reported a record 3.31 billion shares executed in its Closing Cross, valued at $63.8 billion, during the Russell US Indexes annual reconstitution. This surpasses the previous year's figures of 2.37 billion shares and $80.9 billion. Nasdaq's technology was highlighted as crucial in providing efficient price discovery amidst market volatility. The Russell reconstitution reflects significant market changes, including the first reshuffle of the largest five companies since 2019 and the introduction of two companies with over $2 trillion market cap, emphasizing the importance of Nasdaq's role in maintaining market integrity.

Positive

• Record 3.31 billion shares executed in Closing Cross, representing $63.8 billion.
• Surpassed last year's Closing Cross figures of 2.37 billion shares and $80.9 billion.
• Increased market efficiency and transparency due to Nasdaq's advanced technology.
• Significant changes in the Russell Index include two companies surpassing $2 trillion market cap.

Negative

• Decrease in the dollar value of shares executed compared to last year's $80.9 billion.

NEW YORK, June 24, 2022 (GLOBE NEWSWIRE) -- Nasdaq, Inc. (Nasdaq: NDAQ) today announced the Nasdaq Closing Cross had a record day as it was used for the 19^th consecutive year to rebalance Nasdaq-listed securities in the entire family of Russell US Indexes, part of leading global index provider FTSE Russell, during its annual reconstitution.

A record 3,314,650,992 shares representing $63.8 billion were executed in the Closing Cross in 2.04 seconds across Nasdaq-listed securities. This compares with 2,370,203,915 shares representing $80.9 billion executed in 1.97 seconds across Nasdaq-listed securities during Russell's 33rd annual reconstitution in 2021.

“Today’s record-breaking Nasdaq Closing Cross is a testament to the continued investment in our technology,” said Tal Cohen, Executive Vice President and Head of North American Markets at Nasdaq. “We have worked diligently over the years to provide a best-in-class experience for all investors throughout some of the most volatile market periods on record. Nasdaq’s markets provide the most transparent and efficient price discovery process to ensure that FTSE Russell’s US indexes continue to accurately reflect the dynamic state of the equity markets.”

“We’re delighted to celebrate yet another record-breaking year with Nasdaq for shares traded during our 34^th Russell Reconstitution. Our annual index rebalancing remains such an important event for investors, ensuring that the Russell US Indexes accurately reflect the ever-changing state of the US equity market and its market segments. This year has been no exception, for the first time we have two companies with a total market cap of over $2 trillion and the first reshuffle of the largest five companies since 2019. Leveraging Nasdaq’s outstanding Closing Cross technology enables us to maintain the integrity and relevance of our leading suite of US benchmarks, keeping markets transparent,” said Susan Quintin, Global Head of Equity Index Product Management at FTSE Russell. 

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 US Indexes are subsets of the Russell 3000^® Index, which represents approximately 98% of the US equity market. Russell US 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 $12 trillion in assets are benchmarked to or invested in products based on the Russell US Indexes.

Russell reconstitution day is one of the year’s most highly anticipated and heaviest trading days in the US equity market, as asset managers seek to reconfigure their portfolios to reflect the composition of Russell's newly-reconstituted US indexes. The index reconstitution process was completed today and the newly reconstituted index membership will take effect when markets open on Monday, June 27, 2022.

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 global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $20 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 ETFs, structured products and index-based derivatives.

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 applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.

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 Contacts:
Bianca Fata
(646) 895-5851
Bianca.Fata@nasdaq.com

FTSE Russell Media Contact:
Simon Henrick
+44 (0)20 7797 1222
newsroom@lseg.com

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FAQ

What is the significance of Nasdaq's Closing Cross on June 24, 2022?

The Nasdaq Closing Cross executed a record 3.31 billion shares, indicating robust trading activity and efficiency.

How did Nasdaq's Closing Cross perform compared to last year?

This year, $63.8 billion worth of shares were executed compared to $80.9 billion last year.

What changes occurred in the Russell US Indexes during the reconstitution?

The reconstitution included the first reshuffle of the largest five companies since 2019 and two companies exceeding a $2 trillion market cap.

How does the Nasdaq Closing Cross enhance market transparency?

It consolidates buy and sell interests to execute trades at a single price, reflecting true supply and demand.

What is the impact of Russell reconstitution on asset managers?

It is a critical trading day as asset managers adjust portfolios based on the newly reconstituted Russell Indexes.